EU Trade Chief in Beijing for Talks as China Rejects Hybrid Car Curbs

European Trade Commissioner Maroš Šefčovič arrived in Beijing on Thursday for two days of high-level talks with Chinese Commerce Minister Wang Wentao. The negotiations aim to address the EU's widening trade deficit, which reached a record €360.6 billion in 2025 and grew another 10 percent in the first four months of 2026.

A key flashpoint is the surge in Chinese hybrid vehicle exports, which jumped from 3,800 units in October 2024 to roughly 50,000 in July 2026. The EU requested voluntary export restraints limiting hybrids to 15 percent of the EU market, down from over a third today, but China rejected the proposal, according to diplomats cited by the Financial Times.

“There may be a few crumbs, but I would not expect any kind of major breakthrough.”

Brussels is now considering safeguard measures such as tariff-rate quotas or import caps on Chinese vehicles. Meanwhile, a one-year moratorium on Chinese rare earth export restrictions is set to expire soon, adding urgency to securing supply chain assurances.

Experts warn against expecting a major breakthrough. Penny Naas of the German Marshall Fund predicted only "a few crumbs" rather than a broad settlement, while CEIBS professor Zhu Tian foresaw agreements on specific issues instead.

If talks fail, Germany and France may push for tougher measures at next week's EU leaders' summit. Forbes Romania reported a preliminary understanding to halve hybrid exports over four years, though concrete mechanisms remain under negotiation.