China has reportedly pushed back against the European Union’s proposal to cap hybrid vehicle exports from Chinese automakers at 15 percent, fearing it could escalate into a full-blown trade conflict. The move comes as tensions rise over market access and industrial subsidies, with Beijing seeking to protect its growing electric and hybrid vehicle sector. Analysts warn that such restrictions could trigger retaliatory measures, further straining already fragile relations between the world’s two largest economies. The dispute highlights deeper concerns about fair competition in the global automotive industry amid rapid shifts toward electrification.
China wants to safeguard Chinese automakers after the EU reportedly requested China limit hybrid vehicle sales to 15 percent to avoid a trade war.