Hybrid cars, agreement between China and the EU on export limits: what changes from 1 December

After the introduction of EU duties on 100% Chinese electric cars (which occurred in 2024), Asian manufacturers had strongly turned to hybrid models, whose exports to Europe had tripled in the first half of the year.

The European Union will limit imports of Chinese hybrid vehicles to 350,000 cars a year, with a safeguard measure likely to come into force as early as December 1. The limit will apply to the first year of validity of the measure, and then increase by 6% per year starting from the second year. According to Bloomberg, the measures will remain in force for four years, during which both parties will undertake to respect the rules of the World Trade Organization (WTO). The agreement was created to fill a regulatory gap: after the introduction of EU duties on 100% Chinese electric cars (which occurred in 2024), Asian manufacturers had strongly veered towards hybrid models, whose exports to Europe had tripled in the first half of the year.

Safeguard measures allow the EU to limit imports of products from a certain sector when there is a surge in arrivals on the European market. According to the document, the cap will apply to all imports of hybrid vehicles, not just those from China, to respect the principle of non-discrimination provided for by WTO rules. The quota allocated to China will not be less than that provided for any other country exporting hybrid vehicles. The agreement on hybrid cars was reached during the mission of the European Trade Commissioner, Maros Sefcovic, to Beijing last week. Talks with the Chinese Minister of Commerce, Wang Wentao, made it possible to break the deadlock to avoid an open trade war.

The objective, it emerged, is to halve Chinese exports to the EU over four years. The commissioner had spoken of an "important first step". The dossier will be among the topics of the European Council on Thursday and Friday, while the dialogue between Brussels and Beijing will also continue on Chinese restrictions on exports of rare earths and permanent magnets. The agreement will make it possible to "better protect the European market from unfair competition", said French President Emmanuel Macron, at the opening of the Paris Motor Show (Mondial de l'Auto 2026). The agreement, announced on Friday by EU Trade Commissioner Maros Sefcovic, "is the result of work lasting several years, during which we wanted to re-establish fair and fair competition between Europeans and non-Europeans", added Macron.