Hybrid vehicles: EU urges China to self-limit imports
The EU is currently relying on China to voluntarily limit hybrid vehicle imports, but may change course. The EU seeks a commitment from Beijing to cap Chinese-made hybrids at around 15% of the EU market, where they currently hold over a third. Imports of Chinese hybrids reached a record high in the second quarter, with sales rising from 3,800 vehicles in October 2024 to 50,000 in July.
Why it matters: This matters for the theme of trade, as the EU is shifting from voluntary restraint to potential tariffs on Chinese hybrids.