Report Chinese Hybrid Cars: EU Prepares Import Restrictions

According to Bloomberg, the European Commission could impose temporary restrictions on imports of Chinese hybrid cars. Talks are set to begin in Beijing on Thursday.

According to sources, the European Union is preparing measures to limit imports of Chinese hybrid vehicles into the European Economic Area. The European Commission could impose restrictions after sales of hybrid vehicles manufactured in China rose sharply in Europe, the news agency Bloomberg reported on Wednesday, citing people familiar with the matter. According to the report, these vehicles now account for a quarter of total sales. The growth in imports of Chinese electric vehicles, on the other hand, has slowed because they are already subject to high EU tariffs.

The EU can impose protective measures to restrict products from a specific sector if there is a sharp increase in imports. For example, it can introduce tariff quotas, under which imports exceeding a certain quantity are subject to a duty. The cap proposed by the European Union would be temporary, Bloomberg reported.

Macron and Merz Call for Protective Measures

Hybrid vehicles could be used as a test case. If the measures prove effective, they could also be applied to other sectors where the EU identifies trade imbalances, the report added. A Commission spokesperson declined to comment to Bloomberg .

German Chancellor Friedrich Merz and French President Emmanuel Macron had jointly called for new protective measures. Systematic market-distorting practices jeopardize competition for European companies and lead to increasing dependencies, according to a letter to European Commission President Ursula von der Leyen.

Idea: Expedited Procedure for Excluding Individual Exporting Countries

Among other things, the heads of government are proposing a mechanism designed to prevent excessive dependence on suppliers from individual countries. In addition, they plan to establish a procedure that would allow another country to be excluded from the European single market through an expedited process.

Merz and Macron do not name any specific country in this context. However, the main factor behind this is likely to be China’s trade policy. Among other things, the EU accuses China of providing state subsidies and having excess capacity, which it says make it harder for European companies to compete.

China Voices Criticism—Bilateral Talks Are Coming Up

Meanwhile, China had already criticized Germany and France for their call for new European safeguards against unfair trade practices shortly before the Bloomberg report. “Protectionism cannot boost competitiveness,” said a spokesperson for the Ministry of Commerce in Beijing. Decoupling and cutting off supply chains harm others and do not benefit oneself.

The criticism from Beijing came just before new trade talks. EU Trade Commissioner Maroš Šefčovič is expected in Beijing on Thursday and Friday. Talks with China’s Minister of Commerce Wang Wentao on the strained economic relations are planned there.