China has made clear that it opposes the European Union’s push for Beijing to voluntarily curb hybrid vehicle exports. Beijing also signaled that it intends to continue actively responding to demand in global markets.

		0
Chinese-made hybrid vehicles unloaded at a port in Shanghai, China’s financial hub. The vehicles are facing growing scrutiny from EU countries. / The Beijing News

A spokesperson for China’s Ministry of Commerce said in a statement posted on the ministry’s website in a question-and-answer format on Sept. 18 that the proposed “voluntary export restraint” would seriously violate World Trade Organization rules.

“It runs counter to the laws of the market economy and the principle of fair competition,” the spokesperson said. “China firmly opposes it.”

“China’s position has been consistent,” the spokesperson added. “Any solution between China and the EU must ensure a balance of interests, comply with WTO rules and the domestic laws of both sides, and fully take into account the interests of industries on both sides.”

Earlier, the Financial Times reported that the EU had proposed that China voluntarily restrict exports of hybrid vehicles, effectively signaling concerns over the competitiveness of Chinese models.

Chinese hybrid vehicles currently account for more than one-third of sales in the EU market. The EU is reportedly seeking to reduce their market share to 15%.

China, however, is unlikely to accept the demand. If it refuses, the EU could move to directly restrict imports through measures such as higher tariffs.

In October 2024, the EU imposed tariffs of up to 45% on Chinese electric vehicles, citing subsidies that it said distorted market competition. Imports of Chinese hybrid vehicles, which remained subject only to the standard 10% tariff, surged afterward.

Chinese hybrid vehicle imports into the EU jumped more than tenfold, from 3,800 units in October 2024 to 50,000 units in July this year. Without additional restrictions, imports are expected to continue rising sharply.

                                                                                                           Hong Soon-do