German car manufacturers and industry associations are urging the European Commission (EC) to reverse its plan to impose hefty import tariffs on Chinese electric vehicles (EVs), warning the move could hurt local industry and boomerang against the competitiveness of the European Union (EU).
The EC announced on Oct 4 that it passed a vote to impose punitive tariffs on Chinese battery EVs. Though the Commission said it had secured necessary support from member states, 12 EU members abstained from the vote and five voted against the decision.
The Commission's announcement on the controversial tariffs has provoked an outcry from Germany's automotive industry. They criticized that the move may hurt the competitiveness of German carmakers in the Chinese market.
"Over the years, German automakers have deepened their involvement in the Chinese market, and have especially reached close strategic cooperation relationships with many Chinese EV makers. Among the products on which the EU is planning to impose countervailing duties this time, EVs produced by Sino-German joint ventures actually account for a considerable share. So, in this context, I think German companies will continue to put pressure on the EU to safeguard their own interests," explained Cui Hongjian, director of the Center of European Union and Regional Development Studies with Beijing Foreign Studies University.
He also noted that the EU's decision to impose tariffs on Chinese EVs stems from its adherence to the U.S. economic security strategy.
"However, even the automotive industry in Germany, and some European companies, have long been under pressure from the United States, especially during the previous Trump administration. The U.S. cited a reason that European cars were selling well in the North American market and were more competitive than American cars. Consequently, the Trump administration sought to levy extra taxes, such as steel tariffs, on Germany and several other European nations. Against this backdrop, I believe that both German car manufacturers and governments of European countries should know better that they need to strengthen cooperation with China to ensure the development of European automotive companies and to continue promoting green transformation in the future. If they blindly follow the United States politically without considering their own interests, I think this will not only bring greater challenges in transforming European car manufacturers in the future, but also largely undermine their capacity and deny them the chance for extensive collaboration with the Chinese automotive sector," said Cui.
German carmakers pressure EU leaders to reverse tariffs on Chinese EVs
German carmakers pressure EU leaders to reverse tariffs on Chinese EVs
In recent years, thriving e-commerce has become a main powerhouse for China-Russia bilateral trade amid the ever closer economic and trade relations of BRICS countries.
Through e-commerce platforms, specialty products from China and Russia are easily accessible to each other, bringing new opportunities for businesses in both countries.
Russian media citing data from relevant statistical agencies shows that Chinese products occupy nearly half of Russia's online trading market. These products include electronics, clothing, cosmetics and more. A few months ago, Chinese cars also began to be sold in the Russian market through e-commerce platforms, with sales continuing to grow.
In response to such rapid growth, Russia has implemented a "Made in Russia" product promotion plan to strengthen the international competitiveness of Russian products. Products under this promotion plan are now available on eight major e-commerce platforms in China.
"Sales volume on E-commerce platforms keep increasing. This is a very clear and relatively simple way for Russian manufacturers and exporters to introduce products to Chinese consumers. The selling through online platforms is easier, with lower costs and more convenient operations, compared with that through traditional stores," said Maxim Kuznetsov, deputy general manager of Russian Export Center.
Kuznetsov has noted that in the Chinese market, there is strong demand for products such as seafood, flour and salt, while sweets of the United Confections continue to lead in sales.
The United Confectioners, headquartered in Moscow, exports over 3,000 tons of products to China annually. To further increase export sales, they have also developed a new product - a green tea-flavored Swiss roll. However, the most popular product sold on e-commerce platforms remains the company's flagship product, chocolate. Considering the taste preferences of Chinese consumers, they have intentionally adjusted the recipe by reducing the sugar content.
"We sell our products on popular online platforms. We also have our own online supermarket, affiliated to the China Trading House. It is noteworthy that there are four most popular e-commerce platforms in China, namely Taobao Tmall, Douyin, JD and Pinduoduo. All of the company's products can be found on these platforms, including chocolates, biscuits, wafers and more. We are also developing other product categories. The good development of online sales in China is crucial for us, as it helps expand our target consumers and reach remote areas in China," said Sergey Stroganov, deputy director of China program of United Confectioners.
"The development of e-commerce in China is very strong. Our primary target customers prefer online shopping, with most of them being young women and young mothers. Therefore, we have developed online sales channels with the hope that sales on online platforms will further increase in the near future," said Ksenia Sovetskaya, product manager of China program of United Confectioners.
The burgeoning e-commerce platforms have also opened up more opportunities for small and medium-sized enterprises.
Gzhel Village, with a history of 700 years, is the birthplace of famous Russian folk ceramic crafts. With the development of e-commerce, the sales channels are also changing. Products are no longer showcased through traditional exhibitions but on online platforms. Currently, there is a strong interest from Chinese consumers in Russian products. The artisans there plan to increase the export volume of handicrafts to 140,000 pieces per year. The first batch of products will soon be launched in an online exhibition hall in China.
"We now have a major buyer, China. Therefore, the annual production is increasing, focusing on producing ceramic sets, sculptures, and products with zodiac elements. As the Year of the Snake is approaching, we are producing snake-related products. We also produce accessories for women, such as rings and earrings, as well as popular coffee cups. Additionally, Matryoshka dolls are also widely popular," said Maria Karitina, a painter of Gzhel porcelain factory.
China-Russia E-commerce boosts bilateral trade
