The first episode of EU DECODED focuses on the European Union (EU) legislative process and the critical crossroads facing the European automotive industry. The episode explores the issue of Chinese electric cars flooding the EU market, with sales quadrupling between 2020 and 2023. The European Commission (EC) estimates that Chinese electric cars could represent 17% of the market share next year. In response to this influx, the EC has decided to apply higher customs tariffs to rebalance the scales. The programme delves into how this decision was made, the pros and cons involved, and the potential future implications. Experts provide data and analysis on the subject, while European citizens share their opinions on the matter.
One of the key points discussed in the episode is the ecosystem of subsidies that Chinese companies receive, including cheap loans, subsidies, and tax cuts, all of which enable them to reduce the prices of their electric vehicles and gain a competitive advantage. To address this discrepancy and bring Chinese vehicle prices closer to European standards, the EC will be implementing tariffs ranging from 7.8% to 35.3%, in addition to the current 10% tariff. Bernd Lange, chairman of the European Parliament’s International Trade Committee, emphasizes the need to create a level playing field in the market by addressing illegal subsidies.
Despite concerns about a potential trade war, Lange remains optimistic, citing China’s opening of similar investigations into European products. He believes that the EU can present its case to the World Trade Organization if necessary. However, Germany, the largest automotive industry in the EU and one of the largest in the world, voted against the measure, along with four other Member States. The programme provides an in-depth look at how this decision could impact an industry that employs 13.8 million Europeans and contributes more than 7% to the EU’s annual wealth production.
The episode of EU DECODED highlights the complexities of the European automotive industry and the challenges it faces in response to the rise of Chinese electric vehicles in the market. By exploring the legislative process behind the decision to implement higher tariffs on these vehicles, the programme sheds light on the factors driving this decision and the potential consequences for the industry. Through expert analysis and insights from European citizens, viewers gain a deeper understanding of the issues at play and the various perspectives on how to address them.
The programme delves into the debate surrounding the impact of subsidies on Chinese electric vehicle prices and the need to create a fair competitive environment for European companies. By applying higher tariffs to Chinese vehicles, the EC aims to address the advantage that these subsidies provide to Chinese manufacturers. The programme also addresses concerns about a possible trade war ensuing from this decision, with differing opinions on the matter among key stakeholders. Through interviews with experts and policymakers, EU DECODED presents a comprehensive overview of the situation and the implications for the European automotive industry and the broader EU economy.
