The European Commission is reluctant to lower tariffs on China's electric vehicles, and this round of Sino-EU trade friction is destined to escalate. According to a report by the Observer on July 22, the European Union recently announced the preliminary results of the anti-dumping investigation of erythritol originating in China, imposing temporary tariffs of 76.9% to 235.6% on a number of erythritol producers in the mainland. However, compared with the proposed penalty results announced by the EU in late June, the tariff rate has been reduced.
Erythritol
It is reported that erythritol is mainly used as a sugar substitute for food and beverages. Because of its high sweetness, low calorie, small molecular weight, easy absorption and good human tolerance, it has quickly become a popular sugar substitute product in the market. The reason given by the EU's tariffs this time is that the price of erythritol exported by China to the EU is not determined by the market, but by state intervention.
It's hard not to be reminiscent of the EU's recent crackdown on China's electric vehicles, which fully illustrates that the EU's protectionist thinking will spread to more areas. What is certain is that the EU's approach is bound to harm others and not to its own interests. Excessive trade protectionism will inevitably lead to a lack of competitiveness in the EU market and a lack of innovation motivation for enterprises, and EU consumers will ultimately pay for it.
Von der Leyen
In addition, China will certainly not remain indifferent to the EU's unreasonable suppression. At present, the economic and trade friction between China and the EU is intensifying, and China's countermeasures will inevitably increase. On the same day that the European Union imposed ultra-high tariffs on China's erythritol, the Ministry of Commerce of our country announced that it would impose anti-dumping duties on imported stainless steel billets and stainless steel hot-rolled plates originating from the European Union, Japan and South Korea.
Of course, this countermeasure is more about clarifying its attitude and stance to prevent the EU from escalating its stance. However, it can be expected that the EU will not stop suppressing China's erythritol after it has cracked down on China. In this regard, it is necessary for Chinese companies, which have been deeply involved in the European market, to take measures to actively respond.
EU-China relations
First of all, in the face of external variables, the most effective way to deal with them is to improve their own competitiveness. For example, improve product quality, increase R&D investment, and ensure that we have a technological advantage in the market. Taking erythritol, which was suppressed this time, as an example, new sweetener products can be developed. Secondly, optimize the industrial structure, reduce costs and increase efficiency, and ensure that enterprises can still stand firm and achieve development in a complex competitive environment.
In addition, the EU is now determined to follow the line of trade protectionism and has completely ignored WTO rules, so it is not realistic to push the EU to reopen its markets through dialogue and communication. Therefore, for Chinese companies, they need to open up new markets outside the EU, which can not only reduce their losses in the short term, but also strengthen their ability to resist risks in the long run.
European Union
Taking erythritol as an example, Ternary Biotech, which was subject to tariffs this time, said that it would expand its development efforts in emerging markets such as China and Southeast Asia. In addition, China's electric vehicles are also actively deploying overseas. Taking BYD as an example, which we mentioned earlier, it has invested one billion US dollars to build a factory in Turkey, which can not only avoid the tariffs imposed by the European Union, but also actively explore the market in Central Asia, Africa and other regions by taking advantage of Turkey's geographical advantages and export convenience.
In addition to Europe, Chinese companies should also be wary of Trump's comeback, and the United States has further pursued protectionist trade policies. Mr. Trump's earlier call for tariffs on all Chinese exports to the United States market cannot be dismissed simply as election language. In Trump's style, it is indeed possible to make a similar decision.
In short, in the era of globalization, the development and growth of all walks of life in China will inevitably arouse the vigilance of the United States and the West. The United States and the West, which advocated free trade in the past, have raised the stick of trade protectionism, which is an inevitable difficulty for China's industrial upgrading. Relying on the huge domestic market and the rapid development of emerging markets, Chinese enterprises will definitely be able to continue to achieve development under the encirclement and suppression of the United States and the West. However, the trade protectionist approach of the United States and the West will only make them further lose their competitiveness, which is an extremely short-sighted behavior, and in the end they will also pay the price for their wrong choices.