EU deal with China limits imports of hybrid electric vehicles
Brussels uses WTO rules to quickly impose 350,000 vehicle-a-year quota, which will halve Chinese market share to 3% Business live – latest updates VW boss backs EU plan to bolster domestic industry The EU is to limit the number of hybrid electrical vehicles imported from China to 350,000 cars a year, the European Commission has confirmed. Imports have been soaring in the last two years with about…
The European Union has agreed to limit the import of hybrid electric vehicles from China to 350,000 cars per year, starting in December. This decision comes after a four-year agreement reached in Beijing, where China's share of the hybrid vehicle market was expected to drop from 6% to 3%. The EU confirmed the quota using World Trade Organization safeguard measures, which allows for swift implementation without the lengthy investigations required for anti-dumping measures.
Any vehicles exceeding the quota will be blocked at European ports but won't face tariffs. China's exports to the EU of hybrid vehicles surged to €6.7bn (£5.7bn) in the first half of 2023, up from €2.2bn a year earlier. In return, China agreed to lower tariffs on auto parts and cut duties by half on specific EU goods. The EU's move aims to address the £1bn daily trade deficit with China and mitigate potential industrial deindustrialization concerns.
While China has pledged support for the quota, both sides are continuing discussions on additional imports such as chemicals, renewable energy, and furniture.
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Also reported by 2 other outlets
- EU deal with China limits imports of hybrid electric vehicles theguardian.com
- China’s $7.5 billion EU hybrid boom faces new curbs under deal with EU japantimes.co.jp
