the countdown to voting begins: "protectionism" cannot "protect" european interests
2024-09-19
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cctv reporters learned that representatives of eu member states will hold a formal vote on september 25 to determine whether to impose a five-year tariff on electric vehicles manufactured in china.
as the decisive vote enters the countdown, the consultations between china and the eu have also entered the final stage. at this critical moment of the consultations, chinese minister of commerce wang wentao is scheduled to hold talks with european commission executive vice president and trade commissioner valdis dombrovskis in brussels on september 19.
the high-level meeting in the field of economics and trade between china and the eu held at this critical time has touched the nerves of all parties in china and the eu. many european people of insight said that this rare face-to-face meeting provided a good opportunity for china and the eu to reach a consensus, and they hoped that the eu would recognize and accept the fact that the advantages of chinese electric vehicles are not based on subsidies, and abandon the plan to impose tariffs that would harm its own interests.
does china's electric vehicle advantage come from subsidies?
european people don’t see it that way!
since launching an anti-subsidy investigation into chinese electric vehicles last year, the european commission has been claiming that chinese electric vehicles are cheap and have a huge price advantage over their eu competitors, and has unilaterally concluded that this huge price advantage is a direct result of the huge subsidies the chinese government has invested in this lucrative industry. however, europeans who have personally driven chinese electric vehicles have a completely different view.
european citizen bo kerui: i have personally driven byd, nio and xpeng electric vehicles, as well as ideal suvs. i can say that they are very good cars. i am also looking forward to driving the new electric car, the q9. a friend of mine has one, and he told me that this car is better than his previous audi q7. speaking of advantages, i have to say that from my experience, the comfort and quality of chinese electric vehicles have reached a very high, even the highest level. the driving experience is also very good.
bo kerui pointed out that the chinese domestic market is probably the largest and most competitive market in the world. this has greatly promoted chinese automakers to stand out in terms of production capacity, price cost and performance innovation. some emerging cutting-edge technologies have almost become standard for chinese electric vehicles, which has become a huge advantage for chinese electric vehicles.
in fact, bo kerui's view represents the general consensus of the european market: the advantages of chinese electric vehicles are not based on subsidies, but on industrial scale, overall supply chain advantages, fierce market competition and continuous innovation. at the same time, the high-quality and efficient production capacity guaranteed by mature industrial manufacturing capabilities and low-cost and high-efficiency production methods have made china's electric vehicle industry highly competitive in the global market and deeply loved by europeans. europeans also said that the eu should not add burdens to consumers, and consumers have the right to freely buy the cars they like.
european citizen milan: i think it is important how the car is produced. if it is produced locally with more sustainable methods, i think it is better to buy an electric car produced here, but if it is produced in china with good technology and responsible methods, maybe it would be better to buy a chinese electric car.
european citizen hassan: as an ordinary person, i hope to be able to freely choose electric cars produced in china or europe and the united states. this is normal market competition. i am willing to buy chinese electric cars. the eu should treat chinese companies fairly instead of favoring american companies, because electric cars are ultimately beneficial to the world and the environment. this is about all mankind, not just a few countries.
imposing tariffs on the grounds of subsidies
untenable
it is worth noting that the so-called reason for the eu to impose tariffs on chinese electric vehicles - industrial subsidy policy, actually originated from the united states and europe. countries around the world generally adopt such policies to support the rapid development of industries in the early stages of development. in order to promote the development of the new energy industry, major economies such as china, the united states, and europe have introduced relevant support policies such as purchase subsidies.
according to a report released by the european union chamber of commerce in china, china's subsidy policy has expired on december 31, 2022 and will be withdrawn from the market. the report pointed out that as of 2023, 20 of the 27 eu member states have provided financial support for new energy vehicles, and european countries have a wide range of subsidy policies and large subsidies. subsidies for the purchase of pure electric vehicles are generally around 4,000 euros. in this regard, discerning european consumers are also clearly aware that the eu's claim of imposing tariffs on chinese electric vehicles on the grounds of subsidies is untenable.
european citizen bo kerui: the european commission said that tariffs are needed because chinese manufacturers receive funds from government subsidies. what i want to say is that europe, the united states, china and other countries all use industrial policies and provide billions of euros in subsidies for renewable energy and electric vehicle production. i think it is misleading to say that subsidies are the reason for the eu to impose tariffs on electric vehicles imported from china.
protectionism cannot
‘protecting’ eu interests
many cars exported to europe include european brands made in china. for example, germany's three largest automakers, bmw, mercedes-benz and volkswagen, all have factories in china and sell a large number of products back to europe. the eu's anti-subsidy tariffs are bound to backfire on local companies. the eu's approach and position of imposing tariffs on chinese electric vehicles have also been increasingly questioned within eu member states.
according to the website of the ministry of commerce, minister of commerce wang wentao met with german vice chancellor and minister of economic affairs and climate protection habeck in berlin on september 17. the two sides focused on in-depth and frank exchanges on issues such as the eu's anti-subsidy case against chinese electric vehicles. habeck said that germany supports free trade, welcomes chinese automobile and parts companies to invest in europe, and does not agree to impose tariffs on chinese electric vehicles. the package solution proposed by the chinese industry is an important step forward, laying a good foundation for the next round of eu-china consultations, and looking forward to a constructive response from the european commission. germany will urge the european commission to seek a proper solution with china and make every effort to avoid trade conflicts.
since the european commission announced an anti-subsidy investigation into chinese electric vehicles, some eu member states, automakers' organizations and european citizens have continued to voice opposition, believing that the eu's imposition of tariffs on chinese electric vehicles will have serious negative consequences.
european citizen bokrui: i think the first consequence is of course that consumers will pay more. it reduces choice and forces people to use old, polluting technology for longer because it makes it more expensive to buy an electric car. but i think the long-term consequences are more serious because it will delay the transition to a low-carbon society, thus hindering the green transformation that everyone aspires to achieve.
recently, the european automobile manufacturers association published an article saying that the electric vehicle market is stagnant and the european automotive industry is increasingly concerned that it may not be able to achieve the 2025 carbon dioxide emission reduction target. according to bloomberg, the european automobile manufacturers association is preparing to ask the european commission to postpone the 2025 carbon dioxide emission reduction target by two years. the draft disclosed by the media reads: "the eu is facing a crisis and consumer demand for electric vehicles is currently sluggish. in order for the eu's overall automobile market to meet the 2025 emission regulations, electric vehicles should account for 20% to 22% of passenger cars and light commercial vehicles. however, this proportion is less than 15% for passenger cars and even lower for light commercial vehicles."
cgtn reporter zhu xili: the reason why the eu wants to "protect" the auto industry "stands up" to question the eu's industrial policy is because the european auto industry has seen that the eu's move to impose tariffs on chinese electric vehicles has caused consumers to wait and see about buying electric vehicles, which has increased market uncertainty and has had an adverse impact on the eu's competitiveness. it will also hinder the eu's efforts to achieve its zero-carbon goals and the eu's own green transformation. in fact, the eu's "protectionist" approach cannot "protect" the eu's interests.
(source: cctv news client)
