EU's 350,000-unit hybrid cap aims to halve China's market share over four years

China agrees to lower tariffs on roughly four billion euros of EU goods

The European Union will cap hybrid-vehicle imports from China at 350,000 units annually under a measure that could take effect in early December, a senior EU official said Monday. Under the plans, the EU will seek to curb Chinese hybrid and plug-in hybrid imports over the next four years, with the aim of halving China’s market share in the bloc.

The cap will also include a fixed annual increase of 6%, the official said, which is meant to cut China’s hybrid exports to the EU by more than half.

The EU’s top trade negotiator, Maros Sefcovic, traveled to Beijing earlier this month for talks with Chinese Commerce Minister Wang Wentao. European officials are seeking to rebalance the 27-member bloc’s relationship with China over concerns of a surge in cheaper imports from the country, the official said. The bloc’s trade deficit with China reached 360 billion euros last year, equivalent to roughly $403.3 billion.

The senior official also said China agreed to lower tariffs on roughly 4 billion euros of EU goods shipped to China, including auto parts, footwear, ice cream and olive oil.