EU and Chinese representatives raised conflicting issues at the World Economic Forum ‘Davos 2024’, one of which was the European investigation into Chinese subsidized electric vehicles government and accused of unfair competition The second is that the Chinese authorities are investigating the importation of liquor and brandy from Europe. which they accused of dumping
At the meeting of the World Economic Forum in Davos Switzerland for the year 2024, on January 16, Ursula von der Leyen, President of the European Commission, and Li Qiang, Prime Minister of China Raised the issue of the EU investigating electric vehicles from China. With the issue that China will investigate the importation of liquor from the European Union or the EU.
Ursula von der Leyen, President of the European Commission (left), and Premier Li Qiang of China (right).
WHEREAS, although it is emphasized that these investigations could lead to wider trade disputes, But there were no deeper discussions on the investigations between the two sides.
Chinese authorities have announced an anti-dumping investigation into imports of brandy and other wine spirits. European officials warned in January that this was seen as China’s response to an EU investigation into the Chinese government subsidizing electric vehicles in a way they saw as damaging to competition in the market.
Business Times reported that diplomatic relations between the two countries were already tense. The European Union has criticized China for not condemning Russia’s war with Ukraine. and criticized China’s reluctance to address Russian efforts to defeat Western sanctions. The EU has also said trade relations with China are “unbalanced”.
After disruption to the supply chain caused by the pandemic and Russia’s invasion of Ukraine, von der Leyen announced in 2023 that the EU would try to “Reduce the risk” of trade with China is to reduce dependence on industries from China, such as pharmaceuticals, electronics and defense Chinese officials have responded that this would be tantamount to Europe separating its production chain from China. This will lead to Chinese investors not wanting to invest in critical infrastructure in European countries.
China’s Foreign Ministry said PM Li urged the EU to be “cautious” about implementing trade restrictions and trade relief measures.
The investigation by the Chinese authorities into the case of spirits and brandy of the European Union This is the government’s first major action against Europe since the EU announced an investigation into Chinese electric vehicles. Earlier in 2020, China announced a similar investigation into wine imported from Australia. At that time, the relationship between China and Australia was deteriorating. Until finally China established tariffs on wine imports. Just to consider canceling this tariff later.
Any company that does not cooperate with China’s EU liquor dumping investigation may also face higher tariffs LVMH Moët Hennessy Louis Vuitton, the company that owns the Hennessy Cognac brand We are cooperating with the Chinese authorities in this matter. And the EU is about to make its own offer.
Recently, the EU has taken trade measures against China that go beyond electric vehicles. In December 2023, the EU launched an anti-dumping investigation into the export of biodiesel and melamine fuels. In November 2023, it announced the EU temporary tariff measures to combat dumping on imports of certain plastic products from China.
Thailand Customs Service Center Website Define meaning “dumping” is said to be a form of price fixing to eliminate competitors. This is particularly true in the context of international trade. Dumping occurs when a manufacturer exports a product to another country at a price lower than the price set in the domestic market. or in quantities that cannot be explained in normal market competition … under WTO agreements. Dumping is condemned. (but not prohibited) if it is done or threatens to cause significant damage to an industry in the importing country.”
A source close to the matter said it is not yet clear whether China will impose tariffs on brandy. But temporary tariff measures may be implemented in March, while the EU may impose temporary tariffs on Chinese electric vehicles in June.
European Commission It was announced before the meeting that there will be an investigation into Chinese electric vehicles.
A few days before the Davos meeting The European Commission has announced that it will launch an investigation to determine whether tariffs on electric vehicles from China will be established to protect European electric vehicles.
A source involved in the investigation said: European inspectors will visit Chinese car makers BYD, Geely and SAIC, but not other Chinese car brands such as Tesla, Renault and BMW.
The EU investigation opened in October 2023 and is expected to take around 13 months to assess whether cheaper Chinese electric vehicles have an unfair advantage. Is this due to government subsidies from China? This investigation has led China to accuse the EU of trade protectionism.
Olof Gill, spokesman for the European Commission for Trade, said that the commission would select survey representatives from Chinese and EU manufacturers who responded to the survey. Including arranging for the committee to visit to check the facts on the company’s site between January and February 2024.
European luxury brands are at risk of being affected. If China retaliates on trade
In 2023, the EU’s trade deficit with China increased to more than 400 billion US dollars. If China retaliates on trade with Europe because they are unhappy with Europe’s investigation into them It has the potential to have an impact on European luxury brands. or cosmetics companies
In China, there is a large and growing market for European luxury brands such as L’Oreal and Louis Vuitton. In mid-2023, the French Finance Minister visited China. He is also pushing for more exports to China. Chinese authorities’ investigation into European liquor issues Much of it was investigating liquor imported from France.
In addition to the Davos meeting, China and the EU will have the opportunity to discuss trade disputes in other forums later, such as at the WTO ministerial meeting held in February.
Compiled from
EU, China raise EV and alcohol probes during Davos meeting, The Business Times, 17-01-2024
Exclusive-EU Researchers to Survey BYD, Geely and China’s SAIC in EV Probe – Source, US News, 12-01-2024
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