China Rejects EU Request to Limit Hybrid Car Exports, Citing WTO Violations
China-EU Trade Dispute Over Hybrid Vehicle Exports
China's Response to EU Actions
BEIJING, Sept 18 (Reuters) - China will closely monitor EU action against its electric vehicle industry and take measures to safeguard the rights and interests of Chinese enterprises, its foreign ministry said on Friday.
EU's Request to Limit Hybrid Vehicle Sales
The European Union has asked China to voluntarily limit hybrid vehicles sales to around 15% of the EU market to prevent a trade war, the Financial Times reported on Thursday.
The EU did not immediately respond to a Reuters request for comment on Friday.
China's Call for Fair Trade Practices
"We hope the EU will honour its commitments to market openness and free trade, abide by WTO rules, and provide a fair, just and non-discriminatory business environment for enterprises from all countries," said Chinese foreign ministry spokesperson Guo Jiakun at a regular press conference.
Official Statements from Chinese Authorities
Commerce Ministry's Position
In a separate statement released later, the Chinese commerce ministry said it has taken note of relevant media reports.
Violation of WTO Rules
"So-called voluntary export limits seriously violate WTO rules and run counter to the dynamics of market economy and the principles of fair competition. China firmly opposes this," the ministry said.
Clarification on EU's Request
The ministry did not confirm if the EU had already asked China to limit its hybrid vehicle exports. Rather, its statement was in response to media reports that the EU "hoped" China would do so, or else face the possibility of higher tariffs.
Conditions for a Solution
"Any solution between China and the EU must ensure a balance of interests, comply with WTO rules and the respective domestic laws of every side, and fully take into account the interests of industries on both sides," the Chinese commerce ministry said.
(Reporting by Mei Mei Chu, Xiuhao Chen and Yukun Zhang; Editing by Christopher Cushing, Elaine Hardcastle)
