China says it will monitor EU moves on Chinese hybrid cars, opposes 'voluntary limit' on exports

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.

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.

"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. In a separate statement released later, the Chinese commerce ministry said it has taken note ⁠of relevant media reports.

"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. 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.

"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.