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EU tariffs on Chinese EVs based in politics rather than industry, consumer interests: experts

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EU tariffs on Chinese EVs based in politics rather than industry, consumer interests: experts

2024-06-18 20:47 Last Updated At:21:57

The European Union's (EU) tariff increases on electric vehicles (EVs) from China are rooted in purely political factors and will ultimately harm the continent's own auto industry and consumers, European and Chinese experts have said.

The European Commission on June 12 unveiled a preliminary decision to impose provisional tariffs on EVs imported from China after its anti-subsidy investigation. The pre-disclosed duties range from 17.4 percent to 38.1 percent, in addition to the standard 10 percent vehicle duty already in place.

The decision has sparked opposition and concerns from governments and businesses in European countries, including Germany, the EU's auto industry powerhouse.

"I find it entirely logical what is happening because it's based on political factors. It's based on China's global rise. It's based on the U.S.'s relative decline and Germany, Europe's very large decline. I mean there the weights are shifting and in those situations. The powers that have the dominant position tend to resort to protective measures. I think it's completely logical that in this situation of a de-globalizing world economy," said Max Otte, an investor and entrepreneur.

He added that a shift in global politics over the past two decades made this kind of protectionism entirely predictable.

"I've said this in 2006 for the first time, that we're going to see a period of de-globalization based on the broad macroeconomic and political factors. And I said again in 2019, and this is happening. And so these are counteractive measures by the EU to protect its industries, which will not work in the end because the weights have shifted too much," Otte said.

Fang Dongkui, secretary-general of the China Chamber of Commerce to the EU, said the European market will continue to entice Chinese automakers despite the tariff imposition.

"For the European market, it is attractive and will be attractive to the Chinese EV manufacturers. The reason as follows: number one, because of the political concerns to address the climate change goals, because to address such goals, the Chinese EV firms [have] huge potential to provide the public goods to facilitate the green transformation in the European countries," he said.

"Number two is because the European Union is a huge consumer market, so the EV manufacturers can benefit from such a market. And number three is because of the competition. Europeans have a lot of the competitors, so they can compete in such a market in order to make their products better and more qualified for the consumers," Fang continued.

John Gong, professor of the University of International Business and Economics, said the tariff imposition will force consumers to pay for the aftermath and do harm to the auto industry in the EU.

"Let me also point out ultimately, it's the consumers in Europe that are actually paying for this. They are suffering, and also the European climate agenda is being hampered by this tariff. And I think ultimately the entire European auto industry will fall victim to this. It's going to slow their process. They don't get to have this competition to incentivize them to invest more in development of this state of the EVs, and then lagging behind. And protectionist measures will never work to save the industry," said Gong.

EU tariffs on Chinese EVs based in politics rather than industry, consumer interests: experts

EU tariffs on Chinese EVs based in politics rather than industry, consumer interests: experts

Next Article

Gunman identified in Trump shooting incident

2024-07-15 13:54 Last Updated At:14:07

Authorities have confirmed the identity of the gunman who shot former U.S. President Donald Trump at a rally in the U.S. state of Pennsylvania on Saturday.

The shooting is being investigated as attempted assassination by the Federal Bureau of Investigation (FBI), which identified the suspect as 20-year-old Thomas Matthew Crooks from Bethel Park, Pennsylvania, a Pittsburgh suburb some 40 miles from the former president's campaign rally where the incident took place.

The shooter was killed by Secret Service personnel, the U.S. Secret Service said in a statement, adding that one spectator was killed in the incident, while another two were critically injured.

The police also found explosive devices in the gunman's car and in his residence, local media quoted sources familiar with the matter as saying.

As of Sunday, the rally site and nearby streets remained cordoned off.

Witnesses to the shooting say more than a dozen shots were heard and recall mass uncertainty for a short period.

"I was about 70 yards from the stage. It was shock and despair. You think it's a nightmare. Everything is going in slow motion. You hear the shots and there were 13 of them. The chaos, the scrambling, it took about two minutes till we found out that he's going to be okay and that they had shot the shooter. So there was a huge relief there," said a witness.

Trump was rushed off the stage at a rally in Butler, Pennsylvania on Saturday after gunshots rang out through the crowd. The former president is "fine" and was checked out at a local medical facility after the shooting incident during a rally, his campaign said in a statement.

The U.S. politicians condemned the incident, while the public believes that in the context of the election year, the incident indicates political polarization in the country has intensified.

Gunman identified in Trump shooting incident

Gunman identified in Trump shooting incident

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