Since the conflict between Russia and Ukraine for so long, Russia has been tossed by European and American countries, and economic and trade cooperation has been hindered everywhere.
On the other hand, China's new energy vehicle brands sell well all over the world, especially in Europe. In addition, for a long time, China and the EU have been very close in economic and trade exchanges and cooperation.
However, the good times did not last long, and the old United States, who looked at China's new energy vehicles but was powerless, made a hindrance and demanded that a European country must "stand in line" to its side.
Of course, it is not only the United States that is red, but also a number of local European car companies.
As a result, Europe has also established tariff barriers for the new energy vehicle industry, and the price advantage of domestic new energy vehicles has been cut in half.
After the United States and the West hit a wall everywhere, Russia's economy began to "look eastward", and Sino-Russian trade cooperation and cooperation also rose to a new level.
Some time ago, Russia's first batch of containers arrived at Chinese ports, which touched the nerves of European countries.
1. Europe's tariff trade war with China
As early as when China's new energy vehicles led by BYD boarded the ship to Europe, an invisible market storm was brewing.
Due to the characteristics of energy saving, environmental protection and cheapness of new energy vehicles in the mainland, the local European people all praise it and love these "imported goods".
As soon as the Chinese cars arrived, the local cars suffered.
Although Volkswagen, BMW and Audi have not been affected much, some automakers have expressed their dissatisfaction with Chinese cars, accusing Chinese cars of stealing their local market.
They went to the government, and the government went to the European Commission to complain.
All countries are very worried about China's new energy vehicle offensive, for fear that the advantage of Europe's auto market will be replaced by Chinese cars, and the United States on the other side of the ocean is also urging Europe to quickly take a stand.
Although many countries and industry experts have warned that if the EU follows the US lead in imposing tariffs on Chinese cars and other products, it will only destroy the jobs of European companies, make consumers pay, and destroy the otherwise fair international trade environment.
However, it is disappointing that the European Commission decided to launch a countervailing investigation into Chinese cars in October 2023.
You must know that China is not only a big manufacturer of electric vehicles, but also many well-known European car manufacturers have production bases in China and export to Europe.
By doing so, the EU is not only harming the interests of these European companies, but also hindering the transition of the European automotive industry to electrification.
To make matters worse, the European Commission's ruling imposed a "heavy sentence" on Chinese automakers, with the tax rate soaring from 17.4% to 38.1%, which undoubtedly cast a shadow over Chinese automakers in the European market.
However, Tesla, an American automaker that exports to China, may be an exception.
The EU's approach to "strategic protection" of its own products is estimated to have been learned from the United States, although they are not as cheeky as the United States, which directly pulled China's auto tariffs to 100%, but China's car companies have also suffered a big blow.
It's a crucial election year in Europe, and many influential Western European countries are facing a moment of government change.
At the same time, the country's right-wing forces have also risen further, and the EU has become more and more conservative, and it is estimated that there will be further friction in Sino-European trade.
However, at a critical juncture, Russia gave the mainland a chance to retaliate.
Second, Russia's assist
Due to the Russian-Ukrainian war, Russia has not been able to sell its goods.
In the past, Europe has always been the main buyer of Russian goods, but now most European countries and Ukraine are standing in line and sneering at Russian goods.
As a result, Russia turned to the distant eastern powers for help and asked to increase the volume of trade between the two sides.
At the time, China was distraught by the tariff restrictions imposed by Europe and the United States, so the two countries hit it off and began a series of policies of mutual economic assistance.
In science and technology, the two countries have carried out close cooperation to promote scientific and technological innovation and industrial upgrading.
In terms of manufacturing, with the transformation and upgrading of China's manufacturing industry, Russia's cooperation with China in high-end equipment manufacturing, automobile manufacturing and other fields is also constantly strengthening.
Now, the total volume of trade between China and Russia has reached almost 200 billion dollars.
In agriculture, China's imports of agricultural products to Russia have increased year by year, and Russian wheat, soybeans and other agricultural products are also becoming more and more popular in the Chinese market.
Last year, the mainland also lifted restrictions on imports of pork supplies from Russia.
Later, with the lifting of other restrictions, in recent months, the mainland has continuously purchased nearly 5,000 tons of Russian pork.
Some time ago, the first batch of Russian containers arrived at Chinese ports, and if Europe saw that it was filled with pork, it would be half angry.
Why is Europe in a hurry? Because we buy pork from Russia, we reduce the demand for pork from other countries.
This has had a direct impact on the pork production industry in Europe, especially in countries such as Denmark.
As one of the largest exporters of pork to China, Spain saw that China was buying pork from Russia, and quickly considered countermeasures with other EU member states to find a solution.
In fact, the main reason why the mainland wants to do this is because the EU has raised taxes on China's exports too much, so the mainland has to find a strategy to fight back.
No, reduce the supply of pork, and they start to rush.
