The European Commission is set to propose potential trade defense measures at the year-end summit in December, aimed at addressing its trade deficit with China and reducing reliance on single-source supply chains for critical goods. Last Friday, EU officials reached an agreement with Chinese counterparts to cap annual imports of Chinese hybrid electric vehicles at 350,000 units, likely to take effect from early December, with a permitted annual growth rate of 6%. The safeguard measure, applicable to all trading partners within the bloc, will remain in place for four years, targeting a reduction in Chinese exports of hybrid electric vehicles to the EU—projected to reach 800,000 units this year—and aiming to lower the market share of Chinese-made vehicles from the current 12% to approximately 6%. EU leaders will discuss China as the opening agenda item at this week’s summit. A senior European Commission official stated that “dialogue needs to produce results, and it has produced results,” though it appears unlikely that dialogue alone can resolve the structurally unsustainable imbalance between the EU and China.
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Original article: toutiao.com/article/1878910920264906/
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