EU negotiators head to China hoping to curb cheap imports of hybrid electric cars

EU trade negotiators are set to embark on a two-day mission to China, aiming to negotiate a breakthrough deal that tackles Beijing's record £1bn-a-day trade surplus. The talks, which are scheduled to commence in the coming days and continue until late Friday, are centered on curbing Chinese exports of cheap hybrid electric cars into Europe.

Trade Commissioner Maroš Šefčovič and his team are expected to reach a "tangible, meaningful and measurable" agreement before the EU leaders' meeting in Brussels next week, where China is a key agenda item. The talks come after diplomatic efforts to avoid a full-scale trade war began at the end of June, with little hope that China would curb exports to the EU due to its historical ability to quickly pivot when faced with trade barriers.

Last month, the EU requested China to voluntarily restrict hybrid exports, warning that protective measures, including quotas, could be imposed if they remained unfettered. Germany's Chancellor Friedrich Merz recently agreed on a "historic U-turn" in policy, aligning with France's Emmanuel Macron to authorize the EU to defend trade by short notice, paving the way for the use of new instruments and measures to protect European industries from Chinese competition.