Strengthening cooperation between Europe and China can bring about a win-win situation (International Forum)

Both Europe and China should continue to negotiate and resolve their differences on electric vehicle tariffs through dialogue, continuously expand cooperation, and promote industrial development

Free trade and fair competition are key to promoting global economic prosperity and sustainable development. The European Commission's adoption of trade protectionism measures to address competition in China's electric vehicle industry not only damages EU China cooperation, but also seriously harms the rights and interests of EU consumers, which is not conducive to the EU and global energy transition. Through pragmatic negotiations, Europe and China take into account each other's concerns and reach a mutually acceptable solution as soon as possible, which is in line with the common interests of both sides.

The EU's imposition of tariffs on electric vehicles imported from China has raised concerns and opposition from many German car companies. German companies believe that imposing tariffs is illogical, not in line with the interests of European car companies, and increases the burden on European car companies. At present, major European car manufacturers such as BMW and Mercedes Benz are active in the Chinese market. They choose to produce some electric models in China and export them to Europe for sale, but the EU's imposition of tariffs forces these car companies to pay high tariffs.

What is even more worrying is that the imposition of tariffs will slow down the electrification transformation of the European automotive industry and even affect the implementation of the European Green Deal. At the end of 2019, the European Commission announced the "European Green Deal" aimed at addressing climate change, proposing that Europe achieve carbon neutrality by 2050, hoping to turn climate change and environmental challenges into development opportunities. The practice of imposing tariffs has hindered the transformation of the European automotive industry and is not conducive to global green development and efforts to address climate change.

The EU accuses China of providing so-called 'unfair subsidies' to electric vehicle companies without factual basis. The development of China's electric vehicle industry is not achieved through subsidies, but through long-term industrial investment and technological research and development for 20 to 30 years, driven by a complete industrial chain, supply chain, and economies of scale generated by a huge market, it has achieved competitiveness enhancement. Currently, the global automotive industry is facing unprecedented changes, with intelligent and electric vehicles representing the industry's development trends. In the past two years, I have visited multiple Chinese cities and visited several Chinese automobile companies. The development of China's electric vehicle industry is impressive, especially in the field of power batteries, which have technological and cost advantages and are in a leading position, playing an important role in the global supply chain. The power battery is one of the most important components of electric vehicles, accounting for about 40% of the total vehicle cost. Leaving the power batteries produced in China, the European electric vehicle industry will face more challenges.

The internationalization level of the automotive industry is high, and cooperation is the key to enhancing competitiveness. The EU's imposition of tariffs damages the competitiveness of the European automotive industry. The entry of Chinese electric vehicles into the European market is conducive to promoting healthy competition, innovation, and enhancing the vitality of the European automotive industry. German and European car companies have rich experience in automobile manufacturing, brand building, and international development. Chinese car companies have made progress in electric technology, and China also has the world's largest automotive market. These are sufficient to demonstrate that there is vast potential for cooperation between Europe and China. This is also a consensus among more and more companies on both sides.

Both Europe and China should continue to negotiate and resolve their differences on electric vehicle tariffs through dialogue, continuously expand cooperation, and promote industrial development. Strengthening cooperation between Europe and China can bring about a win-win situation.

(The author is a German expert in automotive economics and the director of Bochum Automotive Research Institute)