{"text":[[{"start":9.2,"text":"The EU has asked China to voluntarily restrict exports of hybrid cars as part of a deal to prevent a trade war, as tensions between the two sides increase ahead of crunch meetings next month in Beijing."}],[{"start":21.56,"text":"European carmakers are making mass lay-offs as cheaper models made in China flood the market and Brussels wants Beijing to rein in its industry or face higher tariffs, three people familiar with the situation told the FT."}],[{"start":33.64,"text":"“If they will not limit their exports to our market then we will,” said an EU official. “This is about stopping deindustrialisation. We have to act. It’s about managed trade.”"}],[{"start":45,"text":"Brussels is seeking a commitment from Beijing to restrict sales of China-made hybrid vehicles to around 15 per cent of the EU market compared with more than a third today, the people said."}],[{"start":55.9,"text":"The official added that Brussels had proposed a number of other products, including chemicals, where it wanted China to show restraint. The bloc also wanted China to buy more European exports, the official said."}],[{"start":67.32,"text":"The EU in June set an October deadline for “tangible results” in reducing its soaring trade deficit with China, with the two sides setting up the EU-China Trade and Investment Consultations (TIC) forum to try to tackle market access issues."}],[{"start":81.76,"text":"The EU’s €1bn a day trade deficit with China had “reached a tipping point”, European Commission president Ursula von der Leyen said on Wednesday."}],[{"start":89.84,"text":"The “second China shock . . . is already here”, she said in her annual State of the Union speech."}],[{"start":95.96,"text":"“Let me be clear: we will use all the tools at our disposal to rebalance our relationship. Words are good. But deeds are better,” she added."}],[{"start":104.88,"text":"EU trade commissioner Maroš Šefčovič was due to speak to Chinese commerce minister Wang Wentao on Thursday ahead of a trip to Beijing next month, a spokesperson confirmed."}],[{"start":115.12,"text":"One of the people familiar with the EU’s position said that by suggesting China voluntarily limit its exports, the bloc is hoping to repeat the type of deal it struck with Japan in 1986, when Tokyo agreed to impose export restraints on Japanese vehicles — a policy that continued until 1999."}],[{"start":132.72,"text":"That encouraged Japanese companies such as Toyota and Nissan to invest in the EU or collaborate with domestic producers."}],[{"start":140.96,"text":"Such restrictions and even price controls were more common before globalisation accelerated in the 2000s with China’s entry into the World Trade Organization."}],[{"start":151,"text":"One person familiar with the matter said the pressure for the EU to take further action now was “massive” as Chinese imports of hybrid cars to the bloc hit a high in the second quarter."}],[{"start":162.32,"text":"Brussels imposed anti-subsidy tariffs of up to 45 per cent on Chinese electric cars in October 2024, prompting retaliatory levies from Beijing on EU cognac, meat and dairy exports."}],[{"start":175.08,"text":"But while imports of battery EVs subsequently rose gently, imports of Chinese hybrid cars — which only pay a flat 10 per cent EU tariff — soared. Imports of hybrids have grown more than 10-fold from 3,800 vehicles in October 2024 to 50,000 in July 2026 while average prices have fallen."}],[{"start":null,"text":"
"}],[{"start":196.28,"text":"Companies including VW have been calling for similarly punitive duties against imported hybrid cars."}],[{"start":202.44,"text":"The Commission hopes Beijing will agree to voluntary restrictions to vindicate its decision to seek a negotiated solution. But a consensus is forming in Europe’s two largest economies, Germany and France, for more forceful action against China after years of division over the issue."}],[{"start":219.12,"text":"Šefčovič said on Wednesday that he wants “positive outcomes” on rebalancing trade by the time he departs for China, expected in the second week of October."}],[{"start":228.24,"text":"Industries including chemicals, cars and steel warn they are facing a tipping point in the face of fierce Chinese competition."}],[{"start":235.24,"text":"Beijing has deployed a range of “Made in China” policies to boost domestic products and improve its technological prowess. It denies using subsidies, saying its competitive prices are the result of its efficient companies."}],[{"start":247.68,"text":"It is pushing for EU countries to drop export controls and sanctions on Chinese companies as part of the talks."}],[{"start":254.56,"text":"China’s ministry of foreign affairs did not immediately respond to a request for comment. The Commission declined to comment."}],[{"start":265.67,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1789628999_6766.mp3"}