“EU limits imports of Chinese hybrid vehicles to 350,000 units per year” (comprehensive)

(Seoul, Shanghai = Yonhap News) Reporter Seol Won-tae and Correspondent Cha Byeong-seop = Bloomberg News reported on the 11th (local time) that the European Union (EU) plans to implement safeguard measures limiting imports of Chinese hybrid cars to 350,000 units per year on December 1.

Bloomberg reported that it had secured a document outlining the safeguard action plan.

According to the document, 350,000 units will be applied in the first year of application of the cap, and thereafter the cap will increase by 6% every year. This measure will apply for four years.

Bloomberg reported that both sides will apply a cap on imports of all hybrid vehicles, not just Chinese ones, to comply with the WTO's non-discrimination principle. Additionally, China's ceiling was not lower than the ceiling applied to any other importing country.

This agreement applies to both hybrid vehicles (HEV) and plug-in hybrid vehicles (PHEV). Additionally, this agreement covers vehicles from all origins imported into the EU, including countries with which the EU has a free trade agreement (FTA).

Previously, Chinese Commerce Minister Wang Wentao and EU Trade and Economic Security Commissioner Maros Ševčovic held the '2nd China-EU Economic and Trade Consultations' in Beijing for two days starting on the 8th and issued a joint statement on the 9th.

According to the joint statement, the two sides reached an understanding on hybrid vehicle trade in a manner consistent with WTO norms.

“We have reached a common understanding to regulate exports of Chinese hybrid and plug-in hybrid vehicles to the EU. This opens the possibility of reducing Chinese exports by more than half,” Commissioner Ševčovic said at a press conference.

He added that China has decided to reduce tariffs on some products, including EU auto parts and olive oil, which will save at least 225 million euros (about 338 billion won).

Regarding the contents of the discussions with the EU, a spokesperson for China's Ministry of Commerce said in a Q&A format with reporters on the 12th, "The two sides negotiated intensively on trade in hybrid and electric vehicles. Differences in the economic and trade fields and mutual interests were handled in a balanced manner."

He then said, based on EU statistics, that the EU's import volume of Chinese hybrid cars was 107,000 units in 2024 and 302,000 units last year, and that "both sides agreed to adjust the figures upward based on 2025."

Through this, the company secured export space and stable growth for Chinese companies, and also took into account reasonable concerns based on the realities of both industries.

He also said that the two sides agreed on the principle of non-discrimination, and said, "No measures should only target Chinese products, and even less should they treat Chinese companies discriminatoryly. The quota secured by China will not be less than that of any other import origin in the EU."

Regarding electric vehicles, he said, "The two sides made a 'soft landing' on the countervailing duty issue in January of this year," and mentioned that the EU had announced guidelines related to price agreements.