EU plans to impose tariffs on Chinese electric vehicles, risks backlash – Zimbabwe Post

BRUSSELS — The European Commission’s plan to impose tariffs of up to 36.3% on electric vehicles made in China has raised concerns among industry experts and business people across Europe.

Critics argue the move could exacerbate the EU’s competitiveness problems, hinder the region’s green transition and increase trade tensions with China, rather than protecting the European auto industry as intended.

Strong opposition

Michael Schuman, chairman of the board of directors of the German Federal Association for Economic Development and Foreign Trade, condemned the EU’s proposal as “wrong” and stressed the association’s strong opposition.

“The Chinese electric vehicle industry has become and will continue to be a benchmark for global innovation,” said Schumann, adding that Chinese automakers have made significant progress in smart technology, enhanced their research and development capabilities, and actively invested in the European auto industry, contributing to the development of the industry.

Tadas Povilauskas, an economist at Lithuania’s SEB Bank, described the EU’s investigation into Chinese auto subsidies as a “political move.” He noted that the influx of Chinese electric vehicle imports will increase competition for European automakers, forcing them to find ways to stay competitive.

Zoltan Kiszelly, director of the Center for Political Analysis at Hungary’s Szazadveg Institute, called the EU plan “short-sighted,” noting that European manufacturers are struggling with falling electric vehicle sales in their core market, Europe.

Kizeli believes that the root cause of Europe’s competitiveness challenges lies within the EU, not in Chinese subsidies.

“The best approach would be to encourage competition to drive down prices and push European carmakers to innovate further,” Kizeli said. “Improvements are more likely to be achieved through competition than through isolation and decoupling.”

Kiszelyi noted that Western companies have benefited from business in China for decades and urged them to confront competition from Chinese electric vehicle makers rather than trying to restrict or ban them.

Obstacles to Europe’s green transition

Experts and officials also expressed concern about potential contradictions between the EU’s green goals and its tariff policy.

“The EU’s temporary anti-subsidy tariffs on Chinese electric vehicles are hindering mutually beneficial cooperation and hindering the green and low-carbon transition,” Schuman warned.

Luigi Gambardella, president of the Central Europe Alliance, an international digital association based in Brussels, criticized the EU’s protectionist measures, saying they “risk stifling future advances in mobile technology.”

He encouraged efforts to promote mutual investment, boost common development and ensure the benefits of electric vehicle technology are more widely shared.

“Electric vehicles are essential for Europe’s transition to a low-carbon economy,” Gambardella said, noting that high costs already pose a significant barrier to widespread adoption of electric vehicles. He argued that the proposed tariffs could further slow consumer adoption of electric vehicles, undermine Europe’s climate goals and delay progress away from fossil fuels.

Schumann said: “We hope to see a wider variety of electric vehicle brands on the market, especially cost-effective Chinese models, to accelerate Germany’s green and low-carbon transformation,” and emphasized China’s role in the green transformation of the global transportation sector.

Croatian political analyst Mladen Plese said that due to the high prices of electric cars, Europeans are returning to classic, outdated technology in the automotive industry. “If electric car prices continue to be high, this situation will definitely continue, which will threaten Europe’s green transition.”

‘Threat to current market conditions’

Experts worry that the tariffs could have long-term consequences for the EU car industry and the bloc’s broader trade relationship with China.

Trinu Prits, director of the Department of Foreign Trade Policy and International Economic Organisations at the Estonian Ministry of Foreign Affairs, noted that despite Estonia’s lack of an automotive industry, the EU’s tariff measures will still affect the country’s subcontractors, importers, car repairers and consumers.

Gambardella warned: “Tariffs could make the European market less attractive for Chinese companies seeking to cooperate or enter the European market.” He said that protectionist measures clearly “pose a threat to current market conditions” and could have a profound impact on the future of travel in Europe.

“Any political or economic measures, including potential countermeasures, could lead to unpredictable consequences,” Pritz said.

source: Xinhua News Agency

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