As the year 2024 draws to a close, the ongoing trade tensions between the European Union (EU) and China, particularly regarding electric vehicles (EVs), continue to dominate discussions. On December 31, 2024, Wei Jianguo, a former vice-minister of commerce in China, urged the EU to adopt a mutually beneficial approach to resolve trade issues related to anti-subsidy cases against Chinese EVs. Wei criticized the EU's inconsistent tariff stance, suggesting it is heavily influenced by the United States' position on China, and emphasized that imposing tariffs has historically failed to address trade problems while burdening consumers and harming economic cooperation [a2008d5].
This call for a more collaborative approach comes in the wake of significant tariffs imposed by the EU, which have already impacted Chinese EV exports. The EU's tariffs, which reached as high as 35.3% on certain Chinese EVs, were implemented on October 4, 2024, leading to a dramatic 42% decline in the value of China's electric vehicle exports by November 2024 [c0f4497f]. The Canton Fair held in October showcased various Chinese EVs, attracting international buyers despite the looming tariffs, highlighting the competitive pricing of models like a coupe priced at €40,000 [c728f787].
The Chinese Ministry of Commerce has expressed hope for concrete steps from the EU regarding price commitment plans for Chinese EVs, indicating a desire for dialogue and consultation to stabilize economic relations [a2008d5]. Zhou Mi from the Chinese Academy of International Trade echoed this sentiment, stressing the importance of maintaining strong economic ties, especially as the EU seeks to attract Chinese EV technologies [a2008d5].
The International Energy Agency has projected that global EV demand will reach 45 million units by 2030, underscoring the growing significance of the EV market [a2008d5]. In 2023, Tesla accounted for 28.6% of China's EV exports, further illustrating the competitive landscape [a2008d5]. Despite the challenges posed by tariffs, trade between China and the EU grew by 1.3% year-on-year, reaching 5.09 trillion yuan ($697.34 billion) from January to November 2023 [a2008d5].
As the EU navigates its trade policies, the recent developments at the Canton Fair and the ongoing dialogue between Chinese officials and EU representatives highlight the complexities of international trade in the EV sector. The need for a balanced approach that fosters cooperation rather than conflict is increasingly evident as both sides work towards a sustainable future in the global automotive market [c728f787][c0f4497f].