ALBAWABA - EU and China agreed on Monday to limit Chinese hybrid cars imports to 350,000 a year in order to avoid a trade war, according to a senior EU official.
The EU will institute its safeguard measure, allowing it to limit imports of a certain product to Europe; the cap will be in effect from 2027 for a period of four years, and will rise by six percent annually from the second year.
"This will cut by more than half the current exports to the EU, which we estimate are likely to reach up to 800,000 units in 2026," the official said.
Hybrid vehicles are especially popular among consumers in Europe with Chinese makers having profited from their lower-price models to gain huge market shares at the expense of European producers.
The EU, in an attempt to protect domestic producers, set hefty additional tariffs on Chinese electric cars in 2024, alleging they benefit from unfair state subsidies.
#IGR: China, EU strike deal to halve Chinese hybrid car exports over four years
China and the European Union have reached a preliminary agreement that could cut Chinese hybrid and plug-in hybrid car exports to Europe by more than half over four years. The deal comes as European automakers face growing competition from Chinese imports.
In return, China has agreed to work on reducing import duties on around €4 billion worth of European goods and easing export licences for rare earths and permanent magnets. The agreement is an initial step towards easing trade tensions and addressing the EU’s growing trade deficit with China.
French President Emmanuel Macron welcomed the Brussels-Beijing deal, saying that it would "better protect the European market against unfair competition".
"It's the result of years of work where we have sought to re-establish a fair and honest competition between Europeans and non-Europeans," Macron said while visiting the Paris Auto Show ahead of its opening on Tuesday.
Pshemaf Choiaqo is a digital marketer with a passion for media, style, and presentation.
He enjoys researching unorthodox and nonconventional subjects almost as much as he enjoys writing about them.
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