Summary · why it matters
The European Union has called on China to voluntarily limit its exports of hybrid vehicles to the European market, seeking to cap the share at around 15% to prevent the dispute between the two sides from escalating into a trade war. The Financial Times reported, citing sources, on Nov 17 that an EU official said that if China does not restrict its exports, the EU will take measures itself to prevent Europe's industrial manufacturing base from shrinking. In addition, the EU has asked China to limit exports of other goods such as chemicals, and has called on China to increase imports of goods from Europe. Ursula von der Leyen, President of the European Commission, told the European Parliament on Wednesday, Sept 16 that the EU will take every measure available to address its trade deficit with China, which she views as unsustainable, stating that the goods trade deficit between the EU and China stood at 360.6 billion euros, or 413.4 billion dollars, in 2025 and rose another 9% in the first six months of this year. EU Trade Commissioner Maros Sefcovic, who is responsible for negotiations with China, said he wants to see concrete results by October and expects to visit China early next month. The EU says the rise in Chinese exports, including chemicals, batteries and cars, is driven by overcapacity, while the Chinese government rejects such criticism, saying Europe's concerns about economic imbalances and overcapacity are trade protectionist measures aimed at containing China.
