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with vote on china’s electric vehicle tariffs coming soon, opinions remain divided within the eu

2024-10-03

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on april 19, 2024, at the international container terminal in taicang port area, suzhou port, a large number of new energy vehicles were neatly arranged and were being shipped overseas. visual china map

on october 4, the european union plans to vote on whether to impose additional tariffs on chinese electric vehicles.according to cctv news, on october 2, local time, german chancellor scholz expressed his hope to resolve the dispute over the eu’s temporary countervailing duties on chinese electric vehicles through negotiations with china. at the same time, french president macron reiterated his support for additional tariffs on chinese electric vehicles in berlin.

based on news from the us "barron's" and reuters, scholz said on wednesday (2nd) that it was wrong to shut out foreign competition and narrow the circle of trading partners. "in a world full of uncertainty, conducting more trade with more countries and more trading partners is a wise way to manage risks." he stressed that the eu's response should not cause harm to itself, "this is why negotiations on electric vehicles with china must continue."

german federal finance minister lindner also called on germany to oppose the imposition of temporary countervailing duties on chinese electric vehicles in the eu vote on october 4, saying that "it is wrong for the european commission to risk proposing temporary countervailing duties in this way." ".he admitted frankly that the trade war with china would do more harm than good to the european automobile industry.

major german car manufacturers also expressed their opposition. bmw group chairman zipzer said on the 2nd that the federal government should "take a clear position and vote against the imposition of additional tariffs in the eu" because germany's economic prosperity depends to a large extent on open markets and free trade, and eu tariffs it could “trigger a trade conflict in which there are only losers.”

in addition, volkswagen also urged germany to vote against the eu's tariffs on chinese electric vehicles on the same day (2nd), saying that the tariffs would not improve the competitiveness of the european auto industry. a volkswagen spokesman stressed that "the timing of the european commission's decision will be unfavorable in the current context of weak demand for electric vehicles in germany and europe. the negative impact of this decision will outweigh any potential benefits to the european automotive industry."

unlike germany, france has long actively lobbied eu member states to vote in favor.

french president macron reiterated his support for the eu's imposition of tariffs on chinese electric vehicles during his visit to berlin on wednesday (2nd). macron said european manufacturers had to "compete with carmakers who already have an advantage in china." he claims chinese subsidies distort the market. he also warned that if a level playing field with chinese manufacturers was not re-established, it could jeopardize hopes of "producing and maintaining an industrial footprint in europe".

reuters reported on wednesday (2nd) citing sources,france, greece, italy and poland have decided to vote in favor.the above-mentioned countries together account for 39% of the eu's population, which is enough for the eu's proposal to be adopted. according to eu rules, unless 15 countries accounting for 65% of the eu's population oppose the proposal, the european commission can extend the current temporary tariffs on chinese electric vehicles into permanent tariffs for at least five years.

while the czech ministry of industry and trade declined to say how it would vote, it said it would take seriously the european commission's proposal on "china's unfair practices," noting that the united states, canada, turkey and brazil had already taken action.

when spanish prime minister sanchez visited china in early september, he said that the eu should reconsider its position. "i have to say bluntly that all of us, not only the eu member states, but also the european commission, need to reconsider this decision. as i as i said before, we don’t need another war, a trade war.” spain’s position has since become unclear. previously, spain had supported the imposition of tariffs.

the european commission has now submitted the final tariff proposal to the 27 member states, and the bill is expected to be voted on on october 4.