EU plans restrictions on Chinese hybrid vehicles

The European Union is preparing to impose restrictions on imported hybrid cars manufactured in China with the aim of reducing the trade deficit that exceeds one billion euros daily with Beijing. The measures include protective tariffs that impose additional duties on vehicles exceeding a certain threshold, leading to a surge in the stock prices of European automakers such as Volkswagen, Renault, and Mercedes. The European Commission seeks to strike a balance between protecting domestic producers and avoiding retaliation from China, while negotiations between the two sides on trade and investment continue. Beijing has refused to impose a voluntary cap on hybrid car exports and insists that these restrictions violate World Trade Organization rules.

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