Xinhua News Agency, Brussels, June 13 Title: "It is bound to damage the interests of the automobile industry and consumers" - All circles in Europe oppose the imposition of temporary countervailing duties on electric vehicles imported from China

The European Commission issued a statement on July 12, proposing to impose temporary countervailing duties on electric vehicles imported from China from July 4.

The EU abused trade protectionism in the name of "countervailing", which caused opposition and dissatisfaction from many people in the European political, business and academic circles. Observers pointed out that this move seriously disrupted and distorted the stability of the global new energy production and supply chain, dragged down the economic recovery of Europe, hindered the global green low-carbon transition, and cast a shadow on the global efforts to tackle climate change.

"Tax increases will hurt yourself"

"Imposing temporary countervailing duties on electric vehicles imported from China will be a nightmare for us!" Frank Schwerper, an automotive industry analyst at the Bank of North Germany, commented on the relevant decisions of the European Commission. He said that the European Commission's move "will certainly damage the interests of the automotive industry and European consumers".

Last October, the European Union launched a countervailing investigation against Chinese electric vehicles. This investigation was initiated by the European Commission on its own initiative without complaint from the EU industry, which is very rare in the EU trade remedy practice. European leaders and industry insiders all said that the temporary countervailing tax measures of the European Commission are not conducive to Europe itself, Europe China trade, and the green transformation of Europe and the world.

"The losers are market participants, enterprises and consumers." In the opinion of Dirk Jandulla, president of the German Wholesale and Foreign Trade Association, following the trade protectionism of the United States will cause the German automobile industry to suffer deeply. "No European car does not have Chinese parts. Our manufacturers also import electric vehicles from China, and tax increases will hurt themselves."

Kisei Zoltan, director of the Center for Political Analysis of the Sazodeweg Institute in Hungary, believes that the European Commission's approach is "very dangerous", which will restrict free trade, scientific and technological innovation cooperation and have a negative impact on the world.

Stefan de Gueala, CEO of Hassan Zammit, an old Maltese car company, told reporters that the temporary countervailing tax would increase the cost of European consumers and slow down the popularity of electric vehicles. From the perspective of environmental protection, this also means that it will slow down the transition of the EU to more environmentally friendly technologies, and it is likely that some EU countries will not be able to achieve the goal of energy transition.

In recent years, Pavel Antalic, chairman of the China Slovakia Joint Economic Committee, has often visited auto shows in China, tested many Chinese brand electric vehicles, and visited several electric vehicle manufacturers. He said that China is a very open market. Economic and trade exchanges and exchange of needed goods are one of the best ways of cooperation. Arbitrary tariff collection is not conducive to either side.

Subsidies cannot supplement competitiveness

This time, the reason why the EU imposes additional tariffs on electric vehicles imported from China is "countervailing". Is the advantage of China's electric vehicles really "made up"?

"There is no basis for facts!" This is the research conclusion of Ferdinand Dudenhofer, an authoritative German expert in automotive economics and president of Bohong Automotive Research Institute. He said that China has promoted the scale of the new energy vehicle industry with its huge market, innovative ability and complete industrial chain, which is the source of China's competitive advantage and good cost conditions in the automotive industry.

Paul Boros, secretary-general of the World Association of Industry and Technology Research Organizations, also said that electric vehicles are a field in which China has a leading edge in technology. The Chinese government is not cultivating the market with subsidies, but letting many companies compete on the same stage. Vehicle enterprises such as BYD, Weilai, Xiaopeng, and battery manufacturers such as Ningde Times compete with each other in the high-speed competition of innovation in China and continue to make a big "cake".

Weilai Automobile said on the 12th that it strongly opposes the use of tax increases to prevent the normal trade of global electric vehicles, which hinders rather than promotes the global environmental protection, emission reduction and sustainable development. "Weilai will not waver our determination to develop in the global market in the long run due to protectionism."

Subsidies cannot supplement industrial competitiveness, and protection cannot guarantee a truly powerful enterprise. Many executives of European automobile enterprises and business associations believe that the European Commission should not be afraid of China's electric vehicles entering the European market, and relying on protectionist measures such as tax increases will not help solve their own competitiveness problems, but will hinder the transformation of the European automobile industry to electrification and digitalization.

Mindagas Plukis, the public relations and communication coordinator of Renault in Poland, believes that European manufacturers must inevitably adapt to market changes. Chinese electric vehicles are not unique in the European market. European enterprises must learn to coexist with other market participants to provide consumers with more and better choices.

Cooperation can create opportunities

With high cost performance, good quality and strong functions, China's electric vehicles are not only favored by ordinary consumers, but also highly praised by professionals. Edgar Bogao, technical manager of Hommes, an old Dutch car dealer, told reporters: "Whether it's quality, intelligence or comfort, Chinese electric vehicles have opened a new horizon for us."

Analysts pointed out that the auto industry of China and Europe has broad cooperation space and common interests, and now has formed a pattern of "I have you in me, I have you in me". Volkswagen, Stelantis, Renault and other multinational automobile enterprises have established joint ventures with Chinese automobile enterprises to fully enjoy the dividends of the Chinese market.

Dudenhofer said that China has a huge and dynamic automobile market, and more and more of the world's leading new technologies come from China. He said that many German automobile manufacturers have taken root in the Chinese market and carried out long-term and stable cooperation with Chinese enterprises, which helps to ensure that German automobile manufacturers enhance their competitiveness. China is crucial to the transformation of German and even European automobile industries.

Azek Mizak, senior consultant of the Polish Electric Vehicle Promotion Foundation, told Xinhua News Agency that the state-owned Polish Electric Vehicle Company had reached an agreement with China Geely Automobile to jointly build Poland's first independent electric vehicle brand, Izera. Mizak said that cooperation is win-win. For Geely, it will be a good opportunity to enter the European market; Izera can also obtain necessary technical support and other support, so that Poland's first electric vehicle brand can be launched as soon as possible.

At the same time, Chinese automobile enterprises also play an important role in promoting the development of new energy industry. It is estimated that each new energy vehicle will reduce carbon by about 1.66 tons per year. China will export 1.2 million new energy vehicles in 2023, and this alone will reduce carbon by about 2 million tons per year.

"In the global wave of development towards green transformation, no country can move forward alone. Only through joint development and cooperation, can countries jointly move towards a better green vision," said Dudenhefel. (Comprehensively reported by Xinhua News Agency's foreign correspondents, written by Kang Yi)