The European Union's recent decision to impose anti-subsidy tariffs on electric vehicles (EVs) made in the Chinese mainland could have unintended consequences for the EU's own automotive industry. In 2023, EVs from the Chinese mainland held a 21.7% market share in the EU, despite brands from the Chinese mainland comprising only 7.6% of the market, according to the European Automobile Manufacturers' Association (ACEA).
While the move aims to protect European manufacturers, consulting firm Rhodium Group suggests that Chinese automakers may experience only minor impacts. However, foreign automakers like BMW and Tesla, which have manufacturing operations in the Chinese mainland catering to the EU market, could face significant challenges. These companies might incur higher costs or face reduced competitiveness in the European market as a result of the tariffs.
This shift highlights the complex dynamics of global trade and the interconnectedness of international supply chains. As the EU balances protecting its industries with maintaining open trade, the long-term effects of these tariffs will be closely watched by businesses and consumers alike.
Reference(s):
cgtn.com
