EU urged to scrap protectionist path targeting Chinese NEVs
The EU should seek cooperation with China on new-energy vehicles (NEVs) so as to tap the great complementarities between the two vital trading partners, rather than taking a protectionist path, Chinese observers said on Monday, commenting on the latest development of opinions on NEVs within the EU.
The comments came as China’s commerce minister is reportedly expected to start a visit to Europe this month over the European Commission’s investigation into Chinese NEVs.
Experts said that it is wiser for the EU to work with China on the issue so that the two trade partners can tap their strong economic complementarities, noting that Chinese NEVs are a contributing, not an undermining, factor for the EU’s climate goals.
Manfred Weber, a German lawmaker heading a center-right European party in the European Parliament, criticized the EU climate policy and accused China of profiting from it, according to German news outlet DPA on Sunday.
Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times on Monday that backpedaling on the path toward a green, low-carbon future, such as using combustion engine cars with environmentally friendly fuels, is not in the best interests of the EU.
“Cooperation between Chinese and EU industries is the right way for Europe to get out of its conundrum, and concerns can be ironed out by dialogue and cooperation by the two sides,” Cui said, noting that the Chinese side is willing to negotiate with its European counterparts to reach reasonable terms concerning cooperation on NEVs.
Currently, Chinese NEVs mainly arrive in the European market as finished goods but industry insiders said that Chinese carmakers can also consider setting up plants in the EU to localize production and bring greater benefits to the local community, but they face issues such as the EU’s strict environmental threshold.
“The relative lead enjoyed by Chinese EV makers is the result of market-driven competition amid an overall transition by countries toward green transportation vehicles,” Yang Chengyu, an associate research fellow at the Institute of European Studies of the Chinese Academy of Social Sciences, told the Global Times on Monday. “China and the EU must not allow the dispute over NEVs to affect and disrupt normal economic and trade cooperation between the two sides.”
The development of China’s NEV sector came from its strong innovation capability, complete manufacturing system and strong supply chains, Yang said.
“Chinese EV makers can provide proof to EU investigators to address their concerns on subsidies during the production process while maintaining their advantages in higher cost-performance,” Yang said.