
By Li Panpan
(JW Insights) Sep 18 -- The German auto industry has expressed concern that the new anti-subsidy investigation the European Commission launched against electric vehicles from China will lead to higher prices and make EU trade policy further protectionist, reported the Chinese version of German media outlet Deutsche Welle on September 14.
Gabriel Felbermayr, president of the Austrian Institute of Economic Research, said ;::that while China may be hurt more by punitive tariffs, Germany will be unable to sustain it. Germany is not only a major exporter but also has extensive production bases in China.
For example, BMW's (BMW) iX3 models are all produced in China. If the products enter Europe and need to pay punitive tariffs, these additional costs will be borne by the company itself. A rising EU-China trade war will hurt both sides, but the German auto industry could take a bigger hit, said Gabriel in the Deutsche Welle report.
The European Commission stated that the investigation was initiated based on the Chinese government's extensive subsidy policy for the automobile industry, covering the entire value chain. The Chinese government provides subsidies in various ways, including granting grants, lowering loan costs, and direct state equity participation.
China's Ministry of Commerce responded that the EU's move would have a negative impact on China-EU economic and trade relations and considered it an act of protectionism, according to the Deutsche Welle report.
RELATED
-
Japan's automaker Mitsubishi Motors reportedly plans to end production in China due to sluggish sales and rising local brands
09-28 16:50 -
Chinese lithium battery material provider Shanshan plans a battery material building project in Finland with $1.34 billion
09-28 16:41 -
Chinese automakers establishes Automotive Electronics Industry Investment Alliance
09-28 16:08
READ MOST
-
ijiweiTalk Ep 291 :Key question in the IT industry:How to reduce the size of integrated circuits?
531608-29 17:34 -
ijiweiTalk EP294:Three essential elements for high-tech incubators
507109-06 17:00 -
ijiweiTalk EP292: AI chips are designed to provide solutions instead of problems.
474509-05 17:00 -
GACC: China's export of gallium and germanium-related items increases by 22.7% in July
454909-01 14:22 -
Huawei launches Mate 60 Pro to claim comeback to the 5G flagship phone market
435908-30 17:26