EU warns China against ‘dumping’ EVs in Europe
EU warns China against ‘dumping’ EVs in Europe
cross-posted from: https://lemmy.sdf.org/post/38609043
European Commission vice-president Teresa Ribera has warned China that the EU will not tolerate “dumping” of low-cost Chinese electric vehicles in Europe. And she rejected the idea that the EU should accept “cheap equipment” to help member-states to reach their decarbonisation goals.
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“There is this assumption that counting on cheap equipment could be good to boost the potential of new developments and new decarbonisation pathways in the European market that could be beneficial. And there may be truth on one side, but as you also know, it may be difficult in terms of how it could impact on the capacity to ensure a level playing field. So we cannot accept any type of dumping practices.”
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Trade figures on Monday showed that China’s exports continued to grow in June, jumping by 5.8 per cent compared to a year earlier, despite US tariffs of about 55 per cent on Chinese goods. China ended the first half of 2025 with a record trade surplus of about USD586 billion.
Analysts suggest that Chinese manufacturers have been front-loading exports to the US in case tariffs rise higher in the coming months. But exports to other parts of the world, including the EU, have also continued to rise.
IMO this is a tough one.
Because Chinese cars are selling in EU for about twice the amount they are sold in China!
So it doesn't seem to me they are dumping them, so the question is how China can make cars so much cheaper than we can?
We know they have incentives in China, but the tariffs were designed to compensate for that.
The Xiaomi SU7 is allegedly comparable to a Porsche Taycan. The SU7 even beat the Porsche in a speed test! But it cost less than a fifth in China.
So if they chose to export that to EU, they could sell a competitor to Porsche at less than half the cost!
One explanation may be that Porsche is one of the brands with the highest profit margins in the world.
Allegedly the competition in China is very tough, and there is speculation that only a few brands will survive the current price war.
That makes exports an obvious opportunity to actually make money.
As I see it, China is maybe expanding their price war to EU, and as is normal in such situations, some brands have to die before this ends.
This is normal capitalism 101, a principle we demanded China to follow to get access to our market.
But only now that we may become a victim we complain about it?
Obviously I hope EU car industry can go on and compete, but to expect any less from China with 1.3 billion citizens, than what happened when Japan became an industrial force, is very very naive. China is Japan times 10, except actually that one goes to 11!
So yes we do have to be careful and increase trade in a way that isn't so disruptive it destroys our own industries.
This is an overly simplified narrative, and it is not 'normal capitalism'.
Chinese carmakers benefit from unfair state subsidies to say the least, and there has been strong evidence for forced labour conditions in Chinese companies. Brazil sued China carmaker BYD over 'slave-like' conditions just to name a more recent example. The Brazilian prosecutors say two of BYD contractors in Brazil (where BYD opened a factory) were responsible for human trafficking and conditions "analogous to slavery" at a factory construction site in the country.
China is also heavily opposing any transparency, including the supply chain law introduced (and watered down in the meantime) by the EU. The conclusion here is that China is not a trusted partner, at least not under the current government.
Did coerced labour build your car?