New Restrictions on Chinese Cars in the European Market

The European Union (EU) is preparing to introduce an annual quota of 350,000 hybrid vehicle imports to ease trade tensions and protect its domestic automotive industry. According to Bloomberg, the measure is expected to take effect on December 1. The quota will be capped at 350,000 vehicles in the first year, with plans to increase it by 6% annually from the second year onward. The measure is expected to remain in place for four years.

In line with World Trade Organization principles, the restriction will cover all hybrid vehicle imports into the EU. EU Trade Commissioner Maroš Šefčovič met with China’s Commerce Minister Wang Wentao in Beijing to discuss reducing the trade deficit and protecting European industry.

Under the agreement, China is expected to abolish tariffs on certain automotive parts and halve tariffs on footwear, ice cream and olive oil. The parties will also discuss rare earth element supplies and simplifying export controls.

In August, Chinese-made vehicles accounted for approximately 25% of hybrid vehicle sales in Europe.