The EU and China reached a political deal on October 9 to limit hybrid-car imports to 350,000 vehicles a year through a safeguard measure that could enter into force as early as December 1, 2026, ANSA reported from Brussels. The cap applies to the first year, then rises 6 percent per year, and the measures run for four years. The deal was reached during EU Trade Commissioner Maros Sefcovic’s mission to Beijing last week; Sefcovic called it “an important first step,” and the dossier is on the agenda of this Thursday and Friday’s European Council.
The stated rationale is trade defense, not emissions or subsidies: addressing the EU’s trade deficit with China of over 1 billion euros per day and a surge in Chinese car imports arriving on the European market. The previously emerged goal is to halve Chinese exports to the EU over four years. To respect WTO non-discrimination rules, the cap applies to all hybrid imports rather than China alone, though China’s allocated quota will be no lower than any other hybrid-exporting country’s, and both sides committed to respecting WTO rules for the duration.
ANSA also reports that EU-China dialogue will continue on Beijing’s restrictions on rare-earth and permanent-magnet exports. No reaction from China or European automakers was quoted in the article.