The China Mail - EU seeks roadblocks for Chinese EVs without sparking trade war

USD -
AED 3.672501
AFN 64.000052
ALL 81.197358
AMD 364.066319
ANG 1.790365
AOA 916.999774
ARS 1525.000898
AUD 1.438383
AWG 1.8025
AZN 1.704465
BAM 1.725719
BBD 2.018882
BDT 123.247965
BGN 1.683441
BHD 0.377906
BIF 3005.722202
BMD 1
BND 1.279885
BOB 12.063778
BRL 5.183402
BSD 1.002338
BTN 96.076978
BWP 14.120969
BYN 3.01672
BYR 19600
BZD 2.01597
CAD 1.424315
CDF 2312.495038
CHF 0.836375
CLF 0.024656
CLP 973.539953
CNY 6.70475
CNH 6.714101
COP 3314.79
CRC 457.846208
CUC 1
CUP 24.056893
CVE 97.29465
CZK 21.58325
DJF 178.497375
DKK 6.60147
DOP 59.602065
DZD 133.940995
EGP 51.992301
ERN 15
ETB 160.99988
EUR 0.88312
FJD 2.24875
FKP 0.753812
GBP 0.754325
GEL 2.595019
GGP 0.753812
GHS 11.732889
GIP 0.753812
GMD 74.000416
GNF 8750.000269
GTQ 7.658099
GYD 209.730789
HKD 7.846595
HNL 26.850145
HRK 6.6546
HTG 131.186306
HUF 323.547501
IDR 17952
ILS 3.06855
IMP 0.753812
INR 95.985504
IQD 1310
IRR 1693849.999896
ISK 120.989912
JEP 0.753812
JMD 158.635902
JOD 0.709052
JPY 158.295999
KES 129.709633
KGS 87.448703
KHR 4056.000101
KMF 434.999789
KPW 900.000318
KRW 1358.484957
KWD 0.3089
KYD 0.835337
KZT 440.918897
LAK 22440.000239
LBP 89549.999842
LKR 331.231884
LRD 171.401635
LSL 16.450172
LTL 2.95274
LVL 0.604891
LYD 6.4159
MAD 9.723465
MDL 17.796797
MGA 4424.999837
MKD 54.331282
MMK 2099.783199
MNT 3598.053803
MOP 8.102072
MRU 40.084977
MUR 47.820549
MVR 15.459904
MWK 1735.99982
MXN 18.075735
MYR 4.087499
MZN 63.894034
NAD 16.459649
NGN 1327.110278
NIO 36.655019
NOK 9.630697
NPR 153.717739
NZD 1.77846
OMR 0.384509
PAB 1.002374
PEN 3.450503
PGK 4.444973
PHP 62.756498
PKR 277.050328
PLN 3.85302
PYG 5864.031411
QAR 3.645027
RON 4.6575
RSD 103.803969
RUB 83.373148
RWF 1475
SAR 3.780993
SBD 8.065041
SCR 14.585024
SDG 601.498309
SEK 10.01374
SGD 1.279395
SHP 0.754575
SLE 24.600496
SLL 20969.491881
SOS 571.483762
SRD 37.621498
STD 20697.981008
STN 21.675
SVC 8.77073
SYP 13002.000254
SZL 16.449742
THB 33.612502
TJS 9.232161
TMT 3.5
TND 2.97262
TOP 2.40776
TRY 49.034485
TTD 6.800164
TWD 31.922806
TZS 2640.003002
UAH 44.775489
UGX 3929.198542
UYU 40.386126
UZS 11820.000246
VES 859.100049
VND 25969.5
VUV 119.747847
WST 2.7762
XAF 579.288877
XAG 0.016302
XAU 0.000238595436
XCD 2.70255
XCG 1.806559
XDR 0.707052
XOF 579.288877
XPF 105.84944
YER 236.425006
ZAR 16.425675
ZMK 9001.19828
ZMW 19.596771
ZWL 321.999592
SSP 5712.591903
MXV 2.045685
  • RYCEF

    0.4000

    19.71

    +2.03%

  • CMSC

    0.0000

    20.4

    0%

  • BTI

    0.4200

    56.05

    +0.75%

  • BP

    0.2800

    44.43

    +0.63%

  • RBGPF

    1.6000

    67

    +2.39%

  • RIO

    -0.1500

    94.41

    -0.16%

  • AZN

    -0.4300

    166.15

    -0.26%

  • GSK

    0.4600

    49.7

    +0.93%

  • BCE

    -0.4100

    20.56

    -1.99%

  • NGG

    -0.2500

    75.24

    -0.33%

  • VOD

    -0.0400

    16.58

    -0.24%

  • RELX

    -0.4500

    33.07

    -1.36%

  • BCC

    -0.5500

    76.59

    -0.72%

  • CMSD

    -0.0300

    20.27

    -0.15%

  • JRI

    -0.2500

    10.77

    -2.32%

EU seeks roadblocks for Chinese EVs without sparking trade war
EU seeks roadblocks for Chinese EVs without sparking trade war / Photo: © AFP/File

