The EU asks China to limit hybrid car exports to avoid a trade war and the deindustrialization of Europe

The European Union has asked China to voluntarily limit its exports of hybrid cars to the EU market, in an attempt to prevent a trade war and protect European industry. According to the Financial Times, Brussels would like Chinese hybrid cars to account for approximately 15% of the EU market.

The request is part of a broader package of measures discussed between Brussels and Beijing. The EU is also asking China to restrict exports of certain products, including various chemicals, and to purchase more European goods.

A European official warned that, in the absence of voluntary limits, the bloc could introduce its own restrictions. According to the official, the measures are aimed at stopping deindustrialization and managing trade imbalances.

European Commission President Ursula von der Leyen stated that the EU will use all available tools to reduce the trade deficit with China. It reached 360.6 billion euros last year and increased by 9% in the first six months of the year. Brussels accuses China's excess production capacity of fueling exports of batteries, cars, and chemicals. Beijing rejects the accusations and considers European criticism to be protectionist measures.