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EU trade protectionism will only lead to a "lose-lose" situation

2024-08-11

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Reference News reported on August 11According to the U.S. Axios news website on August 9, China filed a lawsuit with the World Trade Organization on the 9th, claiming that the EU's tariffs violated WTO rules and undermined global efforts to combat climate change.

The report said the tariffs would do little to hide the fact that Chinese automakers have a huge cost advantage over other global automakers in producing electric vehicles.

“Think of Europe’s new tariffs on Chinese cars as a blow thrown by a fading heavyweight boxer,” auto expert Michael Dunn wrote in June. “It will not stop China.”

“The reality is that the Chinese are integrated into the fabric of the European car market, often in partnership with the Europeans,” he said.

According to a report on the Hong Kong South China Morning Post website on August 9, Professor Wang Yiwei, director of the European Union Research Center of Renmin University of China, analyzed that China's filing a lawsuit with the WTO may indicate that negotiations with the EU are not going smoothly and are not enough to resolve the issue of electric vehicle subsidies.

He also said that involving the WTO could be a strategy to influence some companies and chambers of commerce within the EU, as not all member states are determined to take action against Chinese electric vehicles.

Wang Yiwei said that resolving trade disputes at the WTO is a long and complex process.

He added: "But China has evidence that the EU's previous investigation into Chinese electric vehicle manufacturers may have violated WTO rules or standards, as some electric vehicle companies complained about being asked by the EU to provide sensitive information. China is using the WTO platform to safeguard the interests of its electric vehicle industry."