The EU miscalculated, quick comment | Imposing taxes on Chinese electric vehicles
Oslo, June 12 (Xinhua) -- The EU miscalculated the tariffs on Chinese electric vehicles
On June 12, the European Commission released a preliminary ruling on the anti-subsidy investigation of electric vehicles from China, disclosing that it intends to impose a temporary anti-subsidy tax on electric vehicles imported from China. The EU side disregarded the objective fact that China's electric vehicle advantages come from open competition and WTO rules, ignored China's repeated strong opposition, and ignored the appeals and dissuades of many EU member governments and industries. It is "destroying fair competition" in the name of "maintaining fair competition".
The EU followed the US in imposing a "tariff stick" and insisted on taking protectionist actions, which not only harmed the legitimate rights and interests of China's electric vehicle industry, but also disrupted and distorted the global automotive industry chain supply chain, including the EU. The EU's politicization and weaponization of economic and trade issues will affect the atmosphere of China-EU bilateral economic and trade cooperation, harm the interests of EU consumers themselves, and undermine the EU's own green transformation and global cooperation in addressing climate change.
The EU's tax increase on Chinese electric vehicles has dealt another blow to global free trade. This is because the EU cannot settle the "rules and order account". China and Europe are important links in the global industrial chain and supply chain. Germany and other EU countries are deeply integrated with China's automotive industry chain and supply chain. EU policymakers should understand that in the current era of economic globalization, imposing tariffs on the automotive industry will only further distort the market and further split the global production and supply chain, which will do more harm than good to the long-term development of the automotive industry.
Cultivating advantages in competition is the way for enterprises to survive. If they want to create a comfort zone through tax policies, the EU has miscalculated the "economic development account". Executives of many European car companies believe that raising tariffs will not help European auto giants cope with competition from Chinese car companies. EU policymakers should understand that the key to the sudden rise of China's electric vehicle industry is not closed exclusivity, but open cooperation. Volkswagen, Stellantis and many other multinational car companies have established joint ventures with Chinese new energy vehicle companies, injecting new impetus into their own development.
The EU's tax increase on Chinese electric vehicles is actually at the expense of the interests of EU consumers. Chinese brand electric vehicles are hot in the EU, relying on competitive prices, high-quality performance and perfect services. Now the EU is wielding the tariff stick, which has greatly increased the cost of car purchases for EU consumers. A research report recently released by the Kiel Institute for the World Economy in Germany shows that if the EU imposes tariffs on electric vehicles from China, the cost of car purchases for local consumers will rise sharply. Even if the EU increases production and reduces electric vehicle exports, it will not help.
In addition to the "consumption account", the EU should also carefully calculate the "environmental account". The EU has repeatedly called on the world to achieve carbon peak and carbon neutrality as soon as possible. China's electric vehicle industry not only helps China fulfill its own emission reduction commitments, but electric vehicles exported to the EU also play an important role in reducing carbon emissions in the EU. Today, the EU is holding high the banner of green development while waving the stick of protectionism. Such "double standards" will only damage its global credibility, undermine the international community's cooperation in addressing climate change, and hinder the global green transformation.
The EU should carefully calculate whether it will make a profit or a loss by imposing tariffs on Chinese electric vehicles.
