It's a big day in Brussels, and not in a good way 😕. The European Commission is gearing up to slap massive duties on electric vehicles (EVs) from the Chinese mainland—up to a whopping 35.3% in countervailing duties (CVDs), on top of the existing 10% tariff on imported cars. This decision came after EU countries didn't oppose the move in an October 4 qualified majority vote.
But hold up—is this really a smart move? Many experts think it's a big mistake that could hurt EU citizens more than it helps them. In fact, it might just backfire on the European automotive industry 🚗💥.
Here's the deal: Chinese-made EVs, including those made in joint ventures with EU and U.S. carmakers, are now matching world-class quality standards. And guess what? They're way more affordable! 🎉 That's actually what got the EU worried in the first place.
But here's the kicker: the price advantage of Chinese EVs isn't just about subsidies—which, by the way, play only a minor role these days. It's about China's massive economies of scale (they produce 60% of all EVs globally!), lower labor costs, a tech edge in batteries 🔋, fierce competition among over 100 China-based producers, and their early-mover advantages. Talk about leveling up!
So, by imposing these high duties, the EU might be shooting itself in the foot. Consumers in Europe could miss out on affordable, high-quality EVs, and European carmakers might face retaliation or lose out in the global market 🌍.
In a world where we're all trying to go green and embrace sustainable tech 🌿, is putting up trade barriers really the way to go? Food for thought.
Reference(s):
cgtn.com
