Chinese electric cars under investigation. On the occasion of the Statement of the European Union, debates between Members of the European Parliament, the EU lead to questions about possible unfair competition practices, or rather announce a desire to protect themselves if they are implemented by Chinese brands. that an invasion of the markets of the western part of the Old Continent had begun.
Ursula von der Leyen, President of the Commission, seems to want to tighten the rules, showing greater caution about market rules in trade between East and West. This is nothing new; global geopolitics have long seen free trade tighten in favor of increased protectionism, but today’s announcement, in the context of the Green Deal, draws attention to the threat posed by Chinese electric vehicles.
In this regard, an investigation is being carried out with a view to analyzing the situation and adjusting Member States’ subsidies accordingly. In fact, it is no secret that the electricity industry still needs government subsidies to be able to expand, and the United States has already begun the process of expanding local production through incentives. Symbolic, in fact, is the peace made between politicians and Elon Musk after several years in which the ruling class seemed to care only about the (small) advances in electric vehicles from Ford and GM, all but ignoring Musk’s more significant achievements.
The attack does not entail a war on electric vehicles in general, but it does follow the need to not become too tied to the country, China, that today occupies a dominant position in terms of raw materials and production of battery-powered vehicles. On the other hand, specifically when it comes to batteries, Europe has already started a process aimed at keeping as many materials as possible within its borders through recycling.
China has also forced Tesla to take up market weaponry, such as cutting prices to counter emerging brands, some of which have extensive battery experience (like BYD).
While awaiting further steps, von der Leyen’s speech nevertheless reaffirms the goal of climate neutrality in Europe by 2050, while also winking at Western brands, urging them to avoid polarization and extremism, and calling for dialogue.
It should be noted that this is not a total closure for Chinese brands, but we will proceed with caution: among the hypotheses raised are the creation of possible barriers to entry and the general tendency to follow a risk reduction strategy. (reducing the risks of dependence on one country, China), rather than decoupling, i.e. complete disconnection of the EU economy and market from the Chinese one.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.