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EU Prepares Import Caps After China Rejects Hybrid Export Limits

China's refusal to curb hybrid car shipments has pushed Brussels to plan quotas or temporary tariffs and sends the issue to EU leaders for a mid‑October decision.

Overview

  • During two-day talks in Beijing on Oct. 8–9, EU trade commissioner Maroš Šefčovič pressed China for voluntary limits on hybrid and plug-in hybrid exports and Chinese officials declined to agree.
  • The European Commission is now weighing unilateral safeguard tools that would mix import quotas, tariff‑rate quotas, or temporary safeguard tariffs to limit shipments that exceed set thresholds.
  • France and Germany have urged faster and broader EU powers to act, and the European Parliament voted strongly for tougher reciprocity rules that would make quick Commission action easier.
  • Beijing has already shown it will respond to restrictions by opening an anti-dumping probe into EU exports of p-nitrotoluene and could restrict supplies of key inputs such as rare earths.
  • Europe faces a roughly €360 billion goods deficit with China that is straining factories and jobs, and EU leaders will review next steps at the summit on Oct. 15–16 where political unity and legal limits will shape any new measures.