Electric cars, because the EU plans to put tariffs on China
The European Commission is working on an anti-dumping investigation into electric cars imported from China, which could lead to the imposition of tariffs. France is pressing on Brussels, while Germany is holding back. All the details
The European Commission, through its trade defense unit, is considering opening an investigation that could lead to the imposition of tariffs or restrictions of various kinds on electric cars from China. It would be an anti-dumping and anti-subsidy investigation and Brussels – as revealed by the newspaper Politico – is being pressured to start it. In fact, there are those who fear that European industry may not be able to compete with the numerous and low-cost Chinese electric vehicles. China alone produces 54 percent of the world's electric cars.
THE EUROPEAN UNION AND THE DUTIES ON CHINA
Interviewed by Politico about the investigation, the Commissioner for the Internal Market Thierry Breton said he was "very in favor of opening an anti-dumping investigation on electric cars as soon as possible", and that "the rapid increase in imports has become a problem for the industry of the European Union”.
The Union can restrict extra-EU imports if its trade authorities establish, through an investigation, that certain products have been subsidized or are being sold below cost, thereby causing harm to European industry. Brussels is not new to tariffs on basic materials from China, such as aluminum and aluminum, but has so far avoided imposing tariffs on finished and high-end products – such as medical devices or, indeed, cars – for fear of countermeasures and retaliation from Beijing: the Chinese market is a vast and fundamental one for many European companies.
THE FRANCO-GERMAN DIFFERENCES ON CHINESE ELECTRIC CARS
The Chinese economic model can be described as a "state capitalism", in which some companies – those that the Communist Party intends to transform into national and global champions – can take advantage of huge subsidies. The electric mobility supply chain is one of the industries considered strategic by Beijing and the subject of great attention: it is no coincidence that China currently dominates every link in the supply chain , from the raw material to the battery to the assembled vehicle.
Within the European Union, however, there is disagreement between France and Germany on how to deal with the sharp increase in Chinese exports of electric cars. Paris is calling for tough restrictions against what it sees as unfair competition for its auto sector. “We must not repeat with electric cars the mistakes made with photovoltaics, where we created a dependency on Chinese industry and made its producers prosper,” French President Emmanuel Macron said last month.
– Read also: Here is Macron's plan against the US and Germany with state subsidies for battery factories in France
Berlin, on the other hand, fears that European tariffs and probable Chinese retaliation could damage the sales and activities of its companies in China. Volkswagen made 40 percent of its sales in the Chinese market last year; a market that not even Siemens, another big name in German industry, seems to want to give up. Even in Germany, however, the idea that the European automotive sector could be overwhelmed by Chinese electric vehicles is starting to spread.
– Read also: All Germany's indecisions on China and national security
According to a study by the insurance company Allianz , European automakers could lose a total of 7 billion euros in annual net profits by 2030 due to competition from Chinese brands such as BYD, Great Wall and Ora, which offer low-priced vehicles and good quality.
THE TIMELINE OF THE ANTI-DUMPING INVESTIGATION
According to Politico sources, the first part of the European Commission's anti-dumping and anti-subsidy investigations into Chinese electric vehicles will be released on July 12.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/unione-europea-indagine-anti-dumping-auto-elettriche-cina/ on Thu, 15 Jun 2023 07:41:53 +0000.