Global EditionASIA 中文雙語Fran?ais
World
Home / World / World Watch

EU stands to lose the most with EV tariff hikes

By Zulkafil Hassan Khan | China Daily Global | Updated: 2024-07-05 09:14
Share
Share - WeChat
Chinese auto brand BYD is the official vehicle supplier for Euro 2024 in Germany. IMAGO/BEAUTIFUL SPORTS

Electric vehicles are the need of the hour due to their efficiency and environmental benefits, and are vital for achieving carbon neutrality goals. So the European Commission's controversial decision to significantly raise tariffs on electric vehicles made by Chinese manufacturers BYD, Geely and SAIC to up to 38.1 percent, raises significant concerns as it disrupts the world's transition to a net-zero economy.

It should be noted that this decision is going to be critical for the global economy. A recent study by the Kiel Institute for the World Economy in Germany highlights that the tariffs imposed on Chinese EVs would lead to a whopping loss of around $3.8 billion in the bloc's EV imports, which make up almost 25 percent of the current value of its trade.

The European Commission's act is aimed at protecting its industries from the rapid growth of Chinese-made EVs in the global market. Not only is the action a blatant instance of protectionism but it also violates the trading rules of the World Trade Organization.

It is interesting to note that the European automotive industry has expressed severe discontent with the tariff increases, arguing that this can erode the competitiveness of EU enterprises in the EV sector on the global stage.

The "unfair subsidy" narrative was considered an integral element in Ursula von der Leyen's reelection campaign during the EU elections. Yet this move mirrors the United States strategy of "de-risking" and decoupling from Beijing, highlighting the growing instances of economic nationalism and isolation.

The exports between China and the EU account for over a third of world trade. The two economic powerhouses trade goods worth over $800 billion annually, underlining the fact that the EU needs China for survival, that both sides are dependent on one another and the tariffs disrupt the vast cooperation between the two sides in green means of transport.

Furthermore, an addition of 10 percent tariffs costs the EU importers around $1 billion which further highlights that the decision would have severe economic repercussions and disrupt the growth of a sector that is already struggling with falling prices and slowing demand.

As production, energy and labor costs in Europe are higher than in China, the tariffs will only exacerbate these differences. The value of EU imports of Chinese EVs has increased significantly from $1.6 billion in 2020 to $11.5 billion in 2023. These tariffs are likely to impede the progress made in the transition to electric vehicles and disrupt achieving the reduction of greenhouse gas emissions by at least 55 percent by 2030, under the EU's Green Deal.

The tariffs will certainly have an impact on the Chinese EV industry in terms of both profits earned and employment generated. But it would have an even worse impact on the EU as it would result in increasing the prices of the EVs because of which domestic automobile producers would face less competition and this would disrupt the transition from highly polluting automobiles that operate on fossil fuels to clean energy vehicles.

Simultaneously, the tariffs would open new markets for Chinese EV manufacturers as by shutting the Chinese EVs out of the EU markets, the demand for Chinese exports will increase elsewhere. This would result in benefiting the consumers of countries other than European ones, and would aid their transition to cleaner transportation, thus achieving carbon neutrality goals.

Chinese firms have also started picking up shares in countries with small domestic auto industries, such as Australia and New Zealand, which shows that the EU is the obvious loser in this case. Some experts argue that the decision to impose tariffs on foreign goods is an act of subsidies on domestic EV production because the EU is already burdened with a high level of debt.

However, Beijing's willingness to resolve the issue through dialogue should not be taken as a sign of weakness as Beijing has indicated that it is ready with retaliatory measures in the form of an antidumping investigation into European pork imports and an antisubsidy investigation into European dairy goods and tariffs on large-engine petrol cars if the EU does not back down.

In summary, it is a good omen that both sides have agreed to resume talks to propose a solution to the tariffs problem and hammer out their differences, and it would be in the best interest of both parties that the tariffs are removed through constructive dialogue.

The author is president of The Society of International Relations& Law, TILS, and director of Pak-China Corridor of Knowledge, Pakistan. The views do not necessarily reflect those of China Daily.

Most Viewed in 24 Hours
Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 影音先锋男人站| 欧美性猛交xxxxx按摩国内| 国产成人一区二区三区精品久久| 一卡二卡三卡四卡在线| 最新国产成人ab网站| 亚洲黑人嫩小videos| 视频一区精品自拍| 国产精品成人四虎免费视频| 免费福利在线观看| 91精品国产免费久久久久久青草| 女人扒开双腿让男人桶| 久久天天躁狠狠躁夜夜不卡| 波多野结衣一区二区三区高清在线| 国产69精品久久久久9999| 欧美色图你懂的| 在线观看日韩电影| 中国大白屁股ass| 日韩在线免费视频| 亚洲日本香蕉视频观看视频| 精品国产一区二区三区久久影院 | www夜插内射视频网站| 日本无卡码一区二区三区| 亚洲国产精品无码久久久秋霞2| 福利一区二区三区视频在线观看| 国产亚洲男人的天堂在线观看| 中文乱码字幕午夜无线观看| 夜夜偷天天爽夜夜爱| 三年片免费高清版| 欧美肥老太肥506070| 又大又粗又爽a级毛片免费看| 高清成人爽a毛片免费网站| 国产精品爆乳在线播放第一人称| jealousvue熟睡入侵中| 成年女人18级毛片毛片免费| 久久精品国产亚洲AV无码偷窥| 欧美成人中文字幕dvd| 亚洲蜜芽在线精品一区| 精品国产v无码大片在线观看| 国产三级久久精品三级| 成人草莓视频在线观看| 国产精品亚洲片夜色在线 |