With China Facing More Trade Barriers, It Can't Afford to Lose Europe

China has agreed to an EU plan to cap imports of hybrid vehicles, which EU officials say would cut volumes by more than half. The backdrop is a tense trade relationship: for years, China pushed into Europe with large export volumes that EU officials say squeezed profits and cost jobs. The note argues that with more trade barriers coming, China can’t afford to lose the European market. The article frames the EU cap as a response intended to reduce the scale of imports and adjust the competitive pressure on European producers.