China's Commerce Ministry firmly opposes EU calls for voluntary auto export limits

The European Union is currently considering a series of trade restriction measures targeting China, expanding from pure electric vehicles to hybrid vehicles, steel, and downstream products. These developments have raised concerns over China-EU economic and trade relations as well as supply chain cooperation.

EU Measures and Alleged "Voluntary Restriction" Request

According to Reuters, the EU announced on the 18th that it would implement import quotas and minimum price measures for electrical steel and its downstream products, aiming to protect the bloc from low-priced imports primarily originating from Asia.

The Financial Times reported on the 17th that the EU also requested China to "voluntarily restrict" exports of hybrid vehicles. The EU reportedly sought a commitment from the Chinese side to limit the market share of Chinese-made hybrid cars in the EU to approximately 15%—a figure that currently exceeds one-third.

China's Response

In response to these EU measures, a spokesperson for China's Ministry of Commerce stated on the 18th that so-called voluntary export restrictions seriously violate World Trade Organization (WTO) rules and contravene the laws of the market economy and the principle of fair competition. The Chinese side firmly opposes such actions.

The spokesperson emphasized that any solution between China and the EU must:

• Ensure a balance of interests
• Comply with WTO rules and respective domestic laws
• Fully consider the interests of industries on both sides

UK Takes Different Approach

In contrast to the EU's escalating restrictions, the United Kingdom has not followed suit by imposing additional anti-subsidy tariffs on Chinese-made pure electric vehicles.

The Daily Telegraph reported on the 17th that UK Business and Trade Secretary Jonathan Reynolds recently stated that Britain cannot simply protect its domestic automotive industry by imposing tariffs on Chinese electric vehicles. Such moves, he noted, could trigger Chinese retaliation and harm British companies' exports to China. Reynolds stressed that when considering whether to establish new trade barriers, Britain must first prioritize its own interests.

"Talk While Restricting" Approach Raises Doubts

Notably, while the EU was preparing to adopt the aforementioned measures, Chinese Minister of Commerce Wang Wentao held a video meeting on the 17th at the invitation of European Commissioner for Trade and Economic Security Valdis Dombrovskis to discuss China-EU economic and trade issues. The EU's approach of "talking while restricting" has raised doubts among observers regarding its sincerity in resolving bilateral economic and trade differences.

Expert Analysis

Jian Junbo, Director of the Center for China-Europe Relations Studies at Fudan University, told Global Times reporters on the 19th that European industry faces structural problems, including:

• High energy costs
• Slow industrial transformation
• Insufficient innovation capabilities

Jian noted that while trade protectionism may temporarily alleviate pressure on certain industries, it cannot resolve deep-seated issues. He added that China is an important component of many European industrial chains. If European enterprises are unable to continue accessing cost-advantaged Chinese raw materials, intermediate goods, and components, they may be forced to seek more expensive substitutes—thereby driving up production costs and ultimately harming bilateral trade, consumer interests, and the competitiveness of European enterprises.

Source: Yin Yeping and Wang Ce, Reporters for Global Times / Global Times Online Editor: Meng Yuan Proofreader: Li Yutong