EU to Limit Chinese Hybrid Imports to 350,000 Vehicles a Year

what happened

The European Union plans to impose a yearly ceiling of 350,000 hybrid vehicles imported from China, a senior EU official told Dow Jones Newswires. The measure could take effect in early December, following progress in trade discussions between the two sides.

Over the next four years, Brussels intends to restrict imports of Chinese hybrids and plug-in hybrids, with the goal of cutting China's share of the bloc's market by half. The limit would rise by a fixed 6% each year. According to the official, that design is intended to reduce China's hybrid exports to the EU by more than half.

EU trade chief Maros Sefcovic held talks in Beijing earlier this month with Chinese Commerce Minister Wang Wentao. European authorities are trying to reset the 27-member bloc's relationship with China amid concern over an increase in lower-priced imports. The EU's trade gap with China totaled 360 billion euros last year, or about $403.3 billion. China also agreed to reduce tariffs on about 4 billion euros of EU goods, including auto parts, footwear, ice cream and olive oil.

why it matters

The planned ceiling could affect Chinese vehicle shipments and add friction to EU-China trade relations. Beijing's tariff concessions on European goods show that the talks also produced measures favoring EU exporters.

instruments