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As China and the EU continue to try to resolve bilateral trade friction over additional tariffs on Chinese imported electric vehicles (EVs), a German scholar warned that the tariff may backfire on the EV industry as it could disrupt the global trade order.
Peter Sachsenmeier, member of the National Academy of Sciences and Engineering of Germany and professor at Oxford University, made the remarks during an interview with the Global Times on Wednesday, calling for efforts from China and Europe to enhance trade collaboration.
Given the impact of additional tariffs on normal international trade, Sachsenmeier noted that its short-term impact is overestimated while the long-term impact is underestimated.
Additional tariffs may not bring the expected industry protection and more employment overnight, however in the long term, the tariff “destroys our entire global trading order,” Sachsenmeier said.
China and the EU were reportedly nearing a solution over eliminating tariffs on Chinese EV imports into the bloc, German broadcaster n-tv reported on Friday, citing Bernd Lange, chair of the trade committee of the European Parliament.
Yuyuan Tantian, a social media account affiliated with state broadcaster CCTV, said in a post on November 16 that Chinese and European teams have reached a “technical consensus” in recent EV talks, after in-depth discussions on the specifics of the price commitment plan on China-made EVs.
Sachsenmeier pointed out that the economic similarity between Europe and China lies in their dependence on exports and the benefits they derive from globalization. He added that if globalization is hindered, both sides may face challenges, as exports are an important guarantee for other costs.
“I think Germany in particular realizes this similarity and you can see in the political reactions that they realize our economies are totally intertwined, including the logistics chains and supply chains,” said Sachsenmeier.
During an interview with the Xinhua News Agency in September 28, 2024, Hubert Aiwanger, deputy minister president of the German state of Bavaria, said that his state is opposed to the EU imposing punitive tariffs on Chinese EVs.
Hildegard Mueller, president of the German Association of the Automotive Industry, also said that the extra duties “are not suitable for strengthening the competitiveness of the European automotive industry,” Xinhua reported on July 4, 2024.
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Publish date : 2024-11-27 07:09:00
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Author : love-europe
Publish date : 2024-11-28 07:28:19
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