Suara.com – Some time ago, the European Union Council held talks with the Chinese government regarding electric cars or Electric Vehicles (EVs) which were sold so cheaply that they endangered European production.
The dominance of the world automotive industry, especially for electric cars, is currently dominated by China, after several decades the world automotive industry was dominated by manufacturers from Europe, Japan and the United States.
The European Union has now implemented additional tariffs on 20 types of steel and stainless steel products produced in China and has set import quotas as a step to protect its market until the end of 2024. It has also stated that Chinese EV products receive government subsidies.
European Union flag. As an illustration (Pixabay)
One of the advantages of Chinese automotive factories that other countries' manufacturers cannot match is cheap production costs.
This situation is a problem for the European Union. Currently, as many as 26 Chinese electric car manufacturers are planning to enter the German market by 2025.
Quoted from the Antara news agency, China said it had exported more than half a million electric cars worldwide in the first half of 2023. This figure is equivalent to growth of 160 percent compared to the same period in 2022.
Chinese Foreign Ministry Spokesperson Mao Ning said his country's automotive products could be sold at lower prices because of efficient production costs, and not due to government subsidies as alleged by a number of parties.
“Division of work and mutually beneficial collaboration are the hallmarks of the automotive industrial chain. The development of our country's automotive industry is so rapid that it has produced cost-effective and high-quality products,” explained Mao Ning when delivering a routine statement to the media in Beijing, China on Tuesday (20/2/2924).
This statement also responds to the European Union's investigation into allegations that Chinese electric cars are being sold at low prices in European countries due to government subsidies.
Currently, the United States is considering limiting imports of Chinese smart cars and other related components.
“Every one in three cars exported from China is an electric car, which contributes significantly to the world's environmentally friendly and low-carbon transition,” continued Mao Ning.
Beijing has previously expressed objections to the European Union's plan to implement a Carbon Restrictions Adjustment Mechanism that would set tariffs of 20-35 percent on goods with high carbon prices, such as steel and iron ore.