The United States has increased tariffs on Chinese cars due to its inability to compete with China in the electric vehicle supply chain.
However, it is puzzling that the European Union has followed suit with similar measures.
Starting in October 2023, the EU began anti-subsidy investigations against three Chinese electric vehicle companies: BYD, Geely, and SAIC Group.
In June this year, the EU announced that, based on the level of cooperation from each company, it would impose temporary anti-subsidy duties ranging from 17.4% to 38.1% on electric cars imported from China, starting July 4.
Including the existing 10% tariff, the total tariff on Chinese electric vehicles imposed by the EU could reach as high as 48.1%.
This decision has sparked controversy within the EU.
Countries like Germany, Sweden, and Hungary have publicly opposed it, arguing that it is detrimental to the long-term development and competitiveness of the European automotive industry.
Several German car manufacturers with significant commercial interests in Europe have warned that this move could provoke retaliatory measures from China, harming European carmakers' businesses in China.
Germany appears to be prudent, as the automotive industry is vital to the country.
German cars have been operating in the Chinese market for many years and are unlikely to blindly follow the EU in raising tariffs on Chinese cars.
Therefore, the EU is not entirely united on this issue.
Another theory suggests that the EU's increase in tariffs on Chinese cars is actually an attempt to steal China's electric vehicle technology.
In the electric vehicle sector, China is a global leader in both the supply chain and technology.
This theory is not baseless. In the past, China learned from Western countries in high-tech fields by leasing and purchasing technology.
However, now that China has made significant progress in independent research and development, Western countries have begun to steal Chinese technology.
According to reports, China has already started to retaliate against the EU's unjustified tariff increases.
The list of possible Chinese countermeasures against EU tariffs includes food, alcohol, and cars.
It is reported that China has initiated anti-dumping investigations on brandy and pork products imported from the EU.
Almost all brandy exported to China is produced in France, and Spain is the EU country that exports the most pork to China.
"France, Spain, and Italy are considered the countries most actively pushing for higher tariffs on Chinese electric cars," the report said. "Anxiety is spreading in Europe, with Spain expressing a desire for negotiation space and emphasizing the need to avoid a trade war."
Now it is the EU's turn to feel nervous.
China is no longer the same country it was over a century ago but is now the world's largest consumer market.
Many EU countries have various business interests in China, and if China retaliates comprehensively, the EU will face difficult times.
In the global automotive market, competition in the electric vehicle sector is particularly fierce.
China's leading position in this field is evident not only in technology and the supply chain but also in market share and policy support.
The Chinese government strongly supports the electric vehicle industry with subsidies, infrastructure development, and market access policies, greatly promoting the industry's growth.
In comparison, while Western countries are also actively developing the electric vehicle sector, they still face challenges in some key areas.
For instance, the US electric vehicle market is primarily dominated by Tesla, but it still relies on other countries for the supply chain and battery technology.
Europe, although home to traditional automotive giants like BMW and Mercedes-Benz, still needs to catch up with China in the electric vehicle sector.
Chinese electric vehicle companies continuously achieve breakthroughs in technological innovation.
From battery technology and drive systems to intelligent connected technology, Chinese companies have gradually mastered core technologies through independent research and development and cooperative development.
For example, BYD's blade battery technology has gained widespread attention globally and has become a significant benchmark in electric vehicle battery technology.
Moreover, Chinese companies demonstrate great flexibility and adaptability in market strategies.
By launching products that meet the needs of different markets, Chinese electric vehicle companies not only maintain a leading position in the domestic market but also actively expand into international markets.
Emerging Chinese electric vehicle brands like NIO and Xpeng have already started to establish a presence in Europe and the United States, gradually enhancing their brand influence and market share.
The global automotive industry's supply chain is highly complex and globalized.
China occupies a crucial position in this supply chain, particularly in battery materials and manufacturing.
As the world's largest producer and consumer of lithium batteries, China significantly impacts the global electric vehicle industry's development.
However, geopolitical factors are having a profound impact on the global supply chain.
Trade frictions between China and the US and policy conflicts between China and the EU challenge the stability of the global automotive supply chain.
In this context, countries are striving to find new supply chain partners to reduce dependence on a single market.
Faced with the complex landscape of the global automotive market, countries and companies need to adopt more diversified and flexible strategies.
Seeking cooperation in competition and achieving win-win outcomes through collaboration is key to responding to global market changes.
For instance, Chinese companies can enhance their technological level and market competitiveness through cooperation with European and American companies.
At the same time, European and American companies can gain more market opportunities and technical support through cooperation with Chinese companies.
In the context of increasingly fierce competition in the global electric vehicle market, countries and companies need to respond to challenges more rationally and pragmatically.
By achieving technological innovation and market expansion through win-win cooperation, they can stand undefeated in the global market.
Whether it is the United States or the EU, increasing tariffs is not a fundamental solution to the problem.
Only through open cooperation can the sustainable development of the industry and the prosperity of the market be truly achieved.
Comments