EU prepares cap on Chinese hybrid car imports

The European Union is preparing a temporary cap on imports of Chinese hybrid cars, according to Bloomberg. The move is meant to protect Europe’s car industry.
The EU may use safeguard measures, such as tariff-rate quotas. These would limit how many Chinese hybrids can enter the EU at low tariffs.
Chinese hybrids now make up about a quarter of EU hybrid sales. European carmakers say they cannot compete with lower-priced imports.
The measure would be time-limited. But officials see it as a test case. Similar steps could follow in other sectors.
Shares of European carmakers rose on the news. Volkswagen gained 4.6%, Renault rose 6.1%, and Mercedes added 2%.
EU trade chief Maros Sefcovic is due to visit Beijing. The car issue will likely be high on the agenda.
The plan adds to growing trade tension between Brussels and Beijing. China has already hit back at EU tariffs on electric cars.
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