The case for protectionist tariffs against Chinese cars
THE European Commission is currently investigating whether Chinese car imports benefit unfairly from government subsidies, and de Meo is one of the European industry execs firmly in favour of increasing tariffs on Chinese models sold on the Continent.
While his ‘letter to voters’ was more concerned with positive actions the EC should be taking to support its own industry, it refers obliquely to the tariffs issue. “With China ruling and the United States stimulating, Europe needs to invent a hybrid model. This means starting with a defensive approach to ensure that we get off to a good start, before seeking to conquer global markets,” he says.
But the case for protectionist tariffs is not universally supported by European car makers, especially those with products made in China, for whom the situation becomes much more complex.
While UK production of the nextgeneration all-electric MINI Cooper 3-door and MINI Aceman is slated to start in Oxford from 2026, production has already started in China at a new manufacturing plant in Zhangjiagang, Jiangsu Province, thanks to a BMW joint venture with Great Wall Motor. Exports will begin in early 2024.
Commenting on de Meo’s intervention, BMW’s CEO Oliver Zipse said: “We agree on many things, but we have a different opinion regarding the overblown potential risk of Chinesevehicle imports. We take a significantly more relaxed stance on that. Nobody can come into the European market overnight and just take it over. You also just have to embrace competition.”