EU is preparing to impose import limits on Chinese hybrid cars

According to sources, the European Commission, which is responsible for the EU's trade issues, may impose these restrictions after the sales of Chinese hybrid vehicles have increased rapidly in Europe. While these vehicles now account for a quarter of total sales, growth in imports of electric vehicles originating from China, which currently faces high EU customs duties, has slowed.

Safeguard measures allow the EU to restrict products in certain sectors in case of a sudden increase in imports to the union. One way the Commission could implement this is through the use of tariff quotas, which impose duties on imports above a certain volume. According to sources, the limitation proposed by the EU will be temporary.

According to sources, the Commission plans to use hybrid vehicles as a test case. If the initiative is successful, similar practices can be implemented in other sectors where the EU sees trade imbalances.

According to sources, EU trade chief Maros Sefcovic will go to Beijing to meet with Chinese Trade Minister Wang Wentao later this week, and there may be changes in the EU's plans depending on the course of the talks.

One of the EU's main goals will be to keep the cap on hybrid vehicles low enough to avoid retaliation from Beijing, the sources said.