The European Commission’s recent decision to initiate customs registration of pure electric vehicles (EVs) imported from China is stirring concerns across the industry. As part of an “anti-subsidy investigation,” this move could lead to retroactive tariffs on these vehicles if they are found to receive “unfair subsidies.”
This action raises questions about the EU’s commitment to its green transformation goals. Despite positioning itself as a leader in global climate change response, the EU is still far from achieving its target of zero carbon dioxide emissions for all new vehicles sold by 2035. In 2023, only 14.6 percent of cars sold in the EU were pure EVs. Restricting the entry of Chinese EVs may hinder the pace of the EU’s green transition.
The measures also reflect challenges within the EU’s own EV industry. In 2023, Chinese brands like BYD and U.S. company Tesla outpaced European competitors among the world’s top ten EV brands. The increasing presence of Chinese EVs in the European market is adding competitive pressure on European automakers. Implementing customs registration and potential tariffs during the investigation could further strain the industry.
On a deeper level, the EU’s actions appear to be an application of its “de-risking” policy toward China. Since the term was introduced in March 2023, it has faced criticism for its ambiguity and for equating “China” with “risk.” By scrutinizing normal economic and trade cooperation under this policy, sectors like the EV industry become unintended casualties.
In reality, collaboration with Chinese companies could accelerate the transformation of European automakers and promote mutual growth in the EV sector. In recent years, European brands such as Volkswagen and Audi have expanded their production capacities and sales networks in China. Simultaneously, Chinese EV companies like CATL and BYD have invested in factories in Europe. This synergy highlights the complementarity between China and the EU in the EV industry chain.
The EU has no reason to view Chinese EVs as a risk. Green transformation and the advancement of the EV industry serve the common interests of both China and the EU. Rather than imposing barriers, both parties should strengthen cooperation, jointly expand the EV market, and share the benefits of sustainable development.
Reference(s):
cgtn.com
