SANTIAGO DE COMPOSTELA: After Beijing warned that Brussels’ investigation into Chinese electric car subsidies would harm trade relations, the EU insisted on Friday( Sep 15 ) that its economy could withstand any retaliation from China.
Ursula von der Leyen, the president of the European Commission, announced the anti-subsidy research on Wednesday, accusing China of keeping auto rates” deliberately low by big state subsidies ,” putting Europe at risk of a trade war.
According to the investigation, the European Union may be attempting to defend Western automakers by levying harsh levies on vehicles it feels are being unfairly sold for less.
The Chinese Commerce Ministry retaliated against the EU’s” nude protectionism” the day after von der Leyen made his announcement, saying that the actions” will have a negative effect on China-EU economic and trade relations.”
When asked whether the eurozone’s economy may withstand any tariffs, economy commissioner Paolo Gentiloni seemed unmoved by the warning, despite the fact that trade with China accounts for around 2.5 percent of the global GDP.
I’m sure, but we need to take this problem significantly. Before a meeting of eurozone finance ministers in Santiago de Compostela, Spain, he said,” I don’t think there’s any particular justification for revenge, but it can always happen.
The investigation comes after France pushed Brussels to act more forcefully to protect Western market from rising Chinese and American risks.
Bruno Le Maire, the French finance minister, vigorously defended the EU’s power and refuted claims of corporatism.
We don’t need to be afraid of any region. Later on Friday, he told Bloomberg TV,” We are the EU. We are one of the most powerful economical countries.
It has nothing to do with isolationism, he continued, adding,” We are not here to start any kind of business war.”
Le Maire praised the United States and China for taking steps to safeguard their economies, saying,” It’s good news that Europe realizes the need to defend its economic pursuits.”
Due to its large, well-known brands’ greater exposure to the Chinese business than European companies, Germany, one of the largest automakers in the world, is more circumspect.
German Finance Minister Christian Lindner supported the investigation in remarks on Friday, despite Berlin’s concerns prior to the news.
” It needs to be looked at if there are any problems that it is unfair.” Rules govern global trade, and they naturally even apply to electric cars, he said.
The level of business with China” is differentiated among member states ,” according to Gentiloni.
Key German automakers like Volkswagen, Audi, Mercedes, and BMW have the largest global markets in China. European luxury conglomerates LVMH, Kering, and Hermes even frequently visit it.