preface
On October 4, local time, the European Commission conducted a new round of tariffs on China's electric vehicle exports, and the results were passed.
It is determined that on the basis of the original 10% tax, the maximum tariff will be increased by 35.3%, which means that the EU will impose an ultra-high tariff of 45.3% on electric vehicles imported from China.
Among them, France's support is very clear, and Macron publicly expressed "support for tariffs on Chinese electric vehicles".
In the face of this result, China's Ministry of Commerce immediately responded and expressed strong dissatisfaction, and China firmly opposes such non-compliant and unreasonable "protectionist" measures taken by the EU.
On the fourth day of the European side's triumph, China's Ministry of Commerce issued an announcement to counterattack.
China's move was completely unexpected by the European side, especially Macron, who did not expect China to act so quickly.
So, what exactly is China's counterattack? Will it hit France directly in the sore spot? You know, during the EU vote, France can be described as the "vanguard" of the supporters.
The results of the EU vote were released, and China fought back
After the final vote of the 27 EU member states, a draft resolution on imposing tariffs on Chinese electric vehicles was passed, with a maximum of 45.3% tariffs.
During the voting process, France's representatives were the most emotional, taking the lead in favor of high tariffs on Chinese electric vehicles.
Previously, in the advisory vote, France was the supporter, firmly taking the lead in agreeing to impose high tariffs on Chinese electric vehicles.
France President Emmanuel Macron has also publicly expressed support for the European Commission's resolution, claiming that "European manufacturers must compete with Chinese automakers."
In the face of the EU's decision, China has fought back in its own way.
On October 8, China's Ministry of Commerce announced the implementation of temporary anti-dumping measures on import-related brandy originating in the European Union.
At the same time, China is currently studying measures such as raising tariffs on imported large-displacement fuel vehicles.
Xinhuanet On October 8, 2024, China implemented temporary anti-dumping measures on import-related brandy originating in the European Union
In fact, the above two measures were not decided by the Chinese side on the spur of the moment, and they were foreshadowed before, but they did not attract too much attention.
At the beginning of this year, the Ministry of Commerce announced that it would launch an anti-dumping investigation against EU-related brandy, but after the preliminary determination, the policy was not implemented at the same time.
As for the proposal to increase the tariff on imported large-displacement fuel vehicles, it can be said that the Chinese side is prescient, which is to deal with sudden accidents.
The original intention of this proposal is actually to counter the EU's initial unreasonable and unfair tariffs on Chinese electric vehicles.
At that time, it was not implemented immediately, mainly because China has always adhered to the principle of friendship and peace in the international market and established cooperative relations with other countries.
China is not willing to break the stable trade environment between China and the EU, and has repeatedly tried to resolve the tariff dispute through consultations to avoid a lose-lose outcome for both sides.
But as it stands, a negotiated solution to the tariff issue seems to be wishful thinking on the part of China, and the EU has finally decided to impose high tariffs on Chinese electric vehicles.
Some netizens analyzed that the purpose of this move by the European side is to put pressure on Chinese car companies to build factories in Europe with investment.
Since the EU is determined to break the friendly trade environment regardless of the stability of the China-EU trade market, China no longer needs to retain dignity for it.
China's Ministry of Commerce announced that after an investigation, it was found that there was dumping of brandy imported from Europe, which caused substantial damage to China's domestic related industries.
In order to ensure the stability and interests of China's industry, the Chinese side has decided to implement temporary anti-dumping measures on brandy originating in Europe in the form of a deposit.
China News Network, October 08, 2024, Ministry of Commerce: Implement temporary anti-dumping measures on import-related brandy originating in the European Union
Only on the fourth day after the EU announced that it would impose high tariffs on Chinese electric vehicles, China fought back, or directly hit the sore spot of many European countries, of which France should be the most affected.
China's counterattack may have been completely unexpected by Macron, who did not expect it to come so quickly.
The impact of China's counterattack
From 11 October, temporary anti-dumping measures were implemented in the form of margins for brandies exported from Europe, with the margin ratios of each company remaining at 30.6%-39%.
In this regard, some experts have analyzed that if the anti-dumping measures continue in the future, it may change the market pattern of domestic imported spirits.
It is worth mentioning that France should be the most severely affected by China's countermeasures this time.
After all, brandy is a landmark product of France's exports to China, and once temporary anti-dumping measures are implemented, France's wine chamber will suffer serious losses.
Not only will the wine industry directly reduce exports by 25%, but it will also lead to employment problems for at least 70,000 France.
It is reported that there are more than 4,400 farms in the France Cognac region, providing 85,000 jobs for the France people, but in the past two years, due to unstable trade, there have been business difficulties.
However, at this time, France took the lead in supporting the EU's tariffs on Chinese electric vehicles, and China's countermeasures at this time also directly affected France.
In response, the local administration of Cognac in France said that the cognac industry has been regarded as a victim of France and can be said to have been abandoned.
Observer.com, September 18, 2024, France's cognac industry is dissatisfied with the EU's tax on electric vehicles in China: You raise taxes, we become wronged
Once the EU decides on tariffs on electric vehicles in China, the tariffs could become permanent, and the end result could jeopardize the entire cognac industry.
In fact, before that, brandy producers, winegrowers and other related practitioners in the Cognac region of France held their first demonstration since 1998.
More than 500 people took to the streets to protest the EU's insistence on imposing tariffs on Chinese electric vehicle exports.
You know, a quarter of France's cognac exports come from the Chinese market, and even 60% of the sales of some local producers are exported to China.
At the same time, if China begins to implement tariffs on large-displacement fuel vehicles in the future, this will undoubtedly be a greater challenge for Germany, a world-renowned automobile manufacturing country, and will directly affect its domestic automobile market.
However, the EU has insisted on imposing tariffs against China and carrying out unreasonable policies under the guise of "trade protection", which has seriously affected China's interests.
In order to safeguard China's corresponding rights, China will also take certain measures to stop and counterattack, and China has always been firm in safeguarding its rights and interests.
epilogue
The stability of China-EU trade relations will enable China and European countries to achieve a win-win situation in cooperation, and will further promote friendly relations between the two sides, which is a good thing for everyone.
However, in order to cater to United States policy, the EU has tried its best to let China go to Europe with capital and technology for development, and increased sanctions on China's electric vehicles, so that Chinese product exports will add more costs, which obviously has only disadvantages and no benefits for China.
In order to safeguard China's due rights and interests, China will take necessary countermeasures to minimize the impact on China.
In the international market, China has always adhered to the attitude of friendship, peace, and common development, but there are always some people who are worried that China will "threaten" the development of the other side and further stumble China.
Only cooperation can achieve a win-win situation, promote the long-term development of both sides in the future, and make the world trade environment more stable.