For China’s booming EV industry, US and EU markets a tough nut to crack
Al JazeeraJun 25
Report: Chinese Carmakers Float 25% Tax on EU Rivals
Above: Xiaopeng Motors concept of integrating land and air vehicles is displayed during the Auto China Show 2024 on April 26, 2024 in Beijing, China. Image copyright: Emmanuel Wong/Contributor/Getty Images News via Getty Images
The Facts
Chinese media has reported that domestic auto manufacturers have requested that the PRC Ministry of Commerce subject high-powered cars from the EU to a 25% tariff.
The request, which reportedly came at a meeting attended by four Chinese and six European automakers, comes after the EU said it could raise tariffs on China-made electric vehicles (EVs) by up to 48%.
The Spin
Pro-China narrative
Free trade means fair trade, and the West has been wholly unfair in its treatment of Chinese vehicles. The PRC is leading the world in EV research and development, and there's great demand for their vehicles. China must retaliate against the EU's unfair move by instituting its own tariffs. The market, not the West, picks the winners and losers.
Anti-China narrative
Unlike the EU, China cheats the system by unfairly subsiding their automakers — allowing them to flood the market at rock-bottom prices. This is a matter of one country trying to snuff out the development of a domestic EV industry in another. Until China plays by the rules and stops giving their vehicles an unfair leg-up, these tariffs will remain in effect.
Metaculus Prediction
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