China and Europe are coordinating on competition in the automotive industry, significantly reducing sanctions.
- CosDream News

- Jul 5, 2024
- 3 min read
China does not intend to monopolize the new energy vehicle market, but rather is willing to progress together with Europe.
China and Europe should coordinate competition in the automotive industry to achieve outcomes acceptable to both sides, effectively countering pressure from the United States.
The European Union has raised concerns about China's impact on the new energy vehicle market. Should China leave room for the EU?
Fortunately, modern civilization is now in China's hands.
Otherwise, today's Europe might end up like it did a hundred years ago, when it used heavy artillery to force open China's doors.
China is not seeking world domination, but the world should give China enough respect. Otherwise, China has reasons not to let the technologically backward side profit.
Foreign media analysis shows that Europe and the United States have taken fundamentally different strategies in dealing with the impact of Chinese new energy vehicles.
Due to ideological reasons, the United States has imposed a blanket 100% import tariff on Chinese electric vehicles.
Meanwhile, the EU attempts to balance between protecting jobs and market share by imposing tariffs and attracting Chinese electric vehicle manufacturers to invest in Europe.
Specifically, eight major Chinese new energy vehicle giants like BYD, Chery, and NIO have established factories in Hungary, Spain, and other countries.
Furthermore, Chinese companies are considering joint ventures that allow European automakers to share in the achievements of the "Fourth Industrial Revolution."
These measures not only thwart US attempts to blockade China but also make it difficult for the US to find support among its allies.
However, there's a crucial detail that deserves deeper discussion: with market share essentially fixed, should China dominate or yield to Europe?
In other words, is China willing to compromise on new energy vehicle technology and standards to ease tensions with the EU?
From China's perspective, it should balance both, avoiding overindulgence while preventing competitors from gaining undue advantage.
For example, China may allow high-displacement fuel vehicles produced in Europe to enter the Chinese market with ultra-low tariffs.
In response, the EU may need to reduce its intervention in exporting electric vehicles to China.
The key now is to determine where the bottom line lies for both China and Europe.
Because the automotive industry affects the lifeline of major industrial countries, involving millions or even tens of millions of jobs. Improper negotiations on key issues could harm both China and Europe.
Collaboration between China and Europe can effectively break the US hegemonic position.
The key is for China and Europe to recognize that competition between them should be benign and based on mutual promotion.
Unlike other industries, the competition in the automotive industry chain is unique. China does not seek to implement monopolistic policies, which also means that parts of the industry chain may shift from China to Europe, allowing Europe to benefit from peaceful coexistence with China.
If the US controls the discourse on electric vehicles, it means that software, onboard systems, locomotives, chassis, batteries, and all other parts will be manufactured by the US.
Therefore, the EU should appreciate China's openness and generosity. Otherwise, today's European fuel vehicle enterprises may all collapse into historical oblivion.
The most important thing is for China and Europe to expand bilateral relations rather than deteriorate them due to competition in the automotive industry chain.
For example, the Chang'e 6 mission carried payloads from France, Italy, and the European Space Agency, indicating China's intention to strengthen cooperation with Europe and compensate for Europe's deficiencies with its own strengths.
The US policy is clear: it will not grant any benefits to Europe, only trampling weaker opponents underfoot.
Therefore, China and Europe should carefully analyze their interests and understand China's intentions to expand reform and opening up and improve relations with the West.
After all, isolation and jealousy will only make the world more turbulent, and only mutual progress is the real way out.
We hope Europe can recognize China's status as an industrial power.
If the EU insists on following the US and adopting a one-size-fits-all policy towards Chinese electric vehicle companies, then traditional automobile companies in Germany, France, and other countries may lose their footing in the Chinese market.
In a showdown between the two giants, both will end up losing, which will only benefit the US in the end.
Stable China-Europe relations are beneficial for breaking the US's world hegemonic pattern.
I believe some European leaders also understand this, which is why they have given themselves and China a coordinated time before implementing punitive automotive tariffs.
Europe should also be cautious not to shoot itself in the foot.
After all, China is ahead in technology, and the EU can only passively accept this reality.










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