The growing tension between China and Europe has reached new heights following the European Union’s decision to impose higher tariffs on electric cars made in China.
This measure has been taken in response to the investigation that concluded that Chinese manufacturers benefit from unfair subsidies, which negatively affects the European automotive industry.
However, from the other side of the continent, China has responded with harsh criticism and accusations of industrial espionage.
The European investigation, which began in Septembersought to determine whether Chinese electric cars were being sold at artificially low prices due to Chinese government subsidies.
The conclusion was overwhelming: the entire value chain of Chinese electric vehicles benefits from subsidies that give them an unfair competitive advantage.
Consequently, the European Union decided to increase tariffs on these vehicles, raising them from 15% to a range between 17.4% and 38.1%.
In response, the Chinese Ministry of Commerce accused the European Commission of requesting an unprecedented amount of information and using this investigation as a pretext to obtain commercial and industrial secrets. According to He Yadong, spokesperson for the ministry, Br’s information demands
uses went beyond what was necessary for such an investigation, requesting exhaustive details about the production and pricing strategy of Chinese manufacturers.
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Repercussions and threats
China has not stood idly by in the face of these new tariffs.
In recent days, he has threatened a series of retaliatory measures that could severely impact the European economy.
These measures include the possibility of banning the import of pork from Europe, a market in which Spain is one of the main suppliers.
The option of imposing higher tariffs on the most powerful European car models has also been mentioned, a measure that would directly affect the German automotive industry.
Allegations of espionage have further escalated the situation. Chinese state media has published articles suggesting that the European investigation was used as an excuse to spy on Chinese manufacturers and obtain critical information about the composition of car batteries, including the chemical formula and the use of raw materials such as sodium phosphate. iron and lithium, graphite, copper and aluminum.
The trade battle between China and Europe has the potential to significantly disrupt the global automotive market.
Europe, the second largest electric car market in the world, marketed 2.3 million plug-in vehicles in 2023.
A prolonged confrontation could affect not only car manufacturers but also the global supply chain, which includes suppliers of raw materials and components essential for the manufacture of electric vehicles.
The escalation of protectionist measures and retaliation threatens to destabilize trade relations between both powers, affecting multiple industries and economies in the process.
Meanwhile, automotive companies find themselves in a delicate position, trying to navigate an increasingly complex and competitive environment.
Future of uncertainty
The future of this trade dispute is uncertain. As both sides harden their positions, the risk of a broader trade war increases.
Europe and China face the difficult task of balancing their economic and strategic interests while seeking a resolution that prevents further damage to their respective economies.
To close this topic, the escalation of tension between China and Europe The new tariffs on Chinese electric cars reflect the deep differences and fierce competition in the global automotive industry.
With both sides showing little sign of budging, the impact of this dispute could resonate far beyond the automotive sector, affecting international trade relations as a whole.
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