Chinese officials at the Summer Davos Forum repeatedly outlined the international situation of electric vehicles. Premier Li Keqiang of the State Council stated at a symposium that China’s competitiveness does not come from subsidies or protections but from gradual efforts and achievements made step by step in fair competition, involving various enterprises including foreign ones. Wan Gang, Chairman of the China Association for Science and Technology, advocated that Chinese electric vehicle companies should consider investing in Europe to enter the local industry chain. In addition, foreign media reported adjustments by the European Union to the additional tariffs on affected Chinese automakers Geely and SAIC.
Xinhua reported yesterday that on Tuesday (25th), Premier Li Keqiang attended a symposium with foreign business representatives at the 2024 Summer Davos Forum. He emphasized that China’s competitiveness stems from efforts made step by step in fair competition, not from subsidies or protections, including contributions from foreign enterprises. He also welcomed investments from all parties to deepen their engagement with China and share in China’s dividends from high-quality development.
During the meeting, Li Keqiang discussed the current economic situation and economic policies in China, highlighting that the effects of policy measures are becoming evident and expressing confidence in achieving the annual economic and social development targets, with the capability to sustain long-term positive trends in the Chinese economy.
Bloomberg: EU Slightly Reduces Tariffs on Chinese Electric Cars
The European Union recently announced additional anti-subsidy tariffs on imported electric cars from China to counteract alleged Chinese government subsidies affecting the battery and electric vehicle industries, which harm the competitiveness of local industries in the EU. In May, the United States announced new tariffs on Chinese electric cars, computer chips, and other products.
Bloomberg reported yesterday, citing sources familiar with the matter, that after receiving more information from affected electric vehicle companies, the EU slightly adjusted tariffs on Chinese imported cars. This included reducing tariffs on SAIC Group from 38.1% to 37.6% and on Geely from 20% to 19.9%, while BYD’s remained unchanged at 17.4%.
Temporary tariffs will be implemented on July 4th, with final tariffs scheduled for November. Currently, several automakers and EU member states are pushing for negotiations between the EU and China. The Chinese Ministry of Commerce announced last Saturday that negotiations would be initiated regarding the EU’s imposition of tariffs on Chinese electric cars.
Wan Gang, Chairman of the China Association for Science and Technology, responded at the forum yesterday to trade frictions in the recent electric vehicle market involving the EU and the United States, stating that electric vehicles represent a trend in development that cannot be stopped. He emphasized the importance of staying firm on this path and not slowing down due to temporary setbacks, suggesting that new energy enterprises should start investing in Europe. Through such investments, Chinese companies can integrate into local industry chains and expand their globalization efforts. He also predicted that this year, China’s electric vehicle production is expected to surpass the milestone of 10 million units.
Liu Zhenmin:
US-Canada Electric Car Tariffs Unfavorable for Climate Cooperation
Furthermore, China’s Special Envoy for Climate Change Liu Zhenmin addressed issues related to China’s new energy vehicles during a thematic session. He pointed out that over the past year, China and the United States have actively promoted bilateral climate cooperation. The imposition of tariffs by the United States on Chinese electric cars represents a unilateral measure that is unfavorable for climate change cooperation. He stressed that China does not want the United States to bring this issue into multilateral climate change negotiations, as it could jeopardize the entire framework of multilateral climate change cooperation. Regarding the prospects for climate cooperation, Liu indicated that next year, geopolitical tensions might intensify.
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