There will be fewer Chinese hybrids in the EU. Brussels reached an agreement with Beijing

Brussels wants to reduce the huge trade deficit with China, which exceeds one billion euros a day. EU leaders obliged the European Commission to present the concrete results of the dialogue with Beijing at the October EU summit.

The pressure to tighten the policy towards China has also been increased by France and Germany, which a few days ago proposed extraordinary trade instruments that allow countries using unfair practices to limit access to the EU market.

"We are talking about reducing Chinese exports to the European Union by several million cars within four years. This, in my opinion, is a very significant change," emphasized Šefčovič.

The reason is a sharp increase in imports. Over 12 months, imports of Chinese plug-in hybrids, i.e. cars that can be charged from a socket, increased by 86 percent. Their prices dropped by 20 percent during this time. And more than half of plug-in hybrids currently imported into the European Union come from China.

However, Šefčovič did not reveal how exactly the mechanism limiting imports would work. Asked how he planned to limit the sale of Chinese cars if European consumers wanted to buy them, he replied that the details would be presented after obtaining the consent of EU leaders.

The Commissioner emphasized that the agreement was met with a positive reaction from ACEA, the European Automobile Manufacturers Association. He argued that the European automotive industry is under great pressure, and the rapid increase in Chinese exports may threaten entire industrial sectors and thousands of jobs.

There are also other effects of the agreement. China is to facilitate licensing procedures for the export of rare earth metals and permanent magnets, essential for European industry. In turn, EU exporters will benefit from export facilitations, which will include, among others, car parts, olive oil and footwear. According to Šefčovič, the export value of these products reaches almost EUR 4 billion, and the potential customs savings will amount to at least EUR 225 million.

However, the agreement does not end the trade dispute with Beijing. Šefčovič described it as the beginning of the process of restoring balance in economic relations. The next contact with the Chinese Minister of Commerce is scheduled for January, and the next trade consultations are scheduled to take place in March 2027.

The Commissioner also warns that if the current dialogue does not produce results, the European Union will use available trade defense instruments.