The investigation announced by EU Commission President Ursula von der Leyen into the market-disrupting effects of cheap electric cars from China is apparently being interpreted as a declaration of war in Beijing. China’s leadership is already warning of “massive disruptions” to global supply chains if the Brussels investigations lead to anti-dumping duties.
The Chinese Ministry of Commerce said on Thursday that it was very concerned and dissatisfied with the European Commission’s investigation. The goal of ‘fair competition’ is just a pretext. Rather, it is “pure protectionism” on the part of the EU. China will closely monitor the European Union’s protectionist trends and subsequent measures and protect the interests of Chinese companies, the report said.
Newspaper: It could be “the toughest fight yet.”
The European Commission sees that the domestic car industry is at risk from cheap electric cars from China and is therefore investigating the possibility of punitive tariffs. On Wednesday, European Commission President Von der Leyen said markets around the world are being “flooded” with cheap electric cars. “And their price is kept artificially low by enormous government subsidies.” The European Commission has therefore launched an investigation into Chinese subsidy practices. This dispute could also have a negative impact on the EU’s own efforts to become carbon neutral as part of the “Green Deal”. “The Chinese electric vehicle market has made a valuable contribution to the fight against climate change – including within the EU,” the Ministry of Commerce in Beijing emphasized.
In connection with this announcement, the Financial Times wrote about “probably the fiercest battle yet” against Beijing to protect its own economy from excessive dependencies. This was not possible in the past when producing photovoltaic systems. China has established itself as a great power.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
