BRUSSELS — The European Union has asked China to voluntarily restrict exports of hybrid cars, part of broader efforts by the bloc to prevent an escalating trade dispute.
Brussels specifically proposes that Beijing limit Chinese hybrid vehicle sales to approximately 15 percent of the total EU market, according to individuals familiar with the matter.
An EU official said the bloc would act unilaterally if necessary. "If they will not limit their exports to our market then we will. This is about stopping deindustrialisation. We have to act. It's about managed trade."
Beyond hybrid cars, the EU has requested China limit exports of chemicals and other products, while seeking increased Chinese purchases of European goods.
European Commission President Ursula von der Leyen announced Wednesday that the EU would use every available tool to reduce its trade deficit with China. Speaking to the European Parliament, she said the bloc's goods trade deficit with China totaled 360.6 billion euros ($413.4 billion) last year, widening 9 percent during the first six months of this year.
Von der Leyen characterized the current imbalance as a "tipping point," describing Europe's situation as a second "China shock" through deindustrialisation.
European Trade Commissioner Maros Sefcovic is leading negotiations with China on the trade gap and has indicated he wants tangible results by October. He is expected to visit China by early next month.
The EU maintains that a surge in Chinese exports — including chemicals, batteries and vehicles — stems from overcapacity in China's industries. Beijing has rejected the criticism, describing concerns over economic imbalances as protectionist measures aimed at constraining its growth.