Russia's frequent supply of pork to China is also one of the results of cooperation between the two countries.
Restrictions on the supply of pork due to African swine fever were lifted, and now Russia has supplied close to 5 million tons of pork to the mainland.
At this moment, Europe on the other side has suffered a major blow, and Spain, which has been importing a large amount of pork to China in the past, is stupid.
The pork supplier in Spain directly stated that China and Spain have always been "friendly" and hoped that China and Europe would not have a conflict and hurt the peace.
Before that, Spain could earn nearly $1.5 billion a year from importing pork from China, while Europe had more than half of China's pork supply.
If Europe cuts off the pork supply chain with China, then European pork producers will definitely be "greatly injured" and "mourned".
The EU was naturally extremely uncomfortable when it saw that the mainland and Russia were under sanctions and actually joined hands to give "countermeasures", but it was helpless.
In addition to pork, China has also launched a multifaceted counterattack against the EU in other areas.
3. China's counterattack
Now, China is beginning to impose temporary tariffs on large-displacement cars abroad.
Although he did not name which car companies were to be sanctioned, European car companies, especially those in Germany, would definitely be hit at that time.
German car companies also know that China's car market is huge, and if sanctions are imposed, market share and turnover will be greatly affected.
China's trade counterattack with Europe this time has targeted not only cars, but also pork, brandy and dairy products in Europe.
On the pork side, China had considered an anti-dumping investigation into EU pork, which made Europe's pig industry and pork exporters nervous.
The vice president of a French industry association even said that without the Chinese market, it would be difficult for European pork companies.
In terms of brandy, China also plans to conduct an anti-dumping investigation. This is a big headache for France, the home of brandy.
Local brandy producers are worried that they will not be able to sell their wine in China, and they will end up losing money.
Speaking of dairy products, China has been a big buyer of dairy products in the EU, accounting for 38% of China's total dairy imports.
Now, China is also preparing to take measures against this part of the product.
Although it has not yet been said which dairy products will be sanctioned, EU countries have been unable to sit still, fearing that their dairy exports will be greatly affected once sanctioned.
You know, the EU's cream, milk powder and fresh milk were very popular in China, accounting for 18% of China's total dairy imports.
The dairy sanctions could also implicate New Zealand in Oceania, which is the largest exporter of dairy products to China.
If the EU countries are recklessly dealt with by China's countermeasures, it is difficult to say whether New Zealand will also be affected.
Crusser, executive director of the New Zealand Dairy Companies Association, said: "We expect the trading environment to remain stable, with markets always looking less friendly in the face of uncertainty. ”
First of all, the EU went against the will of the market and WTO rules, and adopted a series of unreasonable trade restrictions to embarrass China.
That being the case, China has to fight back.
In fact, almost all of this was done by the US region under coercion on the EU, and there must be US factors at play, and what was done was naturally done in accordance with the will of the United States.
4. Coercion by the United States
Regarding the EU's sanctions against China, it is rumored that the United States is behind the scenes, trying to make the EU "forced" to pass.
Looking at this data, China's exports to the EU accounted for 40% of new energy vehicles, while the United States is only 1.08%, which is not a star and a half.
China and the EU are important trading partners, with almost $1.5 million in business being negotiated every minute.
Moreover, the combined investment of both sides has exceeded $250 billion.
The sanctions have not only hurt China, but also the EU itself.
International trade is about freedom and fairness, and to do so is clearly contrary to these principles.
If the EU really listens to the excuse of "overcapacity" and makes a move on China's electric vehicles, it will be adding fuel to the fire of its own economic downturn.
I hope that the EU can think carefully about this kind of thing that harms others and is not beneficial to itself, and will not be led by the nose by the United States again.
The so-called "overcapacity of China's new energy vehicles" is actually not a real overcapacity, but reflects the anxiety of the European and American markets about the rise of China's new energy vehicles.
epilogue
The starting point of trade sanctions against China is more like "unwarranted".
China and Europe have a deep economic foundation for cooperation, and if this cooperation is undermined by some unnecessary worry and anxiety, it will be undesirable for both sides.
EU countries should maintain their independence and act in their own and long-term interests.
If we blindly let the United States go unchecked, be controlled by it, and be slaughtered by it, we will only end up with an embarrassing end.
Resources:
Phoenix TV Jin Liang2024-06-25 09:36"What the EU wants most, China gave it to Russia, 4,200 tons of pork order was finalized, and Europe's tax hike was counterattacked"
Storyteller2024-06-25 21:43"The first batch of Russian containers arrived at Chinese ports, if Europe sees what is inside, I am afraid it will be half angry"
Du Liyong2024-06-22 20:00"Russia supplies the first batch of pork to China worth $677,000"
Popular Science Apocalypse2024-06-07 19:07"After 16 years, Russian pork is coming! Can it rise in the mainland market and cut down the price of meat? 》