Symbolic imageEU and China agree cap on Chinese hybrid car imports
The EU and China have agreed to limit Chinese hybrid and plug-in hybrid imports to 350,000 cars a year. The cap applies from December.
Trade Commissioner Maroš Šefčovič announced the deal on Friday, 9 October, after two days of talks in Beijing, and the figures became public on Monday. The quota runs for four years and lets China raise exports by 6 percent a year. A senior EU official said China's share of the EU hybrid market would fall from 12 to 6 percent. The Commission expects 600,000 to 800,000 Chinese hybrid imports in 2026. The EU will enforce the cap through a WTO-compatible safeguard clause, and national customs authorities must turn back cars above the quota, whoever makes them.
Tariff cuts and doubts
From 1 January China will lower tariffs on car parts, olive oil, shoes and ice cream, saving European exporters 225 million euros, according to the Commission. It sees China's acceptance of export restraint as a signal on the EU's trade deficit, which it puts at one billion euros a day. MEPs and member states warn this can only be a first step, and the Financial Times's trade newsletter calls it a short-term fix and a step back to managed trade.
Carmakers want more protection
Renault chief executive François Provost called the influx of Chinese cars unsustainable for Europe. President Emmanuel Macron said on Monday that France and Germany are close to a deal on EU car policy, including Made in EU rules. Bloomberg reports that carmakers back the cap as a first step, and EU leaders discuss China at a summit this week.