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Electric cars go out to sea against the "headwind"! The Ministry of Foreign Affairs responded

2024-07-16 Update From: AutoBeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)03/23 Report--

On March 22, Foreign Ministry spokesman Lin Jian held a regular press conference to respond to the "headwind" encountered by Chinese electric vehicles at sea. Lin Jian said that electric vehicles are a global industry, only division of labor and cooperation can be mutually beneficial and win-win, and only fair competition can make technological progress. Engaging in protectionism and trade barriers in the name of "fair competition" and "national security" violates the principles of market economy and WTO rules. In the short term, it seems to take advantage, but what is protected is backwardness, what is lost is the future, and the result is multiple losses. In the long run, it will only harm the interests of domestic industries and consumers, and affect the green transformation of the global economy and efforts to combat climate change.

Lin Jian pointed out that in fact, the automobile industry in the United States and Europe also has a lot of opposition to this. Many executives and business associations of European car companies believe that the West should not be afraid of Chinese electric cars and rely on restrictive measures such as imposing tariffs. It will not help to solve the problem of competitiveness. Lin Jian stressed that the popularity of Chinese electric vehicles depends on scientific and technological innovation and excellent quality formed in the global market competition, not on subsidies to support and protect them. At the same time, China has completely abolished the restrictions on the access of foreign investment in the manufacturing sector, and has always opened its doors to global automobile enterprises, which fully enjoy the dividends of China's big market.

On March 5, the European Commission (hereinafter referred to as "the European Commission") issued a notice urgently requiring EU customs authorities to start registering electric vehicles imported from China, and may impose "retroactive tariffs" on related vehicles in the future. Britain and the United States are preparing to conduct countervailing investigations or national security risk investigations on Chinese electric vehicles. The reason given by the European Commission is that imports of electric vehicles from China have grown by an average of 11 per cent a month since the launch of an anti-dumping investigation into China's electric vehicle industry in October last year, which could cause damage to the EU market.

The move reflects a further rise in protectionist sentiment in the EU's local auto industry. In September 2023, European Commission President Ursula Ursula von der Leyen announced that he would launch a countervailing investigation into Chinese electric vehicles because of EU concerns that Chinese car companies produce low-cost electric vehicles through large government subsidies, which could threaten the development of domestic electric vehicles when they enter the EU market. The following month, the European Commission issued a notice announcing a countervailing investigation into new battery electric vehicles (pure electric vehicles) designed to carry passengers originating in China. the scope of the investigation includes pure electric vehicles designed to transport nine or less people, including drivers, and driven by one or more electric motors.

According to the statistics provided by the European Commission, there has been a substantial increase in the import of Chinese-made pure electric vehicles within the EU from October 2023 to January 2024. Specifically, imports between October 2023 and January 2024 were 177839 units, an increase of 14 per cent over the same period last year. "the damage may have begun before the end of the investigation and is difficult to make up for," the Commission said. in order to eliminate the recurrence of damage, it is necessary to prepare for possible retroactive measures through registration in order to prevent the recurrence of such damage. " The European Commission believes that if the EU automobile industry suffers material damage again before the end of the current investigation, countervailing duties will be imposed on registered imports.

On March 14, the Ministry of Commerce held a regular press conference. He Yadong, spokesman for the Ministry of Commerce, responded at the meeting, hoping that the European side would prudently use trade relief measures to create a more stable and healthy environment for the development of the electric vehicle industry in China and Europe. He Yadong said that Chinese electric car exporters reflected that China's exports to the EU were in line with changes in EU electric vehicle consumption, and that there was no so-called "surge in imports" and "damage" to the EU market. The adoption of import registration measures and possible retroactive taxation by the EU has increased the import links and added a burden to normal trade exchanges, which is not conducive to deepening cooperation between the two sides in the new energy industry, and will also affect the interests of EU consumers.

The EU countervailing investigation of pure electric vehicles from China will not have a significant impact on the operating conditions of Chinese car companies, because at present, Chinese car companies are not highly dependent on the EU market, but in the long run, the survey is likely to have a negative impact on Chinese car companies to expand their market share in Europe and slow down their entry into the European market.

Another impact of the EU countervailing investigation into Chinese electric cars is that Chinese car companies have to rethink their export strategies and methods. If Chinese car companies are levied countervailing duties, it could accelerate the progress of Chinese car companies to build capacity in Europe, where they cannot give up after all.

Apart from the European Union, the United States is also "making trouble."

On the 5th, local time, US Senator Rubio proposed a sharp increase in tariffs, which will also be extended to cars made by Chinese automakers in Mexico and other countries. According to reports, Rubio said that the existing US tariffs are not enough to confront China, and that "multi-pronged" measures should be taken to protect the US auto market before it is too late. He declared that uniform tariffs would deal with the disproportionate advantage of China's low-end cars, plug loopholes and "protect US carmakers and workers from the influx of cheap cars from China".

"Chinese cars are very popular around the world, not by the so-called 'unfair' practices, but by technological innovation and excellent quality formed in the fierce market competition," former Foreign Ministry spokesman Mao Ning said on March 1. " Mao Ning said: China has always opened its doors to global auto companies, and US auto companies have been fully enjoying the dividends of China's big market. on the contrary, the US side has vigorously engaged in trade protectionism and set up discriminatory subsidy policies and other obstacles, seriously hindering Chinese cars from entering the US market. This politicization of economic and trade issues will only hinder the development of the American automobile industry.

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