The trade relations between China and the European Union (EU) are facing increased tension as the EU moves to impose tariffs on electric vehicle imports from China. This decision has sparked concerns over a potential trade war between the two major economic partners.
Despite intensive policy consultations, the EU and China have not reached a compromise on this issue. The EU's decision reflects a self-centered approach in dealing with trade frictions, leading to strained relations.
Hungary's Prime Minister Viktor Orban has expressed concern, stating that Europe is launching an \\"economic cold war\\" against China. European media outlets are speculating about possible retaliatory measures from China and the potential for a prolonged trade conflict.
The EU has set a high political tone in its countervailing investigation against Chinese-made electric vehicles. Aimed at protecting the \\"industrial security\\" of European automakers, the EU initiated the investigation proactively, even before formal complaints from the European automotive industry were filed. This move disregards opposition from within the European business community.
The investigation revealed that automobile companies from Germany and other European nations hold a significant share in China's electric vehicle exports to Europe. Imposing high tariffs could harm both Chinese and European car manufacturers by increasing costs and reducing competitiveness. European consumers might also face higher prices and limited choices as a result.
Furthermore, using tariffs to shield the European auto industry from what is perceived as \\"unfair competition\\" could hinder the industry's ability to develop sustainably. Overprotective measures may stifle innovation and competitiveness in the long term.
As the final negotiation phase approaches, the EU's unwillingness to compromise may escalate tensions further. If mutual expectations are not managed effectively, China and the EU risk moving toward a trade war that could have significant repercussions for both economies.
Reference(s):
cgtn.com
