«——【· Preface ·】——»
We all know that China and the EU are now in a state of uproar because of the countervailing policy. Who knew that now another Turkey has popped up to make a demon.
You must know that Turkey is not a member of the European Union, and it actually follows the EU's style. On July 7, Turkey announced a new tariff on all cars imported from China, with an increase of up to 40%.
Why did Turkey suddenly start targeting China as well? And what countermeasures does China have?
«——[· Ministry of Commerce Complaint ·]——»
On October 8, 2024, China's Ministry of Commerce solemnly announced through official channels that China has lodged a formal protest and refutation to the World Trade Organization (WTO) in response to Turkey's additional 40% tariff on Chinese imports of electric vehicles.
The Chinese side pointed out that Turkey's move has very obvious discriminatory characteristics, not only violating the basic principles of the WTO, but also has a tendency towards trade protectionism. China calls on Turkey to strictly abide by WTO rules and immediately stop and correct this improper practice.
At the same time, the Ministry of Commerce also reiterated that it will spare no effort to do everything possible to resolutely defend the legitimate rights and interests of Chinese enterprises and ensure a level playing field in the international market.
«——[·Turkey Changing Face ·]——»
You must know that some time ago, Turkey's foreign minister also visited China, and the main purpose of this visit was to ask for China's support for Turkey's application to join the BRICS cooperation mechanism. After all, it's asking people to do things, so the attitude is very good.
However, China is very cautious about this issue and has not made any specific commitments.
Who knows, within a few days, Turkey's attitude directly changed dramatically, and began to impose restrictions on Chinese imported cars, with a high tax rate of 40%, which is even more ruthless than the EU's 36%.
And this is not the first time Turkey has done such a thing. As early as March last year, Turkey had actually started to import electric vehicles from China, but there was a specific range of car types, which also made the total tariff rate of Chinese imported cars reach an astonishing 50%.
This time, Turkey is even more excessive, directly expanding the scope, no matter what type of car, fuel vehicles, electric vehicles, as long as it is exported from China, it must pay taxes.
As a large European country, Turkey also has a large car market, with car sales reaching the million-level level. Not only that, Turkey is also ranked first in the global automotive manufacturing industry.
However, in the field of new energy vehicles, Turkey's performance is relatively inferior, and the annual output is frighteningly low, due to the lack of intelligent driving technology and the core three electric (battery, motor, electronic control) technology of new energy vehicles.
Faced with a large demand in the domestic auto market, Turkey can only do it in a hurry, because of the limitations of its own production capacity and new energy technology, so it has to rely heavily on imports to meet the needs of the market, which also opens up a good opportunity for Chinese car companies.
According to the analysis of the data released by the official, we can clearly see that in 2022, Turkey's car imports from China are still at a relatively low level. There were just over 3,000 cars, but in just one year, that number had grown nearly 14 times to more than 40,000.
And the best performers among these Chinese car companies are still Chery and MG. Since Chery entered the Turkey market in 2023, its sales have been very gratifying. Not to mention that the current development momentum has successfully ranked among the top five in sales.
And MG's sales are not bad, and like Chery, it can basically maintain a position in the top 10 or so. It can be seen that the Turkey market has become an important strategic highland in the eyes of Chinese auto brands.
The rapid expansion of Chinese car companies has also made Turkey's local car companies restless. After all, the development of Chinese brands of cars is too fast, and if it is not intervened, Turkey's local auto industry may have to play the game.
Therefore, the Turkey government has to take a series of measures to curb the development of Chinese car companies, and its core strategy is to increase tariffs, which are as high as 50%. In this way, it can weaken the price competitiveness of Chinese brand cars.
«——[· Other reasons·]——»
In addition to defending its own car companies, Turkey's move may have other reasons.
You know, right now, China is at loggerheads with the EU. So maybe Turkey just wants to fish in troubled waters. Erdoğan's government may think that China is now struggling to manage relations with the United States and the European Union.
So I think that if we put pressure on Chinese auto companies at this time, we can force us to make more concessions. It is also reported that Turkey has previously discussed the possibility of cooperation with several electric vehicle manufacturers such as BYD and Chery in China.
It is to use China's advanced technology and abundant funds to promote the rise of the country's automobile industry and realize its dream of becoming an automobile power.
And Turkey seems to have sensed that China may be overwhelmed in the face of multiple international challenges. Therefore, the Turkey government may think that it can use this opportunity to exert pressure on Chinese auto companies, which can have a certain deterrent effect.
According to reports, some electric vehicle manufacturers in Turkey and China may also have some potential cooperation opportunities, and they may hope to take their domestic automotive industry to the next level through such cooperation.
Finally, Turkey may be counting on this targeted behavior to increase its influence on the international stage. That is, stepping on China to climb up. They may feel that by imposing sanctions on China's auto manufacturing industry, they can demonstrate its determination and strength in the domestic auto industry to the world, thereby enhancing Turkey's position on a global scale.
Cooperation with Chinese electric vehicle companies is seen as a key step towards Turkey's goal of becoming an automotive power, providing it with an important strategic fulcrum.
Overall, Turkey's move this time is still somewhat protectionist. It can even be said to take advantage of the fire. Their unfriendly attitude towards Chinese auto companies is actually due to the lack of confidence and anxiety of their own country's industry.
In fact, it is understandable, but their approach is really unacceptable. Indeed, high taxes and fees will certainly hinder the development of some Chinese car brands in the Turkey market, giving local car brands a chance to breathe.
But isn't this an opportunity? This allows Chinese automakers to establish joint venture production bases in Turkey to achieve localized production and sales, thereby avoiding high tariffs.
«——【· Conclusion ·】——»
In today's complex international environment, peace and development should always prevail. Therefore, countries around the world should also use the path of dialogue and consultation to resolve differences and challenges. Only in this way can lasting peace and stability in the world be promoted.
Information sources:
China-Singapore Jingwei - Ministry of Commerce on Turkey's 40% tariff on Chinese car imports: urging immediate correction
Securities Times - A spokesperson for the Ministry of Commerce answered a reporter's question on China's lawsuit against Turkey at the WTO for import restrictions on electric vehicles and other vehicles