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Recently, China-EU relations have been a bit delicate, and the smell of gunpowder has become stronger. The fuse of the matter, you may have heard, is that our domestic electric vehicles are selling too hot in Europe, which has moved some people's cakes, so some people have started to do things.
Isn't it a good thing, you may ask, that electric cars sell well? How did it become the fuse? To put it bluntly, it is still a question of benefit distribution. European traditional car companies, especially Germany, France and other old automobile powers, see our domestic electric vehicles conquering the city, market share continues to expand, naturally not a taste.
This is like, originally you set up a stall in front of your house to sell biscuits, and the business was booming, but suddenly one day, a competitor came, also selling biscuits, and the price was cheaper than yours, and the taste was not bad, the key is that people also used Internet marketing, attracting a large number of young customers. You say, can you not be in a hurry?
This is the mood of traditional European car companies now. What to do? The solution they came up with is to unite and set up trade barriers for our domestic electric vehicles, to put it bluntly, they want to keep our cars out of the European market by raising tariffs.
In this trade protection action against China's electric vehicles, France danced the most. France President Emmanuel Macron, a political star who has long regarded himself as a "reformer", has been unusually tough this time. Not only did he publicly support the EU's tariffs on Chinese electric vehicles, but he also made harsh remarks, claiming that European manufacturers must compete with Chinese automakers.
Macron's statement can be said to be quite "politically correct", but it also exposes the anxiety and uneasiness of the France government in the face of China's rise. France, once the hegemon of the European continent, has gradually been overtaken by Germany economically, and its influence on the international stage is much less than before. In the face of China's rapid development, the France government clearly felt an unprecedented pressure, and this pressure eventually translated into a protectionist impulse.
In the face of the EU's menacing trade protection measures, China will certainly not sit idly by. Soon, China's Ministry of Commerce offered the first hammer of countermeasures: the imposition of temporary anti-dumping measures on brandies originating in the European Union.
This "anti-dumping duty" can be described as precise and ruthless, and directly hit France's soft underbelly. France is the world's largest producer and exporter of brandy, and China is an important export market for France's brandy. This trick continued, and the brandy industry in France was suddenly full of mourning.
The France Cognac Industry Authority, the agency that represents the interests of the France brandy industry, immediately jumped out in protest, claiming that it had become a "victim" of the France government. They accuse the France government of sacrificing the interests of the France brandy industry in order to curry favor with the EU politically.
The France government has indeed shot itself in the foot this time. They originally wanted to protect the interests of their own car companies by imposing tariffs on Chinese electric vehicles, but they provoked a strong Chinese counter-attack, making France's brandy industry a scapegoat.
The word "victim" is not an exaggeration when used by the France Cognac Industry Authority. China's anti-dumping duty is a real blow to France's brandy industry.
France's brandy, especially cognac, has always been popular in the Chinese market and is regarded as a symbol of high-end wine. However, with the implementation of China's anti-dumping duties, the price advantage of France brandy into the Chinese market will no longer exist, which is undoubtedly a heavy blow to France's wine producers and farmers.
There are thousands of wine producers in France, as well as a large number of farmers, who depend on the brandy industry for their livelihood. The shrinking Chinese market means that they will face the risk of unsalable products, reduced income, and even unemployment.
France farmers are not good at stubble, and historically, they have often taken to the streets to protest and demonstrate because of various problems, such as agricultural subsidies and agricultural prices, creating a lot of trouble for the France government.
This time, in the face of the impact of China's anti-dumping duties, the anger of France farmers can be imagined. They have begun to organize protests demanding that the France government take steps to protect their interests.
The France government is now in a dilemma.
On the one hand, they know that China's anti-dumping duties are the inevitable result of the trade war provoked by the France government, and if they relented now and lifted the tariffs on Chinese electric vehicles, wouldn't it be disgraceful?
