FT: EU demands China to limit hybrid car exports

The European Union has called on China to voluntarily limit the export of hybrid cars. This is reported by the Financial Times (FT), citing unnamed sources. According to them, European automakers are already forced to massively reduce the workforce due to the fact that the market is flooded with cheaper models of Chinese production.

Brussels is now demanding that Beijing limit exports, otherwise the EU will increase import duties, which could lead to a new round of trade war. “If they don’t restrict their exports to our market, we will,” an EU official told the FT. We have to act. This is regulated trade.”.

According to sources, the EU wants sales of Chinese-made hybrid cars to account for no more than 15% of total hybrid sales in the EU. Chinese hybrids now account for about a third of the European market.

A spokesman for European Trade Commissioner Maros Sefcovic confirmed he will hold talks with Chinese Trade Minister Wang Wentao this week, with talks to be held in Beijing in October.

Eugene Hvostik