The European Commission has confirmed it will limit hybrid electric vehicle imports from China to 350,000 cars per year. The quota will come into force in December under World Trade Organization safeguard measures, allowing swift implementation. Any vehicles imported above this level will be blocked at European docks, though they will not face additional tariffs. The deal was agreed in Beijing last week.
Current Chinese hybrid vehicle imports have surged to around 800,000 battery and plug-in hybrids expected to be sold this year. The new quota will halve China's market share from its current 6% to 3%. Chinese vehicles assembled within the EU, such as those produced in Hungary or future Spanish facilities, will not be subject to the quota, though EU companies manufacturing cars in China will be.
As part of the broader agreement, China has agreed to drop some tariffs on auto parts and cut duties by half on footwear, olive oil and ice-cream from the EU. Officials confirmed the quota has China's full support, with further dialogue continuing on cars and other imports including chemicals, renewable energy and furniture.
The deal comes as the EU faces a trade deficit of around 1 billion pounds daily with China. Officials described a shift in strategy away from seeking increased exports towards curbing imports, citing concerns over deindustrialisation and job losses in industrial regions.