the, the european union plans to impose harshly terrace on chinese electric vehicles facing says it's protection, isn't the vision to in the, the you about the plan and on to him and, and all the comic is highly exposed to the chinese market. so what is behind the dispute and couldn't listen? this is inside story, the

hello welcome to the program. i'm told mccrae china has raised a head of the rest of the world and producing electric vehicles known as a vase, is making them faster and cheaper than in europe or the united states. but it's wisdom, competitor site, state subsidies. the given chinese comic is an unfair advantage and the issue is proposing new import tariffs while washington has already imposed hash, today's beijing says that simply protectionism and just planning to respond. so could this dispute lead to a wider trade? what and what was the impact on the fits to transition to 0 emission vehicles and degree in the future? we'll get to this in just a moment. but 1st this report from laura con china and west of nations, a gearing up for future of electric vehicles. those f e d actually lumens beijing's budgeting industry is dominating the global market as a green alternative to petrol power engine to bounce. the european commission is

pushing on the brakes and then seeing an increase in import duties. beijing is i think back china has principles that must be defended. name of the world trade organization, rules and market principles. an interest that must be maintained, namely that determine price and interest of china is electric, vehicle industry and enterprises. to this and we will resolutely take all the necessary measures. russell says it will impose an additional 38 cents 10 cents terrace. it will use the china as government is subsidizing it's electric vehicle industry, which is on the costing you are paying call because by creating unfair competition, it says china is rivals such as college r and b y d, among others cost typically 20 percent less than you made cost, as they can do that, because they receive high state subsidies, staging makes up 60 percent of the global ag sales. this also has prompted us to

take notice. just last month president joe biden said he would truthful import duties to protect us jobs. this will push to his own chinese e. b, 's to more than a 100 percent us manufacturer. tesla had previously dominated the industry, but by the end of 2023, china's b y d o. the took the company in april. it's c o, you know, most visited facing and it bits to increase sales of testing the technology. now he already runs pods in shanghai. i've sold both of 1700000 causing china in the past decades. those tests the models manufactured in china are exported to europe and will be effective by the tax increase. media report suggest tesla is already considering raising the price of its chinese made costs in the u. europe says an increase in the price of chinese made cost will even competition and reduce

pressure for its call make has to lower prices. thoughts as they drive towards agree, the bulk it is not clear yet what this will be. the can see the north on the inside story out to 0 will. so just help popular chinese made a vase where you can see an orange how sales have been climbing from 359000 d. v. sold in 2016 tool ball thing. 5.9000000 sales in 2022. now. so it was made in the rest of the world i here in gray. they have also climbed steadily since 20122021. they would even with china, but fell behind the laser with only $4300000.00 cars solve the scalar spring in august now, and the market joins us from badging. he is a research fellow with the think tank, sent it to china and globalization and books in germany. ferdinand student hoffer

is a director at the center of oregon. most of research and an athens vicky price joins us as she is the chief economic advisor at the center for economics and business research. thank you very much for joining us. looking forward very much to this discussion today. at the end, if i can begin with you, obviously the issue you commission is trying to slow down china's push into europe . is this going to work? yeah, see, it seems like got storytelling. and today we look at the you commission probably it's more or less so off all day i do at the moment i see in germany, nobody wants to have the site and so it's gonna be a need. the agency know the paulette jacobs. the same applies by the way to the french automotive. make us a lie, but one no, and received one additional

a. so the commission is doing something which is very strange. nobody's understanding it because they, the child is just sell a smaller one and you have costs in europe and to the prize of the cause of you to natural competitive advantage just which china has. so it's not an atom for competition. it's an action of a competitive advantage because china has a big market. they have a economies of for you, electric vehicles, and on the other end, they have a long history on battery technology and better rate industry. the biggest, better we make us live here to help find china. so therefore they have cost advantages, but better natural costs advantages. so the only thing seems to be that after the july or august, when the new uh you, uh, competition is elected. how from that line and then

a thing of the old thing will be ended and ready to go into a fair competition as it was in the past. so we don't need any of that positive terry is that is just story tally from that a you. okay. vicky, do you agree with that? uh, no one actually wants these terra so why do you think they use pushing ahead with them? since we know the us is for thomas on the visa and also so the as things as well. so from china to the solar panels, and the reason for that is that they didn't d b. so the has been on track of additional coming from china, the subsidies some gloves, but in terms of the production of any source. and i'll just call us but caused some particular which are a problem in terms of the numbers that are coming for the electric vehicles from china in various parts of the world. and also in the us, all my to call. and i to been to us quite uncompetitive. so that's the belief. but

