Erik Solheim, former UN Under-Secretary-General, criticized the European Union's "race-to-the-bottom" protectionist measures against Chinese electric vehicles at a time when the world is in dire need of green competition.
During an exclusive interview with China Global Television Network (CGTN) in Beijing on Monday, Solheim, currently the co-chair of the Europe-Asia Center, said that the EU has adopted a faulty approach by imposing punitive duties when it should be facilitating Chinese EVs in the global market.
"It's exactly the wrong decision by the European Union. Because when China now can produce the best solar panels, best windmills, best electric cars and batteries in the world, the world should applaud. And then across Europe should shape the competition and say we need to get up early in the morning. We need to be more innovative so that we can compete with China in going green, and green competition is not bad, that's good, that's a race to the top. While of course protectionism is a race to the bottom because it will slow down the green transformation," said Solheim.
In response to EU's decision to impose tariffs, China has imposed temporary anti-dumping measures on brandy imports from the EU. It may also target EU pork products and large-engine vehicles.
Though the measures adopted so far by both sides would not trigger a full-blown trade war, Solheim nonetheless holds that there are more suitable solutions to Europe's ailing auto production.
"But the best answer to that is for Europe to invite the Chinese electric battery companies, solar power makers or electric car companies, like say BYD or Huawei, to invest in Europe, then there are jobs in Europe, and you get the technology transfer. By the way, this was exactly how China developed in the past - it invited European and American companies to invest in China to get the technologies and to provide jobs in China. Now it's reversed and Europe should open up for Chinese competition in the European market. That will be very good for Europe and of course also at the end good for China. But please sit down and talk and find solutions," said Solheim.
According to the Chinese Ministry of Commerce on Thursday, there are still major differences in the consultations between China and the EU on the anti-subsidy case involving Chinese EVs, and the two sides have yet to reach a mutually acceptable solution over the tariff dispute.
The European Commission -- the executive arm of the 27-nation EU -- is set to impose countervailing duties of up to 35.3 percent on EVs imported from China, additional to the EU's existing 10 percent tariff on imported cars, after some EU countries did not oppose the move in an October 4 qualified majority vote.
Even though five members of the bloc voted against the duties, and 12 other members abstained, the Commission can now proceed with the countervailing duties before an October 30 deadline. Negotiations with the Chinese side may continue even after the deadline.
EU should invite Chinese investment rather than erect trade barriers: former UN official
