The Straits Times of Singapore, in an article published on September 17, reported: "European media outlets have cited claims that the European Union has urged China to 'voluntarily' reduce exports of hybrid electric vehicles to Europe, or else Chinese products could face higher tariffs in the region."
At its core, this move reflects the EU’s shift to a new strategy after failing to block Chinese electric vehicles through tariff measures—now targeting another segment of the market.
The EU has reportedly asked China to limit its hybrid vehicle market share in Europe to around 15 percent, a level already surpassed, as current figures exceed one-third. A senior EU official stated plainly: "If they do not restrict their exports to our market, we will take action. This is about preventing deindustrialization."
The term 'voluntary' in international trade contexts rarely signifies genuine choice. It functions more as a diplomatically framed ultimatum: you may step back with dignity, or be forced out without it. This approach is not novel—back in 1986, Japan agreed under pressure to limit auto exports to Europe, a restriction that lasted until 1999. The EU now appears intent on replicating that model with China.
The EU’s initial attempt to exclude Chinese pure electric vehicles via tariffs inadvertently pushed Chinese manufacturers into the broader hybrid vehicle segment. Rather than reassessing why the original barrier failed, the EU is now rushing to close another door.
The EU has presented China with a binary choice: reduce exports voluntarily, or face increased tariffs. Yet the real question this poses is for Europe itself. Four decades ago, Japanese automakers established production facilities in Europe, employed local workers, and integrated into regional markets. Today, the same dynamic is unfolding—with Chinese automakers—but at a far faster pace.
In a speech to the European Parliament on September 16, Ursula von der Leyen stated that the EU’s trade deficit with China reached €360.6 billion last year and expanded by 9% in the first half of this year, reaching what she described as a “tipping point,” signaling Europe’s second major encounter with the impact of Chinese industrial competition.
The EU officials’ concern over “preventing deindustrialization” reveals a deeper anxiety: it is not merely that Chinese vehicles are priced competitively, but that European-made cars are losing market share.
Original source: toutiao.com/article/1876635057181770/
Disclaimer: The views expressed in this article are those of the author alone.