Why is Europe Investigating China's Electric Vehicles?
The European Union has opened an anti-subsidy investigation into Chinese-made electric vehicles. Brussels claims Chinese EVs are 20% cheaper because of state subsidies.
Beiing has rejected the allegations, calling the probe "protectionism".
The real issue for Europe (and the US) is that they expect and feel entitled to a higher living standard than the Chinese but without the productivity superiority required to justify it. In basic terms, higher wages for the same or less output. Although the cost of production is increasing in China as it develops, it is still greatly cheaper than in Europe - hence the move of German auto makers to China.
The challenge for Von der Liar is that continued subsidies for an inefficient manufacturing sector is not sustainable. The brand name advantage will only last a certain period, particularly as this is a new product category. In any case, there is little difference between production subsidies and tariffs - they both distort market forces.
In addition, as mentioned, China has one of the fastest growing markets for EVs. Europe will be shut out of it. The gap between the size of "Western" markets and the rest of the world is diminishing even for products categories like EVs. As such, the West may be shooting themselves in the foot.
Essentially this is a difference in governing systems. In a centrally planned model, governments will direct investment strategically and this is often labelled as "subsidies". In a capitalist system, the market drives investment. The West have successfully forced the world to adhere to their system for a century. But it is hard to see it compete against a strategic centrally planned governing system. Capitalism works when you are wealthy and can exploit colonies and the poorer nations - for every winner there are many losers, typically the colonies. The poorer nations can escape this trap through collaboration and strategic investments from governments - as is the story of China.
For people who are not aware, China has surpassed Japan as the world's largest car exporter. Most of the Chinese cars are EV cars so the trend will continue for many years to come.
Who buy chinese EV anyway? Surely these people are not scared of being burned alive from these cheaply made chinese junks
If thats the case, why thd world is worry about Chinese EV cars?
In fact, EV is only good for more developed countries, not for areas like Africa, South America or Sub-Continents.
There are still big market for combustion engine cars globally.
So, why the crying from EU?
@merrick6484 because they become uncompetitive when chinese's car flooding the world market
Chinese EVs flooding the world market while Modi can't even persuade Elon Musk to set up Tesla factory in India
The fact of the matter is German and EU car manufacturers cannot compete. There is a serious drop in demand for their vehicles price not withstanding. This us the reason they are complaining. Many of their top industries are experiencing significant decline
Blame America to blew up North Stream pipeline which caused major cost of energy and inflation in Europe.
While China and India enjoys relatively cheap energy.
Europe has long used punitive trade measures to selectively restrict other countries. Just look at the trade embargoes imposed on Australia that have gone on for generations as one example of a country singled out by the EU for economic damage.
EU subsidies a lot of their products too
when EU subsidies their Agriculture products, China says thank you.
Why not subsidies more, so Chinese can buy it cheaper.
The labor cost difference between China and Europe alone is more than 20% difference. Chinese labor cost is only one third of Europe. This alone would more than explain the 20% difference in cost between Chinese and European EVs. Lithium is the most expensive component in EVS and since China has access to more lithium than Europeans it is natural for the EVs to be cheaper. Since most raw materials are imported and finished in China the cost of raw materials would also be cheaper. Having all components of an EV manufactured in China also lowers the cost of supply acquisition. The cost of a finish EV in China is probably cheaper by more than 20% than European EVs.
I think China is doing a great job on the electronics i use daily, thank you people of China for all your hard work and great products
EU wants more expensive "overpriced" EV's.
Just not artificially subsidized ones that have an unfair advantage.
The government of Germany heavily subsidises its local Tesla's gigafactory. This is absolutely hypocritical!
Not junk Chynese
The question is, can europe match chinese ev prices even if the European governments provided subsidies?
This is just the prelude to EU imposing import taxes. EU is totally broke and it needs the money.
But eventually it's the customers that will pay the price just like the US. The cheaper the price of
EV's the better it is for the consumer. The best alternative will be for the EU to subsidize the EV sector.
China has the most expensive like BYD and cheapest electric cars . They know how to reach every categories of customers unlike the western EV companies that only make expensive cars
Countries like Japan are not selling EV in North America or Europe - because of profitability etc. In Japan and Asia - EVs are not uncommon. Palki is right - it is their protectionism - they are giving car makers sweet time to catch up.
During the past 15 years, China secured resources from africa, building highly efficient transportation routes, sea ports in african country, and directly connects to industrial bases at home. At home China had built all the infrastructures, power stations, which helps manufacture with their cost. It all adds up, What EU had been doing for the past 15 years? nothing.
Chinese EV companies are also forming JV with German auto companies.
Chinese evs sold in EU are not cheap, doubling the sale price in China.
Don't like don't buy it , this is freedom .
The world’s economic epicentre is shifting in an eastward direction
When they are competitive, they are talking "free market" all the time. When they can not compete, protectionism become a good thing suddenly.
This would be more disastrous for European car makers for sure. BTW, Tesla started the price reduction of electric vehicles
If Europe really wants to meet net zero emission target, then they must make electric vehicle cheaper (subside) the industry. And thank China for doing so.
Do Indians see what is happening with China? The same same things will happen to India if India get to grow their economy. Europeans like it when they are the one to benefit, but when someone else is doing better than them then they complain.and try to change the rules.
When u can’t compete u do these decisions , EU is full of hypocrisy.
EU raise the tariffs on the Chinese electric vehicles. That will force their citizens to pay more for the cars!
China can likewise impose tariffs on European cars so the Chinese will not buy them.
Do who will lose more
They are 20% cheaper because they don't charge a brand premium that's crazy. Brands like BMW and Mercedes are know to add over 50% to the price simply because it is zeGermans
Europe will close its markets to Chinese EVs, China will do the same to European EVs and flood the European market with Chinese EVs made by acquired European brands like Volvo and such. Europe is fu...ed
The made in China cars that have taken the most EU market share are actualy Teslas made in the the Shanghai Gigafactory
China EV is selling at a much high price abroad than domesticity, and the European is still complaining. So charge them more!