"Chinese media are suggesting a 25 percent tariff for large combustion engine cars in the trade dispute with the USA and the EU. That would hit German brands hard. Other things are also being targeted.
So far, the Chinese reaction to the renewed trade dispute with the USA and the EU has been quite cautious. The tariffs announced by American President Joe Biden last week were met with criticism in Beijing. But there have been few concrete countermeasures so far. Only the Chinese Ministry of Commerce announced an anti-dumping investigation against some chemical products from the USA, the EU, Japan and Taiwan at the weekend, which could, however, take up to a year and a half.
But now Beijing is gradually filling its toolbox publicly. These include concrete proposals as well as vague threats directed against both the United States and the EU. Shortly before the EU elections, the Commission announced the results of its investigation into China's subsidies for electric cars. The Commission has also launched investigations into Chinese companies that have won tenders in Europe but may have received subsidies at home.
China has made it clear that it could react with tariffs itself. While the EU is targeting modern Chinese electric cars, the People's Republic is targeting cars with particularly large combustion engines, which are not popular among climate activists in Europe. According to the Chinese Chamber of Commerce in the EU, China could impose tariffs of up to 25 percent on sedans and SUVs with engines larger than 2.5 liters.
Around 250,000 vehicles are likely to be affected
The chamber referred to an interview in the Chinese state newspaper "Global Times" with Liu Bin, a Chinese car expert who was also involved in China's car legislation. He brings the step into play as a reaction to the measures taken by the EU and the USA, but also presents it as a climate protection instrument. According to Liu, the measure would also be in line with the rules of the World Trade Organization. According to Chinese customs data, around 250,000 vehicles were affected by the tariffs last year, around a third of all cars imported into China.
The threat is aimed directly at Germany. "The luxury models with large engines are mainly built in Germany," says Fabian Brandt, automotive consultant and partner at the management consultancy Oliver Wyman. This refers to the Mercedes S-Class, the BMW 7 Series or the high-engined series from BMW M or Mercedes AMG. He therefore says: "This hurts German manufacturers."
Airbus mentioned by name
The People's Republic's response is not limited to the automotive sector, however. The anti-dumping investigation by the Ministry of Commerce is about "co-polymerized paraformaldehyde". According to the ministry, this can partially replace some metallic materials and is used in car parts, electrical devices, industrial machinery or medical products.
Other threats that state media placed on Chinese social media are more vague. An account belonging to Chinese state television said that China had sufficient countermeasures if Europe continued to act so "obstinately" against Chinese companies. The article was prominently picked up by some state and party media. Europe itself pays high subsidies in various sectors, such as agriculture, it said. The EU is heavily dependent on the Chinese market for the export of wine and dairy products, a lawyer was quoted as saying. "The EU subsidies and dumping practices have caused considerable damage to industries in China."
The Airbus group, whose subsidies the USA has long complained about and which relies heavily on China, is also mentioned by name. "The EU is also dependent on the Chinese market in many other areas, such as aviation," it said. China had already launched an anti-dumping investigation into brandy from the EU, which mainly affects French companies." [1]
If the EU itself lives in a glass house, then the EU should stop throwing stones.
1. China droht deutschen Autoherstellern. Frankfurter Allgemeine Zeitung (online) Frankfurter Allgemeine Zeitung GmbH. May 22, 2024.
Komentarų nėra:
Rašyti komentarą