Beijing has pushed back against a European proposal under which Chinese carmakers would cap hybrid shipments to the bloc, with the commerce ministry saying such so-called voluntary arrangements "seriously violate WTO rules" and conflict with market principles and fair competition. The statement, posted Friday, was a response to reports that Brussels is threatening steeper tariffs unless China reins in shipments.
According to the Financial Times, the EU wants a negotiated deal to slow the inflow of Chinese hybrids, warning that inaction could hasten deindustrialization. The numbers explain the alarm: the bloc imported just 3,800 hybrids from China in October 2024 but 50,000 by July 2026, with average prices falling along the way. China-made BEVs already face combined duties of up to roughly 45%, while hybrids currently carry only a 10% tariff.
Brussels reportedly believes a managed export arrangement could nudge Chinese manufacturers toward building in Europe or partnering with local firms. The standoff lands at a delicate moment for Beijing: August vehicle exports jumped 65.3% year-on-year to 1.01 million units, with NEVs accounting for more than half of that total, while domestic NEV sales slipped 4.6% — making overseas demand ever more critical to the industry's growth.