EU Plans Annual 350,000 Import Cap on Chinese Hybrids Following Bilateral Agreement

The European Union plans to enforce an annual cap of 350,000 imported Chinese hybrid vehicles starting December 1 under WTO-compliant safeguards. The quota, designed to rise 6% annually from year two over a four-year period, follows a 16-point trade consensus reached in Beijing. The measure aims to curb Chinese hybrid sales, which reached about 25% of European hybrid registrations in August, while addressing a bilateral trade deficit exceeding €1 billion per day. Earlier, Brussels had reached a preliminary deal to limit hybrid vehicle exports and streamline rare earth licensing amid warnings of stronger defense tools.