Probe into Chinese EVs triggers internal division, public concern in Europe

The European Union (EU)'s anti-subsidy probe into Chinese electric vehicles keeps inviting opposition from the bloc's individual member states and leading to consumers' concern about potential price hikes for EVs and their countries' decarbonization goals.

Since the European Commission initiated its so-called anti-subsidy investigation into China's EVs on the grounds of "excessive industrial capacity" last October, European countries, including the EU's major economies, have remained divided over the move.

Hungary's Prime Minister Viktor Orban have stressed on multiple occasions that the decision is wrong and ill-conceived and could trigger a trade war. German Chancellor Olaf Scholz believes that this step could affect normal vehicle trade between China and Europe and deal a blow to global free trade. The Finnish Foreign Ministry has also issued statements saying that the country holds a skeptical stance on this issue as it is not in the interests of the EU.

The opposition from these EU member states is grounded in actual data which indicates the same, if not bigger, negative impact on European brands from higher tariffs than on Chinese ones.

According to the European Automobile Manufacturers' Association (ACEA), Chinese pure EVs held a 21.7-percent share of the European market last year, with Chinese brands making up only 7.6 percent, or a third of the market share, while European EVs imported from China accounted for the rest two thirds.

It means that should further tariffs on EVs imported from China become definitive, the EU's move will backfire on European brands, including the German automakers BMW, Mercedes and Volkswagen, which could face tariffs of 21.3 percent for cars they produce in China, as well as disrupt China-EU cooperation on relevant production and supply chains.

European industry players and public alike are concerned about the ramifications of the EU's protectionist move, believing that it hurts not only their own EV makers' profits, but also the consumers' interests, as findings from global consulting firm AlixPartners' survey this year showed that people from 43 percent of European countries are willing to purchase Chinese EVs.

Many European consumers believe that imposing additional tariffs on China's EVs will lead to higher prices in the market and impede their countries' push for carbon emissions reduction and green economic development.

"I think less people will buy because less people will be able to afford that cars, and it's unfair. It affects the economy, the cost of life and the standard of living," said Schakhlin, a Brussels resident.

"I don't really care whether it's from a Chinese company or a European company or an American company. I want a good car that helps the planet to survive," said Bortuzzo, a resident of Luxembourg City.

"I think it's not good, and if you look in general in the future, it's going to be bad," said Aleksey, another resident of the Belgian capital.

Some in the European legal community have also voiced their professional perspectives on what counts as "government subsidies," saying that the EU's probe into Chinese electric cars in this regard is overly generalized to the point of lacking credibility and legality.

"The Commission said, 'Well, we need to compare the price at which Chinese companies buy Chinese batteries, which is quite low, with an international benchmark, which is very high. And the difference between those two, that's a subsidy', which obviously [under] WTO law is very questionable because [having] the subsidy, or to have a subsidy, you need to have an action from the government. And here what we see is just private companies like CATL selling batteries to Chinese car manufacturers, and we don't really see the link with the government in there," said Kolocheter, a senior partner at Spanish law firm VeriLex Legal in Madrid.

CATL is China's largest automotive lithium-ion battery maker.

At the same time, China has remained open for negotiations with the EU to resolve the escalating trade issue. Chinese Commerce Minister Wang Wentao is scheduled to visit Europe on Sept 19 to discuss the probe with European officials, including European Commission Executive Vice President and Trade Commissioner Valdis Dombrovskis.

Probe into Chinese EVs triggers internal division, public concern in Europe

Probe into Chinese EVs triggers internal division, public concern in Europe

Fu Cong, China's permanent representative to the United Nations, on Tuesday urged Israel to heed the strong call of the international community by immediately ending its unlawful presence in the occupied Palestinian territory.

In his remarks at the UN General Assembly (UNGA) emergency special session on the Palestinian question, Fu said decades of occupation and oppression have inflicted untold sufferings on the Palestinian people, and made the long-cherished dream of independent statehood ever more elusive.

Fu stressed that ending the occupation is not an option, but a legal obligation for Israel.

The International Court of Justice (ICJ), in its advisory opinion issued on July 19, unequivocally concluded that Israel's continued presence in the occupied Palestinian territory is a violation of international law, and that Israel is under an obligation to immediately bring to an end its unlawful presence in the occupied Palestinian territory, the ambassador said, adding that the ICJ's advisory opinion affirms the long-standing consensus of the international community and pinpoints the crux of the Palestinian question.

Fu noted that ending the occupation is to redress historical injustice and, more importantly, lay the foundation for peace.

Underscoring that independent statehood is the inalienable right of the Palestinian people as a nation, the ambassador said the prolonged illegal occupation has hindered the realization of self-determination of the Palestinian people and given Israel an exclusive veto over Palestine. "This is unacceptable," he said.

"History has fully demonstrated that occupation will not make Israel more secure; it will only breed more hatred and opposition, planting the seeds of unrest and instability throughout the Middle East. Only a complete end to the occupation and the establishment of the independent State of Palestine will truly make it possible for Palestine and Israel to stay side by side in peace, for the people of both nations to live in peace and tranquility, and for achieving lasting peace in the Middle East," said Fu.

Fu emphasized that the implementation of the two-State solution is the only viable way to resolve the question of Palestine, and is the broad consensus of the international community.

What is concerning is that Israel continues to make statements rejecting the "two-State solution", and the ongoing Gaza conflict that has lasted for 11 months has made the prospect of achieving the "two-State solution" even more uncertain, Fu said.

China advocates the convening of a more broad-based and effective international peace conference to revitalize the political prospects of the two-State solution and to work out a timetable and a roadmap for the implementation of "two-State solution", he said.

"Today is a historic moment," Fu said, noting that the State of Palestine has taken a seat among UN member states and introduced a draft resolution to the General Assembly that focuses on the implementation of the advisory opinion of the ICJ.

He said China will vote in favor of the draft resolution, and hopes the resolution will give new impetus to ending the occupation, implementing the two-State solution, and advancing the Middle East peace process.

Chinese envoy urges Israel to immediately end unlawful presence in occupied Palestinian territory