The European Union has asked China to voluntarily cut shipments of hybrid cars to the European market, aiming to reduce their share to about 15%. Financial Times reported this, citing its sources.
Brussels is unhappy that Chinese-made hybrids now account for more than a third of the EU market. According to the newspaper’s sources, European carmakers have been forced into large-scale job cuts as the market is increasingly flooded with lower-priced models from China.
The EU’s import tariff on such vehicles currently stands at 10%. But from October 2024 to July 2026, imports of Chinese hybrids rose tenfold, FT said, climbing from 3.8 thousand vehicles a month to 50 thousand. At the same time, their average prices declined.
One European official told the newspaper that if China does not restrain exports to the EU market on its own, the bloc will do it itself. According to the report, Brussels is trying to prevent a broader trade war.
Beyond cars, the EU has also urged China to “show restraint” in several other product categories, including chemicals. Brussels also wants China to increase its purchases of European export goods.
Financial Times noted that in October 2024, Brussels imposed tariffs of up to 45% on Chinese electric vehicles. China responded with tariffs on exports of cognac, meat and dairy products from the European Union.
Speaking in the European Parliament on September 16, European Commission President Ursula von der Leyen said the trade deficit between the EU and China has reached 1 billion euros a day. In her words, the situation has reached a critical point and can be described as the start of a “second China shock.”
