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CDA
July 03, 2023
The avalanche of Chinese cars in Europe has put some countries on alert: France wants more tariffs, but Germany sees it as dangerous.
The massive arrival of chinese carsespecially electric ones, is being, in general, good news for the consumer, who has more purchase options and, above all, with more adjusted prices.
However, the European industry does not see it with the same eyes and considers that China’s automobile landing in the European Union it can be very dangerous for the sector.
Various media specialized in politics have reported that the imminent avalanche of Chinese battery-powered cars has set off alarm bells in Brussels, as it is considered that threatens the viability of the European electric car industry.
Germany fears reprisals for its brands operating in China
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The key is that China is ahead of Europe in the adoption of the electric car, lead battery technology (the main suppliers are from this country) and the prices of their cars are around 20 percent cheaper.
And that has generated great fear in France, which has called for an increase in tariffs on Chinese electric cars. Currently, cars sold in China from the European Union bear a 15 percent tariff, something that is not reciprocal with Chinese cars in Europe, which only suffer a 10 percent rate.
According to experts, without an increase in the current EU tariff, Chinese brands could see the European Union as a very attractive market and even engage in dumping practices (sell at a very low price with the aim of bursting the market and ending competitors).
France understands it that way, but Germany has positioned itself against him on this. The French country, automotively speaking, has a relatively small presence in the Chinese market, but German manufacturers, such as Volkswagen, Mercedes or BMW, consider that any measure to curb China in Europe could jeopardize their profitable operations in China.