EU seeks roadblocks for Chinese EVs without sparking trade war

The EU faces a delicate balancing act as it prepares to rev up taxes on Chinese electric cars to protect European industry, while steering clear of a US-style showdown with Beijing that could spark a trade war.

Text size:

Europe's automotive sector is the jewel in its industrial crown -- behind iconic brands from Mercedes to Ferrari -- but it faces an existential threat from the looming end of combustion engines and China's head start in the switch to electric.

When Brussels launched a probe last year into Chinese electric car subsidies, officials said they wanted to put the brakes on what they claimed were unfair practices undercutting Europe's car manufacturers.

Beijing reacted angrily at the time, crying protectionism.

The EU has until July 4 to order a provisional hike in import duties on Chinese electric vehicles (EVs) -- currently at 10 percent -- with the expectation it could make its move some time in June.

As anticipation builds, China has raised the temperature further with its own threats of duties. Europe's agriculture imports could be in the firing line.

Experts suggest Brussels could hike duties to between 20 and 30 percent -- enough to discourage but not fully deter Chinese exporters, which research firm Rhodium Group estimates would require 40 to 50 percent tariffs.

That is a calculated move by European Commission President Ursula von der Leyen -- who stressed the EU was planning "targeted" action, after the United States quadrupled its own duties on Chinese electric cars to 100 percent.

The EV standoff comes in a context of rising trade tensions between Beijing and Western countries -- which are investing billions in the energy transition and accuse the Asian giant of unfair competition on everything from wind turbines to solar panels.

But the EU is carefully calibrating its steps.

"I don't think anyone in Brussels wants a full-blown trade war or technology war," said Jacob Gunter, senior analyst at China-focused think tank MERICS.

"But there's a growing recognition that something needs to change in the trade and technology relationships between the EU and China."

- Different EU, US approaches -

China is the world's biggest car exporter -- and Europe is a critical market.

EU imports of EVs from China mushroomed from around 57,000 in 2020 to around 437,000 in 2023, the US-based Peterson Institute for International Economics said.

Their value rose over the same period from $1.6 billion to $11.5 billion, according to Rhodium Group.

Whereas the United States appears ready to risk a trade conflict with China, Elvire Fabry of think tank the Jacques Delors Institute sees key differences in Europe's strategy.

Washington's move is "based on a political priority to isolate China and slow down its technological development", she argued.

"The European approach is... based on facts established by an investigation" and aims to restore fair competition, Fabry said.

- Green transition risk -

Crucially, Brussels must also balance concerns about Chinese imports with its targets for slashing carbon emissions.

The EU wants many more Europeans driving electric cars as it prepares to outlaw the sale of new fossil fuel-powered cars from 2035.

China has sought to leverage this point.

"These measures will only harm the interests of their own consumers and affect the global green transformation and efforts to tackle climate change," He Yadong, China's commerce ministry spokesperson, said this month.

At home too, the EU's anti-subsidy probe has fuelled divisions between member states: it is pushed by Paris and backed by French automakers, but Germany and Sweden both expressed reservations.

Not all European manufacturers are on board either, with German carmakers opposing the probe.

- 'Politically driven' -

The EV investigation, one of the bloc's biggest to date against China, provoked Beijing's ire, especially since it came at the initiative of Brussels -- rather than being triggered by a formal complaint.

MERICS' Gunter said he expected a "pretty sharp response".

China gave a taste of what retaliatory moves it could take by launching an anti-dumping probe in January into brandy imported from the EU.

Beijing appeared to up the ante last week with reports in state-owned tabloid Global Times on potential tit-for-tat moves, like targeting pork imports.

And the China Chamber of Commerce to the EU (CCCEU) referred to a legal expert cited in Chinese media saying that European wine and dairy products could find themselves caught in the crossfire.

The trade group told AFP that the probe "appears to have been politically driven, lacking substantial complaints from European industries that adequately represent manufacturers' interests".

The EU will have to decide on any final duties by November.

burs-raz/ec/imm/smw

X.So--ThChM