EU caps Chinese hybrid car imports at 350,000 annually in four-year deal
The European Commission has finalized a four-year agreement with China to limit annual imports of hybrid electric vehicles to 350,000 units, effective December. This measure aims to halve China’s current 6% market share in the EU, where sales of battery and plug-in hybrids are projected to reach 800,000 this year. The quota is implemented under World Trade Organization safeguard rules, allowing for swift enforcement without lengthy anti-dumping investigations. Vehicles exceeding the limit will remain blocked in European customs rather than facing tariffs. Chinese manufacturers assembling cars within the EU, such as in Hungary or Spain, are exempt from the cap, while EU firms producing in China remain subject to it. China has agreed to reduce tariffs on auto parts and cut duties on EU footwear, olive oil, and ice cream. The deal addresses a growing EU trade deficit with China, estimated at £1 billion per day, and marks a shift from export-focused strategies to import curbs to prevent deindustrialization.
