China rejects EU request to cap hybrid car exports ahead of trade chief's Beijing visit
China has rebuffed an EU request to voluntarily limit hybrid vehicle exports to the bloc, per the Financial Times, ahead of EU Trade Commissioner Maros Sefcovic's visit to Beijing. The rejection signals continued friction in EU-China trade relations, with the EU seeking to protect its auto industry from Chinese competition. The outcome of Sefcovic's talks will determine whether the EU escalates with tariffs or other measures.
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EU-China Crunch Talks on Hybrid Car Exports and Trade Deficit
EU Trade Commissioner Maros Sefcovic is engaged in two days of high-stakes talks in Beijing with Chinese officials, including Trade Minister Wang Wentao, to address a bilateral trade deficit of approximately €1 billion per day and the surge in Chinese hybrid car exports. China has reportedly rejected an EU request to voluntarily cap hybrid vehicle exports prior to these talks, indicating continued friction. The outcome remains uncertain, with potential for either a pilot agreement to de-escalate tensions or an escalation to retaliatory tariffs.