"Dependent on China... Concerns over Retaliatory Tariffs"
"No EU 'Green Deal' without Chinese Resources"
The European Union (EU) is discussing the imposition of punitive tariffs on the 'overproduction' of Chinese electric vehicles, while CEOs of major EU automakers such as BMW and Volkswagen are expressing concerns, calling the tariffs "digging their own graves."
According to major foreign media on the 8th (local time), the EU Commission has been conducting an anti-subsidy investigation on Chinese electric vehicles since last October.
Oliver Zipse, CEO of BMW, described this as "digging my own grave very quickly." Zipse said, "Our industry does not believe it needs protection," adding, "If we operate on a global basis, major automakers can gain industrial benefits. However, imposing (punitive) tariffs could cause us to lose these advantages."
Zipse also stated, "Automakers like BMW have a bilateral dependency with China not only in terms of final products but also in parts and raw materials," emphasizing, "There is not a single car in the EU without Chinese parts."
He particularly stressed, "Without China's resources, there is no 'Green Deal' in Europe." The EU is promoting eco-friendly industries through the Green Deal industrial plan, but imposing punitive tariffs on Chinese electric vehicles could backfire.
BMW produces the Mini EV and iX3 in China and imports them to Europe. German automakers such as BMW, Volkswagen, and Mercedes-Benz have a high dependence on China. For BMW, China is the second-largest market after Europe, with about 32% of sales in the first quarter of this year occurring in China.
It is not just BMW. Thomas Sch?fer, CEO of Volkswagen, also expressed concerns about tariffs on Chinese electric vehicles, saying, "There is always some kind of retaliation." If tariffs are imposed on Chinese electric vehicles, European companies could become targets of retaliatory tariffs. Currently, German manufacturers produce vehicles for the Chinese domestic market within China.
The EU plans to complete the ongoing anti-subsidy investigation on Chinese electric vehicles by November but may impose provisional tariffs starting in July. Currently, the EU imposes a 10% tariff on imported Chinese electric vehicles. Due to concerns over punitive tariffs, some Chinese manufacturers are considering establishing factories in Europe.
Ursula von der Leyen, President of the EU Commission, said the day before, "What we dislike is a flood of Chinese electric vehicles heavily subsidized entering the European market," adding, "We must protect our industry." She also urged Chinese President Xi Jinping to address the overproduction issue during a trilateral meeting with French President Emmanuel Macron and Xi on the 6th.
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