The European Commission's latest move to impose controversial punitive tariffs on Chinese battery electric vehicles (EVs) will threaten Europe's own ambition for a green transition, hurt European consumers, and have a negative impact on economic development, said industry insiders during an interview.
They emphasized that instead of fostering cooperation, these tariffs risk sparking a trade conflict that could harm not only China-EU relations, but also Europe's own ambition for a green transition.
Experts anticipate that the prices of EVs will increase due to the controversial punitive tariffs, potentially affecting consumers' purchase intentions. This move is expected to slow down the pace of Europe's transition to EVs.
This year, the growth rate of electric car sales in Europe has rapidly slowed down. In August, electric car sales in Germany saw a significant drop of nearly 70 percent.
Analysts pointed out that the high prices of electric vehicles produced in Europe are the main reason for the subdued consumer purchasing intentions.
German auto expert Ferdinand Dudenhoffer stated that the EU's punitive tariffs will further increase the prices of electric vehicles, impacting the EU's carbon neutrality goals.
"All German and French car manufacturers are against the tariff policy by the European Commission. The European Commission's punitive tariffs have harmed the European automotive industry and undermined efforts to address climate change. It artificially raises the prices of electric cars, which is detrimental," he said.
In recent years, German car manufacturers have continued to invest and deepen their presence in the Chinese market, establishing production bases, as well as research and development centers. The Chinese market has become one of the key pillars of German car manufacturers' global strategies and a significant driver of electrification transformation and technological innovation.
Professionals in the German automotive industry have voiced that only an open market and healthy competition can foster innovation.
"Going into protectionism and building up borders, I believe will stifle growth and actually reduce economic positive impact for the future. So the right way forward is to continue a path towards opening up. That's what we strongly feel," said Ola Kallenius, chairman of the Board of Management at Mercedes-Benz Group AG.
EU's protectionist tariffs on Chinese EVs threaten green transition: experts
Despite facing various challenges, the debut economy has driven new growth in the consumer market in Shenzhen City of south China's Guangdong Province.
China's beloved animation series "Boonie Bears" is expanding its reach. The world's first Boonie Bears-themed shopping mall has opened in Shenzhen and it's attracting many new brands.
This concept is part of the growing debut economy, which not only includes new first stores, but also new business models, innovative services, and unique retail experiences.
"Boonie Bears" is one of the most popular children's cartoons in China. With 10 movies, the series has grossed over 1.1 billion U.S. dollars, making it China's top family-friendly animated series.
The first-ever Boonie Bears Amusement Park in the world covers an area equivalent to four basketball courts.
"My kid loves Boonie Bears, so we had to come," said a customer in Shenzhen.
"It's great that the activities combine fun and learning," said another customer.
This park sits inside China's first Boonie Bears themed mall in Shenzhen which opened last month. The mall has attracted over 220 brands, and more than 20 percent of them are opening in the district for the first time.
"There's a coffee shop combined with a bookstore upstairs, something I don't usually see in other shopping centers," said a customer.
These new business models have been boosting consumption. Over the seven-day National Day holiday on October 1-7, the mall saw sales reach over four million U.S. dollars, with a peak daily traffic of over 180,000 shoppers.
"This chicken pot restaurant started as a popular street-side shop, and we invited them to open its first store in mall here," said Zhang Shifa, deputy general manager of Commercial Management of Shenzhen Huaqiang Group.
In addition, Shenzhen's first laundry convenience service center in Huanggang Village is also a classic example of the debut economy, benefiting ordinary people.
Around 60 percent of Shenzhen's residents live in urban villages, which occupy just around 40 percent of the city's residential area. These villages often lack outdoor space, making it difficult for residents to dry their clothes, especially in the city's rainy climate.
Today, this center offered gas dryers for residents to share. The service is currently free in its trial phase.
"They said the prices will be affordable in the future, so I will be very happy to pay for it," said a local resident.
The service has created new needs for consumers and represented a new type of business in the debut economy, according to the customer service department.
"We're researching affordable prices for locals and discovered a big market niche. If this model proves successful, we plan to expand it to more areas," said Wen Nan, a staff member of Customer Service of Quality Management Department of Shenzhen Gas Group.
Debut economy drives new growth in China's consumer market
