China rejects EU request for voluntary hybrid car export curbs, FT reports
The Commission is considering temporary safeguard tariffs that would let a quota of Chinese hybrids enter on standard terms, with higher duties above it.
- China refused an European Union request to voluntarily limit hybrid car exports to about 15% of the bloc's market, rejecting Brussels' proposal as negotiations intensify.
- EU imports of Chinese-made HEVs climbed from 23,711 units in May to 32,797 in July, while their monthly value rose from €335.6 million to €489.4 million, according to Eurostat.
- European Commission officials are weighing temporary safeguard tariffs that do not require proof of unfair trade practices, with a set quota of Chinese hybrids entering at standard terms and steep extra duties on excess shipments.
- Brussels views the hybrid curbs as a test case that could extend to other sectors with large trade imbalances, with EU leaders set to discuss the strategy at the European Council summit on October 15 and 16.
- Chinese Foreign Ministry spokesperson Guo Jiakun said on September 18 that "we hope the EU will honor its commitments to market openness and free trade," as negotiations echo Japan's voluntary export restraints from the 1990s.
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103 Articles
Kronen Zeitung
The EU limits imports of Chinese hybrid cars to 350,000 units per year, according to an EU official in Brussels on Monday. "This will reduce current imports into the EU by more than half," he continued.
The EU prepares a quota of 350,000 Chinese hybrids in the first year, according to Bloomberg. It could start on December 1st and increase by 6% annually from the second.
The measure will be implemented for four years, with an annual increase of 6% from the second, as advanced by Bloomberg. These limitations will also affect countries with which the bloc has a free trade agreement.
The European Union will limit imports of Chinese hybrid vehicles to 350,000 cars per year, with a safeguard measure that could come into force as early as 1 December. (ANSA)
Before the Brussels summit, details seep through on how China and the EU could resolve a trade conflict. Experts argue with the idea of reconciling export quotas and minimum prices. Compensatory tariffs are the better option against unfair competition.
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