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That's the official justification given for the tariffs, but the motivation for the tariffs is 100% that Chinese EVs are cheap, and European auto manufacturers
by DiogenesKynikos 2y ago
That's the official justification given for the tariffs, but the motivation for the tariffs is 100% that Chinese EVs are cheap, and European auto manufacturers are unable to compete on a level playing field.
The decision to impose tariffs came first, and the "investigation" into Chinese subsidies came next, in order to justify a decision that had already been made. Once the "investigation" came back with the pre-determined answer, the tariffs were imposed.
The subsidies that are being alleged here are the exact same types of subsidies that European countries and the US give to support EV sales. Chinese subsidies are not especially large here, and they're not the reason why Chinese EVs are cheap. Chinese EVs are cheap because the Chinese EV market is extremely competitive, China is good at manufacturing, and Chinese mass consumers can't afford cars at European or American prices.
In contrast, major European auto manufacturers have wasted time by continuing to focus on internal-combustion-engine vehicles. Suddenly, they find themselves at a disadvantage in the EV market, so they go running to their governments and ask for tariffs on superior Chinese EVs. Protectionism 101.