EU restricts imports of hybrid cars, caps on Chinese-made cars, halving number of cars

[Brussels, Beijing Current Affairs] The European Union (EU) announced on the 12th that it will introduce safeguards (emergency import restrictions) for hybrid vehicles (HVs) and plug-in hybrid vehicles (PHVs) in order to correct the trade imbalance with China. The Chinese government also announced the details of the agreement, which is a plan to halve the number of imported cars. Temporary measures will be implemented in early December. Vehicles imported from countries other than China are also eligible.

The EU and China held ministerial trade talks in Beijing last week and reached a common understanding on HV and PHV trade. European Commissioner for Trade and Economic Security Šefčović announced after the talks that they had agreed to "curb exports" of hybrid vehicles and other products. In reality, the EU will restrict imports and indirectly curb China's exports.

According to the European Commission, the import quota for China will be set at 350,000 units per year in the first year, and will increase by 6% every year thereafter. The period is four years, and once the limit is reached, customs clearance will not be permitted. Restrictions will be determined based on the country of origin, and vehicles manufactured in the EU by Chinese manufacturers will be excluded. It is expected that country-specific quotas will be set up for third countries such as Japan, but a senior European Commission official explained, ``It will be at a level that does not hinder each country's traditional exports.''