In response to today’s decision by EU member states to approve an increase in tariffs from 7.8% to 35.3% (on top of the already existing 10%) on electric cars imported from China, the Socialists and Democrats call on China to find a solution with the European Commission so that a level playing field is guaranteed. China must actively ensure fair competition.
For the S&D Group, protecting industrial quality jobs in Europe and the European tech industry has always been a priority. However, the S&Ds highlight the importance of avoiding escalation in trade relations and are open to dialogue with China on how to create a level playing field and tackle unfair competition in the global market.
Bernd Lange, S&D MEP, chair of the European Parliament’s trade committee, said:
“The final word has not yet been spoken. There is still time to find a joint solution. I welcome the European Commission declaration that it is open to continuing negotiations with China even after the vote. It would be disastrous to let the talks break down and there would only be losers if this escalates further. Both sides should continue negotiations to find a solution.
“At the same time, everyone should play by the same rules. The European Commission's thorough and fact-based investigation has shown that there is no fair competition for the electric vehicle sector in China. It is now up to the Chinese side to make proposals on how to remedy this imbalance. There is also no reason for China to escalate as we have done everything by the book – very different from some other trading partners.
“We want a level playing field under fair conditions for a crucial industrial sector in the EU, but we do not want to close off the market. A negotiated solution would further minimise the risk of escalation and countermeasures. The EU's focus is not on protectionism, but on ensuring a fair and level playing field, allowing consumers the freedom to choose which car best suits their needs.”
Brando Benifei, S&D MEP and coordinator in the trade committee, added:
“Today’s decision is the consequence of the in-depth European Commission investigation on Chinese automakers that confirmed the distortion of competition in the European market. It was conducted – it must be stressed – in accordance with WTO rules and the EU trade toolbox.
“It is paramount that the EU sends a clear message to our trade partners that we are not willing to shy away from defending a level-playing field in all the different sectors of our industry. The defence of European industry as well as high-quality industrial jobs in Europe must be our priority in the field of trade, and we will also stress this on the occasion of the hearing of the Commissioner-designate for trade. The automotive sector is crucial to Europe, employing 13.8 million people and accounting for seven percent of the overall EU economic output.
“What is at stake here is European competitiveness. As Mario Draghi said, for strategic reasons, Europe does not want to be fully dependent on foreign technology in the battery sector, and we should keep the know-how in Europe. However, we should also avoid blanket protectionism. Our European industry must also step up efforts when it comes to producing clean technology and affordable e-cars for people.”
