Podcasts · CATO — Geopolitics & Macro | AGORA Intelligence
Chinese Hybrids: Beijing Rejects the Cap, BYD Builds
Episode Chinese Hybrids: Beijing Rejects the Cap, BYD Builds
On 19 September 2026 China's ministry of commerce rejected the voluntary restrictions on hybrid exports to Europe requested by Brussels, which has floated tariffs as the alternative. Meanwhile BYD is planning four European plants and Leapmotor is assembling cars in a Stellantis factory. Japan's 1981 precedent points to the outcome: the trade barrier moves the factories inside the protected market and redistributes risk between carmaker, host government and suppliers.
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