Just a few days after the European Union (EU) and China reached an agreement in principle to limit imports of Chinese hybrid cars into the EU, the specific figures became clear: a representative of the European Commission (EC) announced that an annual limit of 350,000 cars had been set.
The EU fears that Chinese cars, which are cheaper, could crowd out European manufacturers. As a result, in 2024 the EU imposed special tariffs on electric cars from China. Since then, however, China has significantly increased sales of plug-in hybrids in Europe. The EC estimates that number could rise to around 800,000 this year.
In future, European customs authorities will no longer approve hybrid cars from China once the annual cap is reached. It will be 350,000 cars in the first year, then increase by 6 percent each year, and the limit will expire after four years. This is in line with World Trade Organization (WTO) rules. "China has agreed to this," a Brussels official said.
"Important first step"
European Trade Commissioner Maroš Šefčovič and his Chinese counterpart Wang Wentao announced on Friday that an agreement had been reached, but gave no further details. In Beijing, Šefčovič described it as an "important first step" towards restoring the trade balance between the two countries.
Accordingly, China has agreed to reduce tariffs on certain EU products, as well as to “facilitate the issuance of export permits for rare earth elements and permanent magnets destined for the EU“.
Source: www.dw.com