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eu economist: if the eu imposes tariffs on chinese electric vehicles, its own companies will lose their competitiveness

2024-09-28

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[global times-global network reporter chen zishuai and li xuanmin] according to foreign media reports, due to the communication efforts between china and the eu, the eu’s vote on imposing tariffs on chinese electric vehicles has been postponed to october. currently, chinese representatives are still continuing negotiations in brussels. officials from eu member states such as germany, spain, and hungary have expressed their opposition to the eu's imposition of additional tariffs, believing that this may trigger an unnecessary trade war. rudy anout, an eu economist and professor at ghent university in belgium, said in an interview with a reporter from the global times on the 27th that the solution to trade friction should not be to block the market, but to find ways to cooperate.

"from an economist's point of view, if the eu imposes tariffs on chinese electric vehicles, this protectionist approach will make (european) companies lazy. if the market is not opened and companies are not allowed to face fierce competition, in the short term, it may be a good thing for european industry, but in the long run it will make it uncompetitive," anut explained.

arnout is a former belgian cabinet official and an economist who studies eu policymaking. he told reporters that china-eu cooperation in the automotive industry is very important. looking back on the past, in 2004, belgium had seven car assembly companies, and its per capita car production was the highest in europe. but later, six companies left, and the only one left was volvo's belgian factory, which was taken over by chinese car company geely group.

"we have all seen how heavy volvo's losses were before the chinese company took over, but more than ten years later, volvo today has made huge profits through rapid innovation and design and manufacturing. this is incredible to europeans "the eu economist said, "i want to say that thanks to china, otherwise (belgian automobile industry) may lose everything." public information shows that volvo's belgian factory is the largest vehicle manufacturer in belgium. after the company took over, the factory's output increased steadily.