China has rejected an EU request to voluntarily restrict its surging exports of hybrid cars to the bloc as the two sides enter last-ditch talks to avert a trade conflict. The European Commission now hoped to get Beijing to accept a unilateral EU measure to cap hybrid imports instead. European trade commissioner Maroš Šefčovič starts two days of talks in Beijing and wants to agree at least one measure to reduce China's ballooning trade surplus with the EU rather than launch punitive measures that could spark a retaliatory spiral.
His original pitch was that Beijing agree to limit hybrid vehicle exports to the EU to about 15 per cent of the EU market compared with more than a third today or face retaliatory action such as tariffs. However, EU officials told member states on Wednesday that China had refused. Now the Commission is discussing a temporary 'safeguard' trade defence measure, which could be applied even without evidence of market abuse.
Source: Financial Times Companies · Summarized by HeadlinesBriefing