EV

European Union to step up electric vehicles war


Europe is becoming a key battleground for the marketing of electric vehicles (EVs) as the European Commission prepares to bring down what has been called a “blockbuster” report on whether Chinese subsidies are unfairly undercutting their European rivals.

Models pose near the BYD Seal 06 Dmi unveiled during Auto China 2024 held in Beijing, Thursday, April 25, 2024. [AP Photo/Ng Han Guan]

Trade and tariffs were one of the main topics in the discussions between Chinese president Xi Jinping and European Commission president Ursula von der Leyen in Paris on Monday.

Following the meeting, Macron said there had been some advances on the issue of whether China would impose retaliatory tariffs on French cognac.

Von der Leyen struck a belligerent tone on the key issue of EVs. She repeated the claim that China’s “surplus production” was calling market distortions.

“We will defend our companies, we will defend our economies,” she said.

Marcon’s concerns go well beyond brandy. He struck a similar tone to Von der Leyen in a recent newspaper interview in which he said trade relations with China had to be framed with regard to France’s economic security.

There needed to be an “update” because China had “excess capacity in many areas and exports massively to Europe.”

He was not proposing that France distance itself from China but “we must better protect our national security, our sovereignty … and be much more realistic in defending our national interests.”

The same issues are being raised in the US as the Biden administration is developing further anti-China measures on a range of high-tech products. These include EVs and “smart cars” on the basis that they are a threat to “national security”—underscoring the link between economic and military warfare.

There is no question the Chinese state provides support for what it regards as key sectors of manufacturing.

This is in line with the push by Xi to develop the “new productive forces” regarded as central to the next stage of China’s economic development. This is under conditions where the old “model” based on massive real estate and infrastructure projects has run into major problems, not least the growth of debt.



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