Key facts
- The EU has asked China to limit hybrid vehicle sales to around 15% of the EU market.
- European Commission President Ursula von der Leyen stated the EU's goods trade deficit with China hit €360.6 billion last year.
- Bosch plans to cut 13,000 jobs in its automotive business by 2030.
- The EU is experiencing a second 'China shock' through deindustrialisation, according to von der Leyen.
The European Union has requested China to voluntarily limit its exports of hybrid cars to prevent a trade war, according to a Financial Times report citing people familiar with the matter. Brussels aims to cap Chinese hybrid vehicle sales at approximately 15% of the EU market, with an EU official quoted as saying, "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."
European Commission President Ursula von der Leyen stated on Wednesday that the bloc would utilize all available tools to reduce its "unsustainable" trade deficit with China, which reached €360.6 billion ($413.4 billion) last year and widened by 9% in the first six months of this year. She described the situation as a tipping point, warning that Europe is experiencing a second "China shock" due to deindustrialisation.
Workers at auto supplier Bosch are also urging the EU to implement regulations that would promote local production and safeguard jobs. Frank Sell, head of the general works council at Bosch's Mobility unit, representing around 70,000 German workers, noted that Bosch plans to cut 13,000 jobs in its automotive business by 2030. Major European car manufacturers like Volkswagen, BMW, and Mercedes-Benz are reportedly facing intense competition from Chinese manufacturers, import tariffs, and high production costs.