EU trade negotiators are heading to China for a two‑day summit aimed at curbing the Chinese export of cheap hybrid electric cars that has contributed to Beijing’s record £1 billion‑a‑day trade surplus by curbing its exports of cheap hybrid electric cars into Europe.
Trade Commissioner Maroš Šefčović and his team will depart on Wednesday and engage in intensive talks that are expected to continue late into Friday. The negotiators hope to secure tangible, measurable results before the EU leaders’ meeting in Brussels next Thursday, where China will be a key agenda item.
The focus of the talks is a proposed “proof of concept” pilot agreement that would involve the automotive sector and could be expanded to other industries. The EU has already requested that China voluntarily restrict hybrid exports after the EU imposed tariffs on Chinese electric vehicles in October 2024, which led to a surge in hybrid car shipments.
German Chancellor Friedrich Merz and French President Emmanuel Macron have recently agreed to empower EU leaders to use trade‑defence tools, including a new “kill switch” instrument, to counter unfair competition. The Franco‑German proposal reflects frustration over the limited use of the existing anti‑coercion instrument, which can take up to a year to implement.
Former EU adviser Andrew Small warned that the negotiations will test both Beijing’s willingness to make serious concessions and Brussels’ resolve to protect its industries from what he describes as a “process trap” that could delay decisive action.
