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[BUSINESS] · China, EU · 8 sources

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European Union seeks voluntary Chinese hybrid vehicle export limits

The European Union has requested that China voluntarily limit its exports of hybrid vehicles to approximately 15% of the EU market. This move aims to prevent a full-scale trade war and combat industrial decline within Europe, as Chinese hybrid imports have surged significantly, reaching 50,000 units in a single month in the summer of 2026 compared to under 4,000 in late 2024.

EU officials warned that if China does not agree to these voluntary restrictions, the bloc may implement its own measures. Beyond the automotive sector, the EU has also proposed restrictions on other Chinese exports, such as chemicals, while simultaneously calling for increased Chinese imports of European goods to address trade imbalances.

European Commission President Ursula von der Leyen noted that the EU's trade deficit with China reached 360.6 billion euros last year and grew by 9% in the first half of 2026, describing the situation as a critical turning point. China has rejected allegations of overcapacity, characterizing the EU's stance as protectionist. Trade Commissioner Maroš Šefčovič is expected to visit China in early October to pursue tangible results regarding these trade tensions.

Entities

China · European Commission · European Union · Financial Times · Maros Šefčovič · Ursula von der Leyen

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