The EU wants to increase tariffs on Chinese electric vehicles, and Germany, as an important member of the EU, plays an important role in the entire EU.
In the past, Habeck's green company was still quite tough on China, but this time, when German Vice Chancellor Habeck visited the mainland, he once again mentioned the matter of increasing tariffs, and although he said that he wanted to increase tariffs, he said that there was still some room for negotiation on this matter.
In particular, it is worth noting that large-displacement cars are mainly exported from Germany to China, and this business has also brought very large profits to Germany in the past few years, and the cumulative sales volume is expected to be as high as more than 20 million units.
Therefore, for Germany, how to properly handle the issue of automobile tariffs between China and Europe is related to its vital economic interests.
There are also US media reports that China will reduce tariffs on fuel vehicles to prevent taxes on electric vehicles in China, is this true?
1. At present, the tariffs have little impact on China's new energy vehicles!
Why is it said that it has little impact on China's new energy vehicles? First of all, let's take a look at the situation of the automotive companies in Germany.
German automakers have long been opposed to the EU's move to increase tariffs on Chinese electric vehicles, because China is a major core market for German manufacturers.
Once the EU's policy of increasing tariffs was implemented, German cars feared that China would take retaliatory measures to boycott German cars, so it was they who suffered in the end.
Therefore, it is obvious that the Germans are not willing to be the big culprit in this matter, especially since China's new energy vehicle industry has developed very rapidly in recent years, and has made very high achievements in terms of technology research and development and market size.
If the tariffs are really to be increased, it will inevitably lead to a trade war between China and Europe, and the German car industry will face huge market risks and economic pressures.
To take a very simple example, for example, if the EU really wants to increase tariffs on China, then the share of Chinese new energy brand cars in China will continue to increase.
Because of tariffs, German cars will lose their strong competitiveness in the Chinese market in terms of price and all aspects, so they can't afford such losses.
And experts in our country also said that in fact, for Europe to increase tariffs on the mainland, the impact on the mainland's new energy vehicles is not very large.
This is because China's new energy vehicles, in terms of upstream materials, our country itself has rich mineral resources, for the mining and processing of battery raw materials, with a great ability to take care of itself, so from the raw materials, we supply new energy vehicles is very stable.
In terms of technology, Continental's battery technology and motor technology have made very big breakthroughs, such as our own research of high energy density batteries, which can greatly improve the mileage of new energy vehicles, so we can achieve self-sufficiency.
Finally, from the perspective of sales scale, China's new energy vehicles occupy 60% of the global market share, and the huge domestic market provides strong support for the development of the industry.
China's new energy vehicle companies are also actively expanding overseas markets, and their international influence is increasing.
In contrast, the development of the new energy vehicle industry in Europe is relatively lagging behind, and there is a certain gap between China in terms of technology and market size.
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Therefore, the impact of tariffs on China's new energy vehicle industry is relatively limited, so the mainland does not have a corresponding national policy to reduce tariffs on gasoline vehicles to prevent China and Europe from increasing tariffs on mainland electric vehicles.
2. Why are China and the EU increasing tariffs on automobiles?
The consultation and cooperation between China and the EU on the issue of automobile tariffs is not only affected by economic factors, but also constrained by political factors.
The European Parliament elections on June 10 presented a remarkable change in the political landscape, with right-wing and far-right forces winning a resounding victory.
This result has set off quite a stir in the European political arena and has also had a non-negligible impact on Sino-European relations.
Right-wing and far-right forces tend to be more conservative in their political positions and tend to be protectionist in their economic and trade policies.
They may be more cautious or even resistant to foreign economic cooperation and trade.
This tendency may lead to more obstacles to China-EU trade cooperation, such as increasing trade barriers, raising tariffs, and tightening technological restrictions.
In foreign policy, right-wing and far-right forces are placing more emphasis on their own interests and sovereignty, and have more misgivings and worries about China's role and influence in international affairs.
As a result, it is more difficult for Europe and China to cooperate with China on some international issues, and there may even be differences and confrontations.
The defeat of Scholz's party in this election has made Germany face a more complex and difficult internal environment in handling Sino-European relations.
Germany has always played an important role in China-EU relations and is one of the important driving forces for China-EU cooperation.
However, the election defeat has forced the Scholz government to give more consideration to internal political pressure and the demands of different political forces when formulating and implementing its China policy.
Internal divisions and strife can also weaken Germany's active role and leadership in Sino-European relations. On some key cooperation issues, decisions are delayed or cannot be effectively promoted due to internal inaccuracies.
