China Rejects EU’s Request to Voluntarily Limit Hybrid Car Exports
China has rejected the European Union’s request to voluntarily limit its exports of hybrid vehicles to the European market, according to the Financial Times. This refusal comes at a critical juncture as Brussels and Beijing urgently seek to prevent a new commercial escalation centered on the automotive sector and the imbalance in trade flows.
Negotiations in Beijing
The issue is now at the heart of the trade negotiations being conducted in Beijing by Maroš Šefčovič, the European Commissioner for Trade. Brussels is seeking concrete commitments from China to alleviate the pressure exerted by Chinese imports on the European industry.
Specifically, the European request involved capping sales of Chinese hybrid vehicles at approximately 15% of the European market. The stakes have become more sensitive since the European countervailing duties on Chinese electric vehicles, applied from October 2024, contributed to shifting part of the commercial dynamic toward hybrid vehicles, which were not covered by those measures.
Beijing had already publicly rejected the principle of voluntary export limitations. In September, the Chinese Ministry of Commerce stated that such restrictions would be contrary to World Trade Organization (WTO) rules and competition principles. It called on the EU to respect market openness and create a fair environment for foreign companies.
Broader Trade Imbalance
For Brussels, the problem now extends beyond the automotive sector alone. The EU is seeking to reduce its trade deficit with China, which reached €360.6 billion in 2025, according to data cited by Reuters. The European Commission believes that the increase in Chinese exports across several sectors—including vehicles, batteries, and chemicals—is fueling new pressure on European industry.
Potential Unilateral Measures
In response to China’s refusal, the European Commission is now considering a unilateral European mechanism to cap imports of Chinese hybrid vehicles, potentially through a safeguard measure. According to the Financial Times, Brussels would aim to maintain imports at around 15% of the European market, compared to more than one-third currently.
Strategic Implications for Automakers
This matter is strategic for manufacturers on both sides:
- For Chinese groups: Europe remains a major market at a time when they are seeking to accelerate their internationalization.
- For European manufacturers: The rise of Chinese brands is intensifying pressure on prices, market share, and industrial capacities.
