The tariff war between Brussels and Beijing. The expert speaks: “Europe divided in two on the Chinese question. Strong interests from Germany”
“It’s a losing game, on both sides.” With these words, Lorenzo Maria Ricci, geopolitical expert and analyst for Domino magazine, comments with Affaritaliani.it the controversial issue of EU duties on Chinese electric cars. A decision that comes after Brussels’ decision to counter online shopping with new excise duties for Chinese e-commerce companies Shein and Temu.
After 9 months of investigations into unfair competition from China, Europe has decided to apply duties on Chinese electric vehicles. What is happening?
This is an issue that has been going on for quite some time; there have been several meetings between representatives of the European Union, aimed at asking greater equal treatment in the entry of European companies into the Chinese marketwhich in fact has never been recognized. On the other hand, they are trying to hit China, since the domestic market is not taking off and there is a production shortage, which is filled with
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Auto: Urso, negotiating solution needed on duties to China
On Chinese cars, a negotiated solution is needed to restore fairness in the market. This was stated by the Minister of Enterprise and Made in Italy, Adolfo Urso, in a press briefing on the sidelines of meetings in Beijing as part of his mission with the heads of Ccig and Chery and after meeting the Italian business community in China. “Duties are a tool that is sometimes necessary to restore market conditions once they have been ascertained to have been violated. We are obviously for a free but fair market – he explained – and therefore also in this case we hope that a negotiated solution can be found that restores fairness, in light of the subsidies that Chinese companies have enjoyed, verified by the European Commission”.
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export abroad.
The European Union is strongly influenced by the decisions of the United States: every time they have tried to have an autonomous position, especially on a sensitive issue like China, they have always been called to order. It is a game to be opened, but certainly the introduction of these duties is yet another confirmation of American influence and the fact that we are moving towards greater oppositionalbeit very slowly, given that there are conflicting interests.
Whose interests?
Just look at the internal debate within the German majority with Scholz always trying to keep an eye on the German industrial giants who have huge interests in China. Europe is very divided on the China questionbecause we are clearly attracted by investments, given that we have a struggling economy. At the same time, there are competitive Chinese practices, such as the acquisition of know-how, which must necessarily be countered. We are trying to leverage this “de-risking” more and more, which in fact is very slow, at least on the German side.
And how does Italy position itself?
We, with the Meloni Government, have definitively detached ourselves from the Silk Road. An agreement with China that was one of the biggest own goals at the level of international politics on the Italian side, because it brought reduced economic advantages and a decisive crack in relations with the United States, given the high symbolic value of our adhesion to the Silk Road.
The EU is heavily dependent on China, especially in key sectors such as luxury, renewables and automotive. Isn’t it counterproductive for Brussels to risk starting a trade war with Beijing?
Several red lines have been crossed beyond which it was necessary to intervene. It is a game in which there will be a loss, on both sides. It is also counterproductive for the Chinese to have duties, because they depend on exports to foreign markets. It damages them and also the Green Deal of the European Union, given the Chinese hegemony in the renewable sector thanks to the control of production chains, for example in the construction of solar panels.
How will China react to such a tariff hike?
By introducing duties on sectors such as the automotive industry. Those who are generally not happy with this measure are the large German industrial groups, but also many other European companies that have interests in China and could be affected by this decision.
How Stellantis for the supply of batteries in China…
On electric, many companies like Stellantis have signed partnerships with China, which is more advanced in terms of batteries. Therefore, there could be retaliation in this respect. But in general, the entire automotive sector in China has made great strides, also thanks to the acquisition of know-how from European companies that have settled permanently in Chinese territory in exchange for their presence in the Dragon’s market. There is also still the risk of so-called industrial espionage.
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