EU to begin talks in China on limiting hybrid imports — The Guardian

Representatives of the European Union are heading to China for two days of trade talks in an attempt to reach an agreement on limiting supplies of cheap hybrid cars to the European market. European Commissioner for Trade Maroš Šefčovič and his team are due to fly out on Wednesday, with talks scheduled from Thursday until late Friday evening, The Guardian reports.

A pilot agreement for the automotive industry

According to the publication, the sides seek to achieve a tangible, substantive and measurable result before the meeting of EU leaders in Brussels next week, where China will be one of the key topics. The basis for a possible agreement could be a pilot deal for one sector — expected to be automobiles. This approach could later be extended to other industries.

Diplomatic efforts to prevent a large-scale trade war began in late June. Last month, the EU asked China to voluntarily limit exports of hybrid cars because of the rapid growth in their sales. Brussels warned that, without such restrictions, it could introduce safeguard measures, including quotas.

More current news is available on the UA.News Telegram channel Telegram.

Tougher requirements in the EU

In October 2024, the EU imposed duties on Chinese electric vehicles, but hybrid cars were not covered by these tariffs. After that, hybrid exports increased. As The Guardian notes, EU member states have strengthened demands to protect their own industries from Chinese imports.

German Chancellor Friedrich Merz on Monday supported French President Emmanuel Macron's position on a new trade defence instrument. According to the publication, it could allow the EU to swiftly restrict access to the single market. A joint Franco-German document mentions a “large-scale industrial shock” affecting pharmaceuticals, aerospace, automobile manufacturing, machine-tool manufacturing and the chemical industry.

Former EU adviser on China Andrew Small said that Šefčovič's talks would test the resolve of both Beijing and Brussels. He warned that China may offer concessions sufficient to delay EU action, but without resolving the problems that, he said, contribute to Europe's deindustrialisation.