European Union to limit imports of Chinese hybrid vehicles as UK urged to follow

Reuters reported that European Trade Commissioner Maros Sefcovic met with Chinese counterparts in Beijing to reach the deal.

He previously said the aim of the talks was the halve the number of hybrid electric vehicle exports to Europe, improve access to China’s market and further ease rare earths export licensing.

The “shared understanding” will reduce the number of exports of hybrids and plug-in hybrids from China to the EU following complaints from legacy manufacturers.

Imports of Chinese vehicles has soared in recent years, with the likes of BYD, Chery, Jaecoo and Omoda becoming incredibly popular.

In the first half of 2026, Chinese brands captured 14 per cent of the total market share for hybrid electric vehicles, up from just two per cent in 2024.

Similarly, Chinese plug-in hybrids recorded just two per cent of total sales two years ago, compared to 25 per cent in H1 of 2026.

Leaders within the European Union will further discuss the proposals later this month, as they also look to rebalance the bloc’s trade deficit with China.

Speaking in Beijing, Mr Sefcovic said: “This is far from the end. It is a crucial first step – but only a first step – in the process of rebalancing.”

The EU and China also agreed on reducing Chinese import duties on €4billion (£3.8billion) worth of EU exports, including car parts.

The European Automobile Manufacturers’ Association (ACEA) welcomed the announcement addressing “critical trade imbalances”.

Director-General Sigrid de Vries said: “A sharp and sudden destabilisation of the market in Europe, along with price wars that mirror the current market situation in China, would be highly disruptive to the European economy as whole.

“Today’s announcement can help facilitate the transition to a new era of Chinese presence in the European market in an orderly way and this is in the long-term interests of all parties.”

The ACEA acknowledged the positive steps being taken to address hybrid sales, but noted that Chinese influence could disrupt the bus and truck markets.

Matthias Schmidt, European autos research analyst, told Reuters that European governments would now be urging the UK to follow suit.

He stated: “The result is this statement from Sefcovic today. Now Berlin is asking London to join them, and Brussels, given the UK accounts for 30 per cent of Western Europe’s Chinese new car sales.”

A Government spokesperson told GB News that trade measures are put in place independently and are based solely on the UK’s economic interests.

However, they acknowledged the close ties between the UK and the EU, as well as the challenges both sides face in the global markets.

“We want to explore deeper cooperation with the EU to unlock opportunities for industry and strengthen economic growth, while avoiding collateral damage in our shared ambition of tackling unfair trading practices globally,” the spokesperson said.