On the chessboard of international trade, every move touches the nerves of many stakeholders. Recently, a storm caused by the European Union's tax hike on China's electric vehicles is quietly brewing into a storm that could change the trade pattern between China and the EU.
As July 4 approaches, whether the EU will turn back has become the focus of global attention. What kind of interest entanglements and strategic considerations are hidden behind this game?
The origins of it all can be traced back to a decision of the European Commission. Their announcement of a tax hike on China's electric vehicles may seem high-sounding, but in fact there is an undercurrent.
The move immediately caused quite a stir within the EU, with countries such as Germany, Sweden, the Czech Republic and Slovakia expressing their opposition.
These countries understand that this move could not only damage relations with China, an important trading partner, but also have a significant impact on the EU's own auto industry.
At the same time, European auto giants such as BMW, Mercedes-Benz, and Volkswagen also spoke out overnight, expressing concern about the EU's decision-making. They are well aware that China is already at the forefront of the world in the field of electric vehicles. The tax hike on Chinese electric vehicles will undoubtedly weaken the competitiveness of European car companies in the global market, and may even affect their living space.
However, the European Commission's decision is not unfounded. Under the impetus of the United States, Western countries seem to be forming a situation of joint containment of China's industrial development.
The United States took the lead in taking action against Chinese cars, raising taxes by as much as 100%, and U.S. Treasury Secretary Janet Yellen publicly called on the West to unite "against China" at the G7 finance ministers' meeting.
The European Commission's approach inevitably makes people suspect that it is currying favor with the United States at the expense of the interests of the majority of member states and European car companies.
In the face of the EU's decision to raise taxes, China's Ministry of Commerce has taken decisive countermeasures. They announced an anti-dumping investigation into EU pork and pig by-products, and subsequently launched a review of anti-dumping measures against EU imports of toluidine.
This series of actions undoubtedly sends a clear signal to the EU: China will not sit idly by and watch its own interests be harmed.
In this game, the divisions within the EU are also becoming more and more obvious. Countries such as Hungary and Poland have supported China, and they see great potential for cooperation with China.
Hungarian Foreign Minister Szijjártó even called Chinese Foreign Minister Wang Yi and said that developing cooperation with China would be an important goal during Hungary's EU presidency.
During his visit to China, Polish President Duda also said that Poland is willing to cooperate with China in the fields of new energy and electric vehicles.
Behind this turmoil, there is actually a battle for the dominance of future industrial development. As a representative of emerging industries, electric vehicles have broad development prospects and huge market potential. Whoever can take the lead in this field will be able to occupy an advantageous position in the future competition. Therefore, neither the EU nor China can easily give up the fight in this area.
However, the outcome of this game does not depend on the will of one party, but requires both sides to seek consensus through dialogue and consultation. If the EU can turn back and re-examine its decision-making, then there may be room for salvage in the trade relationship between China and the EU. Otherwise, both sides will face huge losses and risks.
As July 4 approaches, the EU's decision-making will be the focus of global attention. At this critical juncture, we expect the EU to make an informed choice to lay a solid foundation for the future development of China-EU trade relations.
At the same time, we also hope that China will continue to uphold its position and principles and safeguard its legitimate rights and interests.
In this game, it is not difficult for us to see the fact that in today's globalization, unilateral actions by either side may have a profound impact on the global trade pattern.
Therefore, all parties should resolve differences and problems through dialogue and consultation, and jointly promote the healthy development of global trade.
Now, let's go back to the original question: will the EU turn back? The answer to this question will have a direct impact on the future direction of China-EU trade relations. We'll see.
Prior to this tax hike, China-EU trade relations had maintained a steady development trend. The EU has been China's largest trading partner for 16 consecutive years, with a bilateral investment stock of more than 250 billion euros and a total trade volume of 783 billion US dollars.
In the field of electric vehicles, China's exports also continued to grow, reaching 4.91 million vehicles in 2023, of which new energy vehicle exports increased by 77.6% year-on-year.
Europe is one of China's main export destinations for electric vehicles, and the cooperation between the two sides in this field has broad prospects.
However, the EU's decision to raise taxes has cast a shadow over this cooperation. If the EU insists on raising taxes, it will directly increase the cost of Chinese cars exported to Europe, so that the price advantage of Chinese electric vehicles in the European market will be wiped out.
This is undoubtedly a serious blow to China-EU trade relations, and it is also an irresponsible behavior for European car companies and consumers.
In the face of this situation, the countermeasures of China's Ministry of Commerce appear to be timely and powerful. By conducting anti-dumping investigations on pork and pig by-products and imported toluidine from the EU, China has sent a clear signal to the EU that any action that harms China's interests will be countered.
This decisive response not only safeguards China's national interests, but also sets a bottom line for the future development of China-EU trade relations.
In this turmoil, we have also seen divisions and contradictions within the EU. On the one hand, some member states, represented by Germany and Sweden, clearly oppose the decision to raise taxes;
On the other hand, the European Commission seems to be more inclined to cater to the strategic needs of the United States and ignore the interests of its member states.
Such divisions and contradictions have not only weakened the EU's overall strength and influence, but also brought uncertainty to the development of China-EU trade relations.
Whatever the outcome, however, we should recognize the fact that in today's globalized world, unilateral actions by either party can have a profound impact on the global trade landscape.
The cooperation and competition between China and the EU, as two major economies, will have a direct impact on the future development of the global economy. Therefore, the two sides should resolve differences and problems through dialogue and consultation, and jointly promote the healthy development of global trade.
At this critical juncture, we expect the EU to re-examine its decision-making and make an informed choice.
At the same time, we also hope that China can continue to adhere to its own position and principles, and promote the healthy development of China-EU trade relations while safeguarding its legitimate rights and interests. The world is watching this suspense.
Whatever the outcome, the game will have a profound impact on China-EU trade relations and even the global trade landscape. We will wait and see if the two sides can find the best way to resolve the issue through dialogue and consultation.