The European Union's move to impose anti-subsidy tariffs on Chinese electric vehicles (EVs) is a hasty and irrational decision, according to the head of the Hungarian Association of Automotive Dealers, who instead called for the European side to engage in closer cooperation and negotiations with Chinese firms in order to boost the development of the new energy vehicle sector.
Earlier this month, representatives from EU member states voted to approve the final ruling on the case presented by the European Commission, the executive arm of the 27-nation EU, which proposed the imposition of anti-subsidy duties on EVs imported from China.
Among those voting, 10 EU members backed the new tariffs, five voted against, while 12 abstained. Hungary was among the countries opposing the tariff hikes.
In an interview with the China Global Television Network (CGTN), Gablini Gabor, president of the Hungarian Association of Automotive Dealers, noted that the EU's move to impose anti-subsidy tariffs on Chinese EVs will do nothing to solve the problem.
"I think it was a hurried approach, a quick approach, but not the best. Because imposing tariffs does not give a solution for the problem. We have some difficulties, we need to find some solutions, but imposing tariffs wouldn't help it," he said.
Stating that the imposition of anti-subsidy tariffs appears to be an "emotional" decision, Gabor believes the move will prove unsuccessful in coping with relevant economic problems in the long run.
"I think in [terms of] the economy, we need some rational answers from rational questions. So the imposing of tariffs is a more emotional answer than a rational [one]. For this reason, I don't believe that it will work, I don't believe that it will work [over a] long time. Maybe for a short time, maybe it would exist maximum till the end of the year," Gabor said.
While the two sides have yet to reach a mutually acceptable solution over the tariff dispute, a Chinese commerce ministry spokesperson said China has officially invited the EU to send a technical team to the country to continue the next phase of face-to-face consultations on the anti-subsidy case involving Chinese EVs.
Gabor said that given how advanced Chinese technology is in this sector, the EU should instead be looking to work closely with China in order to close the gap and speed up the development of its own industry, rather than taking the tariff measures.
"I think that in the electric vehicle technology, the Asians, the Chinese [are] ahead of Europe. So if we want to be closer, you want a smaller gap, or we want to develop and quickly develop, [then] the only solution could be [through] cooperation and negotiation," he said.
Only cooperation can help narrow gap between EU, China in EV sector: Hungarian auto expert
Only cooperation can help narrow gap between EU, China in EV sector: Hungarian auto expert
