Europe caps China's hybrid car exports

The European Union has decided to set a cap on hybrid vehicle imports from China at 350,000 cars annually, starting from 2027 for a period of four years. This cap will gradually increase by 6% each year beginning in the second year. As a result, Chinese imports to the EU are expected to decrease by more than half compared to 2026 levels, which were around 800,000 vehicles. This move is part of an agreement between Brussels and Beijing to avoid trade escalation. The measures aim to protect the European automotive industry from unfair competition and China's reliance on government support. China has affirmed that the agreement is based on its exports of 302,000 cars in 2025, with a mechanism in place to ensure stable growth in exports. Meanwhile, Europeans have welcomed the step as a way to promote fair competition.

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