EU Trade Chief Opens Beijing Talks as Bloc Mulls Curbs on Chinese Hybrid Cars

Why it matters

EU Trade Commissioner Maroš Šefčovič arrived in Beijing on Wednesday for two days of talks with China's commerce minister Wang Wentao, as the EU's daily trade deficit with China hit a record one billion euros and an October deadline for progress draws near.

In June, the European Commission opened negotiations aimed at tackling Chinese export practices it calls trade-distorting, setting October as the target for Beijing to deliver tangible outcomes. Brussels is pushing for quotas tailored to specific Chinese product categories, but has not yet convinced Beijing to restrain exports — a recent Chinese move rejected the EU's plan for voluntary limits on electric vehicle shipments.

On the eve of the talks, Bloomberg reported that the Commission is preparing safeguard measures to limit imports of Chinese hybrid cars — a change in tone after Beijing refused a voluntary cap in September. Every fourth hybrid sold in Europe now comes from a Chinese factory, often at a lower price than European rivals, while imports of Chinese electric cars have grown more slowly.

Safeguards act as an emergency brake under WTO rules, allowing a country to curb imports when a sudden surge seriously harms domestic producers. Such measures normally apply to imports from every country, so other exporters could be caught too. Asked about the report on Wednesday, a Commission spokesperson would not say whether hybrids would come up in Beijing.

The pressure is political as well as economic: on Monday, German Chancellor Friedrich Merz and French President Emmanuel Macron advocated a fresh instrument letting the Commission respond swiftly to economic threats — including steps that could mean immediate exclusion from the internal market. EU leaders, all of whose nations now run trade shortfalls with China, want Šefčovič to return with solid achievements before their Brussels summit next week.