A social media account affiliated with China’s official broadcaster signaled Beijing is prepared to act if the European Union introduces new trade restrictions after reaching an agreement limiting imports of Chinese hybrid vehicles.
China will require the EU to implement the deal, the China Central Television’s Yuyuantantian account said in a post Tuesday.
“China reserves all rights to resort to dispute settlement and demand trade compensation within the WTO framework,” it said. “If the EU introduces new tricks while negotiating, China’s reserved measures will not be merely for show.”
The EU will cap Chinese hybrid imports at 350,000 a year from December, with the quota increasing 6% annually, a senior EU official said Monday. Beijing hasn’t confirmed the precise cap, saying only that the arrangement allows an increase from the 302,000 units shipped last year.
China’s Commerce Ministry said Monday the agreement would ensure “export space and steady growth” for Chinese companies and prevent trade tensions from escalating. Any arrangement must comply with World Trade Organization rules, it said, reserving rights including seeking trade compensation.
The Tuesday warning accompanied a rebuttal of claims that the arrangement would cut Chinese hybrid vehicle exports to Europe by more than half. That calculation compared the agreement with projected exports, rather than the 2025 baseline used in more than 30 rounds of negotiations, the account said.
The bloc’s chief trade negotiator, Maros Sefcovic, previously said the agreement would more than halve the flow of hybrids into the market from around 800,000 expected in 2026.
Disclaimer: This report is auto generated from the Bloomberg news service. ThePrint holds no responsibility for its content.
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