On the other hand, they also know that if they continue to clash with China and the trade war escalates, the France brandy industry, as well as other industries that trade with China, will suffer greater losses, and at that time, the France economy may also suffer.
What makes the France government even more troublesome is that this trade war has also exposed the contradictions and differences within the EU.
France brandy is "sanctioned", and the EU is not monolithic. Some countries talk about unity, but in action they are making their own calculations.
Germany, the EU's "bellwether", is actually not interested in the trade war led by France. Germany has a well-developed automotive industry and strong ties with China's economy, and they know very well that if the trade war escalates, Germany's car companies will lose a lot.
Therefore, when discussing whether to impose tariffs on Chinese electric vehicles within the EU, the Germany government has always been opposed and advocated solving the problem through dialogue and consultation.
But France apparently did not listen to Germany's "advice" and insisted on provoking this trade war.
Now that France brandy is "sanctioned", Germany is probably secretly happy in its heart: let you be impulsive, this time you suffer, right?
In addition to Germany, EU countries such as Italy and Spain are also cautious about this trade war. They fear that the trade war will not only hurt the EU's economic interests, but also damage China-EU relations, and ultimately outweigh the losses.
This disagreement within the EU is very embarrassing for the France government. Originally, he hoped that EU member states could unite and jointly confront China, but they found themselves as "bare-bones commanders".
What worries the France government even more is that if the EU cannot reach an agreement on trade policy with China, the EU's image of "unity" will be seriously damaged, and the EU's international influence will be greatly reduced.
The EU is now at a crossroads, whether to continue to stand united against China, or to seek win-win cooperation with China? This is a question that requires serious consideration.
China has never taken the initiative to stir up trouble, but it is not afraid of it. In the face of the EU's protectionist acts, China has made it clear that it will take all necessary measures to safeguard its legitimate rights and interests.
At the same time, however, China has also shown goodwill, emphasizing that China and the EU share a wide range of common interests, and hopes to properly resolve trade disputes through dialogue and consultation to achieve mutual benefit and win-win results.
The success of China's electric vehicles in the European market is due to real technological innovation and cost advantages, rather than government subsidies.
China's electric vehicle industry, which has developed rapidly in recent years, has continuously improved its technical level and declining costs, and has the strength to compete with international giants.
The Chinese government has always encouraged Chinese enterprises to "go global" and participate in international competition, but it also requires Chinese enterprises to abide by international rules and compete fairly.
China hopes that the EU will abandon the Cold War mentality and ideological bias, view China's development objectively and rationally, and not regard China as an "imaginary enemy".
China and the EU should strengthen dialogue and cooperation to jointly safeguard the global free trade system, instead of being suspicious of each other and suppressing each other.
There are no winners in a trade war. A full-blown trade war between China and the EU would end up hurting both sides and hurting the global economic recovery.
History has proven that win-win cooperation is the only way to solve problems.
China and the EU should work together with an open mind and a pragmatic attitude, strengthen dialogue and cooperation, and jointly safeguard the global free trade system for mutual benefit and win-win results.
The trade dispute between China and the EU, on the surface, is a contest between electric vehicles and brandy, but in fact, it is a game between major powers in the context of globalization.
This game is not only about economic interests, but also about the right to formulate international rules and the reshaping of the global industrial chain.
China is no longer a weak country that can be manipulated by others, and we have the ability and determination to safeguard our legitimate rights and interests.
But we also believe that win-win cooperation is the trend of the times. China and the EU should work together to build an open world economy and inject more stability and positive energy into the world economy.
Now, the ball, kicked at the feet of the EU. Whether they choose to toast to China or choose to shoot, let's wait and see.
Information sources:
Daily Economic News - The EU's proposal to impose countervailing duties on China's electric vehicles was approved with a maximum tax of 45.3%, and Mercedes-Benz, BMW, Geely and other car companies spoke out against it!
Global Network - China has imposed temporary anti-dumping measures on EU brandy, and the France brandy industry is nervous