The European Union has decided to increase duties on imports of Chinese electric cars, bringing them, in some cases, well over 40%. A decision which, in addition to hurting Chinese producers, also risks having repercussions on the political life of Europe. If Italy says it is satisfied with the choice, there are more than a few nations which instead openly takes sides against it, with Germany in the lead.
“We don’t want a trade war with China” was the first statement by German Transport Minister Volker Wissing. “Electric cars must become cheaper through greater competition, open markets and significantly better location conditions in the EU, not through trade wars and market partitioning“.
For the moment, Sweden and Hungary have also joined Germany. There is a clear fear of a Chinese counter-move, which would have a very strong impact on the sales of national brands and could also affect imports of other products, other than those in the automotive sector.
Minister Urso: “I welcome the European Commission’s announcement with satisfaction”
On the other side there is Italy, which shares its position with France and Spain. “We don’t want to give up the possibility of strengthening the Italian car industry” said the Minister of Infrastructure and Transport Adolfo Urso. “We need commercial measures that protect the European market from unfair competition. I therefore welcome with satisfaction the Commission’s announcement on the introduction of duties on the entry of Chinese electric cars into Europe. The Italian automotive industry is one of the driving sectors of our country’s industrial development, which we absolutely do not want to give up“.
China says it is worried and is already studying countermoves
Leaving Europe, the strongest reaction is clearly that of China. From Beijing they make it known that they are “shocked and deeply disappointed by the European Union’s decision, which is intensifying trade frictions between China and the EU itself“.
China’s trade minister called on the EU to “immediately correct its wrong practices and address economic and trade frictions with dialogue. We will carefully monitor the EU’s next moves and will resolutely take all necessary measures to resolutely defend the rights and legitimate interests of Chinese enterprises“.
China ready for a counter-move: duties on high-powered European cars, BMW and Mercedes tremble
Already in recent weeks there has been talk of a possible Chinese retaliation, with the increase in customs duties on imports of European cars with a 2,500 cc engine capacity to rise. A certainly thriving market, given that it represents 32% of all Western car imports into China.
The increase in duties on electric vehicles imported from China into Europe is only the latest blow to Beijing. In just a few weeks the Chinese government had to deal with Biden’s enormous plan to combat Chinese imports – which brought duties on Chinese electrics imported into the USA to 100% – and that of the Turkish government, which raised duties up to 40%.
Duties on Chinese electrics, German producers are not into it. Meanwhile, the United States is preparing a maxi-anti-China plan
All the big German producers, together with Stellantis, against the duties. Only Renault timidly in favor
If politics is divided, there is more harmony among producers. Almost all the largest European groups say they are worried, and they openly stand against Europe’s decision.
Stellantis, for example, released a note writing that “As a global industry, we believe in free and fair competition in a global trading environment and do not support measures that contribute to the fragmentation of the world. Stellantis is agile in adapting and taking advantage of any scenario and today’s announcement of tariffs will not deter our overall strategy towards Leapmotor in Europe, as we have taken this potential development into account“.
Stellantis and Leapmotor together: the 20,000 euro T03 electric city-car arrives in Europe
The reference is to the agreement thanks to which Stellantis will market the Chinese manufacturer’s electric vehicles in Europe. Cars which, being produced in the Tychy plant, should not be subject to the imposition of further duties.
German producers have also always been against duties. “The timing of the European Commission’s decision is detrimental to the current weak demand for BEVs in Germany and Europe. The negative effects of this decision outweigh any potential benefits for the European and especially German automotive industry” Volkswagen says.
The other large European group, Renault, has always been the least critical of duties. Orientation also due to a different positioning on the Chinese market of the Renault and Dacia brands, much stronger in Europe than in the Celestial Empire.
Mercedes goes against the grain: “No to additional duties on Chinese electric cars, and let’s reduce those already present”
Associations divided like politics, between those who talk about risk and those about limiting the invasion
But, in conclusion, will the duties really be useful? Also in this case the answers faithfully reflect the political divisions.
The German VDA – the association that brings together German car manufacturers – says it is very critical. “The potential damage that could result from the measures is likely to be greater than the potential benefits for the European and particularly German automotive industry“.
Even the auto sector now speaks Chinese: China is ready to become the world’s largest exporter
Conftrasporto and Confcommercio have a completely different opinion, which through the mouth of president Pasquale Russo speaks of a decision that “protects the European supply chain and limits the danger of the invasion of Chinese production, which presents risks and quality levels that are very different from those of the EU“.