For example, in areas such as energy cooperation, manufacturing cooperation, and the fight against climate change, cooperation that could have been expected to deepen may be hampered by political difficulties within Germany.
Germany's domestic political instability may also make Chinese companies more cautious about investing and cooperating with Germany.
Uncertainty about the policy environment in Germany can affect investment decisions, which in turn affects bilateral economic cooperation and people-to-people exchanges.
Von der Leyen's re-election has also brought uncertainty to Sino-European relations, with von der Leyen's hardline stance on some China policies likely to hinder communication and cooperation between China and the EU.
The decline of traditional automotive powers such as France and Italy in China has led to their positions on the issue of auto tariffs in China and Europe in opposition to those of Germany.
These countries want to protect their auto industry by imposing tariffs, among other things, making it more difficult to reach an agreement between China and the EU.
3. What is the specific content of the tariff increase policy?
This measure to increase tariffs was drafted by the European Union, mainly for the sampled BYD, Geely Automobile and SAIC Group, which will increase the tariffs by 17.4%, 20% and 38.1% respectively, while the enterprises that have not been sampled will have to increase the tariffs by an average of 21%.
Most seriously, for companies that did not cooperate with the investigation, the tariff rose directly to 38.1%. Some companies even face tariffs of up to 48.1%.
The scope of the survey is also very broad, not only Chinese brands have been affected, but also Volvo, smart, Volkswagen, General Motors and other companies have been restricted in the export of pure electric vehicles produced in China.
Therefore, whether it is a Chinese domestic brand or an overseas brand, as long as the electric vehicles produced in China are to be exported to the EU, they will face an increase in tariffs.
Therefore, there are still some impacts this time, such as for China's own brands, the road to export to the EU will become very difficult.
For example, China's electric vehicles, which have gradually emerged in the international arena and will definitely win a certain market share with their own technology and cost performance, may lose their price competitiveness due to the increase in tariffs, so their market share has been squeezed.
For overseas brands, the production layout and export plans in China have to be readjusted, and the originally efficient global supply chain may be disrupted, production costs will also rise, and profit margins will be compressed to a minimum.
For the EU, its consumers are not necessarily a good thing either.
Because the tariffs mean that the price of electric vehicles will rise, the cost of purchasing them will also increase, so this will inhibit the adoption of electric vehicles in the EU.
Not only that, but this policy may also have an impact on the supply chain end such as power batteries.
The stability of the supply chain may be impacted, the cooperative relationship between upstream and downstream enterprises will be tested, and the coordinated development of the entire industry will be hindered.
In the face of this problem caused by the European Union for China, mainland auto companies have not sat still, but are taking active countermeasures, such as Great Wall Motors closed its European headquarters in Munich and re-examined and adjusted its strategic layout in Europe.
BYD chose to build a factory in Hungary, and by establishing a production base in Europe, it can reduce the impact of tariffs and further produce cars that meet local needs.
Chery has established a joint venture with a Spanish company to enhance its competitiveness in the European market through the power of cooperation.
Changan Automobile plans to study the layout of production bases in European companies, and will definitely expand the European market in the future, while Geely's Volvo plans to build a third plant in Europe.
In response to this change in trade policy by expanding production in Europe, Top Runner is working with European groups to explore growth opportunities in the European market.
The chief expert of the Continental Automotive Research Center also said that there is actually a lot of significance for Chinese electric vehicles to build factories in Europe, which is beneficial to the mainland.
For example, on the one hand, it can improve the local manufacturing capacity, bring more employment opportunities to the local area, and promote local economic development, on the other hand, it can also help improve the automobile industry chain and promote the upgrading and innovation of automobile industry technology.
epilogue
At present, the answers of China and Europe on the issue of auto tariffs have not been harmonized.
Although facing many challenges and uncertainties, it is clear that both China and Europe hope to resolve their differences and opinions through consultation and cooperation.
China's new energy vehicles are also relying on their own advantages and strength, enough confidence to fight against various trade disputes, and Germany, as an important member of the European Union, is also actively seeking a balanced solution to solve this problem.
Resources:
An agreement between China and the EU? U.S. media said that China will reduce tariffs on gasoline vehicles to prevent taxes on electric vehicles in China
Starter 2024-06-26 14:30 Sun Xuwen
https://www.toutiao.com/article/7384693368166646313/?channel=&source=news
Up to 48%, the EU intends to impose temporary countervailing duties on China's electric vehicles How do car companies respond?
2024-06-13 18:59 Author: Liu Kai Source: China Times
https://finance.eastmoney.com/a/202406133103185592.html