The European Parliament voted on Wednesday (7th) to adopt a resolution taking a tougher stance toward China. The parliament supports taking stronger actions against Beijing, labeling China as a "decisive enabler" of Russia's war, calling for a "sustained (European) naval presence and joint exercises" in and around the Taiwan Strait, and urging swift action to counter Beijing's industrial policies, which it deems a "survival threat" to the EU.
*EU may set import caps, imposing tariffs on excess imports*
Meanwhile, according to Bloomberg, the EU is preparing to restrict Chinese hybrid vehicles from entering the EU market, possibly through tariff quotas—imposing tariffs on products exceeding a certain import volume. Citing informed sources, the report states that the import cap proposed by the European Commission will be time-limited and initially piloted on hybrid vehicles. If effective, similar measures could later be extended to other sectors where the EU perceives trade imbalances. Currently, Chinese hybrid vehicles account for a quarter of total car sales in Europe.
EU Trade Commissioner Valdis Dombrovskis will travel to Beijing later this week to meet with China's Minister of Commerce Wang Wentao. Sources say the EU's related plans may be adjusted based on the progress of the talks.
Europe is considered the most promising overseas market for Chinese automakers. In recent years, multiple new energy vehicle (NEV) companies have aggressively expanded into the European market, with BYD and XPeng (09868) being the most active. Following the news, auto stocks broadly declined: XPeng Group (09868) dropped 1%, trading at HK$37.62; NIO (09866) fell 0.1% to HK$27.12; Li Auto (02015) declined 0.5% to HK$43.28; Geely Automobile (00175) dropped 1.3% to HK$14.77; Seres (09927) fell 1.9% to HK$36.30; Leapmotor (09863) declined 1.4% to HK$34.60.
Currently, the Hang Seng Index stands at 24,083, down 47 points or 0.2%, with main board turnover nearing HK$40 billion. The Hang Seng China Enterprises Index is at 8,114, up 32 points or 0.4%. The Hang Seng Tech Index is at 4,159, down 35 points or 0.8%.
| Stock (Code) | Current Price (HK$) | Change (%) |
|---|---|---|
| BYD (01211) | 74.20 | Down 0.47% |
| XPeng Group (09868) | 37.62 | Down 1.00% |
| NIO (09866) | 27.12 | Down 0.15% |
| Li Auto (02015) | 43.28 | Down 0.51% |
| Geely Automobile (00175) | 14.77 | Down 1.34% |
| Seres (09927) | 36.30 | Down 1.89% |
| Chery Automobile (09973) | 23.86 | Down 4.25% |
| Leapmotor (09863) | 34.60 | Down 1.37% |
