In recent times, trade friction between China and the European Union has been in a state of suspension.
During this period, China has actively engaged in negotiations with the EU, striving to find solutions to resolve the conflict between both sides.
To ease the situation, China decided to conduct inspections on electric vehicle products exported to the EU, allowing those that pass the inspection to be released first in an effort to resolve the issue as quickly as possible.
However, the EU has not officially started negotiations with China to prevent the escalation of losses on both sides.
Nevertheless, within the EU, news has emerged showing the EU's plans to take a harder stance against China, with France playing a key role as a proponent.
It is worth exploring why France holds such a position.
Since the post-pandemic period, the relationship between China and the EU has gradually returned to normal. As countries began to reopen, trade exchanges resumed as well.
As early as February this year, China began cooperation with Germany to help the German economy recover.
By May, China reached a cooperation agreement with the UK, resulting in closer trade ties, and a visa-free agreement accelerated personnel movement, boosting the development of bilateral trade between China and the UK.
However, just as relations between China and the UK were becoming more harmonious, discord began to surface between China and the EU.
The root of the problem lies in the EU's discussions about the export of Chinese electric vehicles.
Chinese electric vehicles, with their high quality and low prices, have created competitive pressure in the EU market.
As the world's second-largest market for new energy vehicles, China’s electric vehicles have also secured a considerable market share globally.
Such strong competitiveness has put significant pressure on the EU, leading the EU to initiate anti-subsidy investigations into Chinese electric vehicles and consider imposing high tariffs to protect its domestic automotive industry.
Even so, China's electric vehicles still maintain a strong competitive edge. Even if the EU imposes tariffs, it would be difficult to prevent the growth of Chinese electric vehicle exports.
To avoid further escalating tensions, China decided to initiate dialogue and negotiations with the EU.
However, unexpectedly, before formal negotiations began, the EU revealed plans to potentially impose sanctions on China.
China immediately issued a warning, but the EU did not back down. Instead, it presented several conditions that China could not accept.
Previously, China and the EU had discussed the issue of electric vehicle subsidies and taxes and reached a certain consensus on the matter.
However, with countries like Germany proposing amendments, the EU ultimately decided to impose an additional subsidy tax, which violated the original agreement.
In this process, France, as one of the main initiators, suggested taking a hardline approach toward China and pushed the European Commission to initiate countermeasures.
However, this proposal was not universally supported within the EU, with countries like Italy and Switzerland opposing it.
The competitive advantages of Chinese electric vehicles are clear.
Chinese electric vehicles are not only affordable and high in quality but also have a large market demand, making them leaders in the global electric vehicle industry.
Electric vehicle manufacturers in the United States and other Western countries, whether in terms of technology or quality, find it difficult to compete with Chinese electric vehicles, which is also the source of concern for the US and Europe regarding China's electric vehicles.
To protect their own interests, the US, in conjunction with France and other countries, launched a strike against China.
In response, China decided to take countermeasures to protect its own automotive industry.
China imposed tariffs on certain EU products, including car components, one of which is car dismantling bolts.
This measure caused a factory producing bolts in Italy to halt operations and lay off workers. Italy strongly protested, demanding that China stop this action.
In fact, China and the EU had already negotiated on this issue back in April and reached an agreement to impose tariffs on certain European components during April and May to create a win-win situation.
However, Germany and France proactively proposed amendments to the agreement, requesting an extension of the tax period, which led to widespread confusion.
Germany had passed half of the proposal and expressed a desire to modify the remaining part. However, this proposal clearly did not take into account the balance of interests, especially the impact on countries like Italy.
Faced with China's countermeasures, France was the first to propose discussing alternative solutions.
However, no viable alternatives have been proposed to date. Some French officials have even stated that, under the current circumstances, they must defend their own interests.
This reflects France’s dilemma in this event, especially in the revised proposal, where France seems to have become the main victim.
In fact, France’s role in this incident is complex, as it is not only directly related to China’s electric vehicle policies but also involves the interests of other countries within the EU.
France's position may have a negative impact on the entire EU automotive industry chain, especially harming the interests of countries like Germany and Italy.
This has also triggered opposition from other European countries, with some even proposing to distance themselves from France to avoid further decline in the European automotive industry.
The complexity of the China-EU electric vehicle trade dispute exceeds expectations.
After China and the EU reached a preliminary agreement, repeated proposals and amendments from individual countries have made the future of this agreement uncertain.
Although China’s countermeasures have directly affected some European countries, their purpose is to ensure fair trade and normal market competition.
At the same time, internal divisions within the EU and France’s hardline stance have, to some extent, exposed the EU’s internal divisions and decision-making dilemmas when facing international trade disputes.
For China, resolving this trade dispute is not an overnight task.
Despite facing pressure from Europe, China insists on solving the issue through dialogue and negotiation, maintaining stable China-EU relations.
Whether the EU can adopt a more rational and flexible stance when facing China’s countermeasures will remain a key factor in the future development of relations.
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