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Vehicles destined for export parked at Dongdu Port in Xiamen, Fujian Province, China, on January 23, 2024. / Xinhua, Yonhap

The European Union is set to implement safeguard measures capping imports of Chinese-made hybrid vehicles at 350,000 units annually starting December 1, Bloomberg News reported on the 11th (local time).

According to a draft document outlining the plan obtained by Bloomberg, the import quota for the first year will be set at 350,000 units, increasing by 6% each year beginning in the second year.

The measure will remain in place for four years, during which both the EU and China are expected to commit to complying with World Trade Organization (WTO) rules.

Safeguard measures are mechanisms allowing the EU to restrict imports of specific products when an unexpected surge in shipments threatens domestic industries.

The EU has been striving to narrow a bilateral trade deficit that exceeds 1 billion euros (approximately 1.5 trillion won) per day.

Maroš Šefčovič, the EU Commissioner for Trade and Economic Security, held talks with Chinese Commerce Minister Wang Wentao during the second China-EU Economic and Trade Dialogue held in Beijing from the 8th to the 9th.

During the meeting, both sides issued a joint statement outlining their consensus on hybrid vehicle trade, predicated on adherence to WTO principles.

To comply with the WTO’s non-discrimination rules, the EU's import cap will apply not only to Chinese-manufactured hybrid vehicles, but to those produced across all exporting countries.

The specific import quota applied to Chinese-made hybrid cars will be set on par with shipment volumes allowed from other exporting nations.

EU leaders are scheduled to convene in Brussels, Belgium, on the 15th to address the hybrid car dispute, alongside broader measures aimed at preventing subsidized, low-cost Chinese goods from flooding the European market and squeezing domestic industries.

                                                                                                             Kim Hyun-min