The European Commission has confirmed that the EU will limit the number of hybrid electric vehicles imported from China to 350,000 cars annually. This quota, set to come into force in December, is part of a four-year agreement made in Beijing last week.
Imports of battery and plug-in hybrids from China have seen a significant increase over the past two years, with approximately 800,000 expected to be sold this year. The EU anticipates that the new limit will halve China's current 6% market share.
The annual import limit will be implemented under World Trade Organization safeguard measures, allowing for swift application without the need for anti-dumping investigations. Vehicles assembled by Chinese companies within the EU, such as those in Hungary or Spain, will not be subject to the quota, but EU companies manufacturing cars in China will be.
As part of the agreement, China has also committed to reducing some tariffs on auto parts and halving duties on footwear, olive oil, and ice cream from the EU. Officials stated that China fully supports the quota and that dialogue on other imports, including chemicals, renewable energy, and furniture, will continue.