Chinaupdated 1h ago3 min read
China Offers EU Dialogue After Beijing Limits Hybrid Vehicle Exports And Cuts Tariffs
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China willing to maintain dialogue with EU to stabilize trade relations. EU and China agreed to temporarily cap Chinese hybrid car imports.
7 outlets told this the same way.
Beijing seeks stability
Vice Premier He Lifeng told French presidential adviser Emmanuel Bonne that China is willing to maintain dialogue with the European Union to provide greater stability to economic and trade relations. He Lifeng conveyed the message to Emmanuel Bonne during a meeting held the day before at the Great Hall of the People, where they discussed bilateral cooperation and trade relations between Beijing and Brussels. Emmanuel Bonne told China’s Foreign Minister Wang Yi that Europe does not want a trade war with China nor seeks economic decoupling, and Bonne said, "The development of Europe needs China," according to the version released by the Chinese Ministry of Foreign Affairs.
The contacts came after an agreement reached last week between Beijing and Brussels that foresees limiting Chinese exports of hybrid vehicles to the bloc, facilitating European access to rare earths, and reducing tariffs on certain European products. European Commissioner for Trade Maros Sefcovic said the terms of the agreement would be submitted for examination by EU leaders at the European Council on 15 and 16 October.
Hybrid caps and EU tools
The European Commission is preparing measures to limit the entry of hybrid cars manufactured in China, using safeguard measures designed to curb a sudden rise in imports in a specific sector. The European Commission is also preparing special taxes, while Pure electric vehicles manufactured in China pay extra duties since 2024, but hybrids do not have an equivalent surcharge. The European Union and China reached a surprise deal in Beijing last week that will cap the number of Chinese hybrid cars imported to the bloc at 350,000 per year, and EU leaders of the 27 member states will instruct Brussels to "urgently" come up with new weapons to counter the imbalances they believe are caused by China’s economic policies.
The European Commission plan described tariff quotas as an option, with a fixed number of cars entering under current conditions and everything that exceeds that quota paying an additional tariff. The European Commission and other EU trade measures are framed against a backdrop of imports of Chinese hybrids into the European Union rising from 3,800 units in October 2024 to 50,000 in July 2026.
Trade defense and health tech
Germany’s caution toward Beijing is changing after German Chancellor Friedrich Merz and French President Emmanuel Macron sent a joint letter to the European Commission president Ursula von der Leyen requesting a new instrument to exclude a trading partner from the EU single market if unfair practices persist. The Chinese Ministry of Commerce warned that Europe "would suffer the consequences" if it adopted such a plan, while Noah Barkin of the Rhodium Group told DW that threats to Germany’s export powerhouse convinced Merz and his closest advisers that the benefits of acting outweigh the costs of not doing so. The European Union and China also strengthened ties in the purchase and sale of health technology, with China’s Minister of Commerce Wang Wentao and EU Commissioner Maroš Šefčovič holding the second meeting of the EU-China Trade and Investment Consultations.
Both sides committed to keeping dialogue open regarding access to the health technology market and addressed cross-border trade in medical devices and regulation relating to medicines. The EU and China also aligned positions on trade of hybrid vehicles and agreed to exchange methodologies and innovations for disease control, including jointly exploring restrictions on products from animals affected by bluetongue disease.