The European Union is taking a bold step towards protecting its automotive industry by announcing an inquiry into the imposition of additional tariffs on electric vehicles (EVs) imported from the Chinese mainland. This move comes amid growing concerns over the EU's industrial performance, particularly in the automotive sector.
Interestingly, the proposal for punitive tariffs appears to have originated from political factions within the European Union rather than from industry leaders. The hesitation from manufacturers to support government intervention is understandable, considering the potential risks to their foreign markets. In 2022 alone, the EU exported 1.1 million cars to China, making up over 55 percent of China's imports into the bloc.
In response to the EU's announcement, the Chinese mainland's commerce ministry has raised alarms about the grave risks associated with these tariffs, warning that they could \"seriously disrupt and distort the global automotive industry supply chain.\"
While China's domestic EV market is experiencing a significant boom and continues to expand rapidly, Chinese mainland EVs currently account for only 8 percent of the EV market in the EU. This disparity has led many to argue that consumers should have the freedom to choose their preferred vehicles without heavy-handed government intervention.
As the EU grapples with balancing industrial protection and climate objectives, the outcome of this inquiry could have far-reaching implications for global trade and the future of electric mobility.
Reference(s):
cgtn.com