the us trying to deal with this, we know, had been to china, was very concerned about over production. in some areas, there is a believes that the chinese and cost a considerable production to take place and manufacturing accounts to the fact that the economy was slowing down, particularly due to problems in the public to set up the results and being and also noted by the facts from production which was not observed the domestic dom on that was the oh no, there actually is the case maybe so lots of it was exporters and that was putting huge them under pressure on manufacturers elsewhere. safety us a good stop type of town. remember, the us is which a 100 percent tires, one of these from china then the we're, it, it'd be a lot of that export was going to be directed to your and that course would be the real problem for that uses that one of the reasons why of course the, the, the legitimate these is thinking of by the sun and the car industry in germany

doesn't like it is because they themselves have been selling just as we've been hearing loads of cars, particularly high volume cost to china. and they don't want that to be dropped in any way of southern tire size, but as the other way. so i'm afraid it does become a little bit difficult looking at where perhaps this whole thing might end up. okay, we'll get to that in a moment. and we will also talk about how begging might response if it will retaliate the 1st of all, can you just give us a bit of a bit of an idea? how much does the chinese site actually pay to be account come manufacturers and subsidies? and why did they do it? well, let me start with your why is this happening? i think ferdinand clause that story tell you, i think this is inherently political. where the you is trying to thread the needle geo political you. where i, the under pressure from the us to joining us is quick sought chris

say to contain and suppress trying to. but at the same time, you values it's relationship with trying to not just picking automatically but diplomatically as well. so it's trying to thread didn't get all by proposing chairs that are maximum of 30 percent that are enough to play to the united states. but at the same time, i hope is to not only antagonize china, and i think we have to see will this be the case because the trains ministry of commerce, of course, came out was the very strong language saying that it will protect the interest of the v uh, companies in china. so with that as background you, i think this is the question of how much the training is. government is supporting the trade easy. the industry is an interesting one. and i think it is very

subjective because every government's job is in a sense to subsidize its businesses. it's industries, whether that's through efficient infrastructure, electricity roads, the sanitation and educated workforce. and i think reasonable people can disagree where to draw the line. but i think also there's a false narrative being promoted to your quote unquote chinese over capacity. but let me just share one statistics that i think will absolutely debunk this. so germany exports something like 70 percent of its automotive of manufacturing, that is manufactured in shortly 70 percent. china exports about 20 percent. so i think and that's specific a low and i can we, we can see that. yeah, this really is a very false narrative that china is engaging in some sort of

over capacity and trying to dump electric vehicles on the global market. yet sitting in a n d alluded to there as well as, as vicki a short time ago, i mean, how much is of this is the you being mindful of what the us is just i'm putting a 100 percent terrace on. i mean to the, the, you your commission to have the hand force here. yes. i see that the, the story of over capacity is also a story telling. let's pull back down and, and talk about it just uh, uh, because like i told us from the us to the us don't want to be in call about i was china looking what, uh, what, uh, the, this done. it did. they started to trade for a week and you will be short instead being that right well, and it's crazy, 100 percent, uh, tablets, uh on cost. uh so us is us,

let us be as a, as they are, we in europe, we should see an hour or so in a few months in november. got our trauma will be president by. that's really ridiculous. nobody can calculate what he's doing. so it's very important or tony, it's more important for you to come in a corporation with chinese companies see about 40 percent off the value of the term and call me cause i created in china. so if it go into a trade with china, then the truman calling to see when be heard, it's very, very, very much of this and the price by the way, to the french. so, oh no, it's bored using it's a regular the us please. the most attractive pricing of a go and you wrote it all. so what gets

a died is really the french. yeah. import. if uh, uh, vaguely from china because china has natural competitive advantages in producing new ways. we don't have that at the moment. and europe, we should go into that direction to present applies to the saying, i'm just saying, i'm just don't want to have any protection. so i'm just going to have to have competition. so good holder you will be calling to say is a games to the same kind of this story telling from the u. s. o, a binding 100 percent taxes on gift texas on, on china is cost. that is, that is just a reaction because you wanted to, to lose the residential action to, to, to down a job. so. okay. yeah, no, not fair. so the situation this, uh, there are no uh, subsidies. we just added sale to the company is this uh,

scaling effectuate show we see in china and that of all us national competitive advantages and there is no reason to tax natural imperative. advantageous. okay, well i want to get onto how china might respond here, vicky, i mean, they haven't said yet how they might retaliate, but say that will take every necessary measure to safe. got their interest. what should we expect? what's likely to be china is response. now i think it's interesting to so far we haven't done very much the said they're looking at particular expos for inputs, the extra so the us an invoice into china, they are concerned about whether there was a bit of dumping, taking place on chemical products. for example, they've already initiated some studies on this and they could well react, of course, the increasing doris themselves. what we're seeing so far is that they haven't

reacted particularly strongly. i'm. that's interesting because of course, very nice part of what they do is a trade with your v us sometimes because it's particularly euro. so they will be looking quite carefully the fact that your of is not suggesting how much of a center. so it would be mentioned already that there's a difference. and that could well be some adjustments. so we not through what we do now is of the german file. spencer is due to be in china this coming week. so therefore, there will be discussions all dots and many page, whichever types end up being 1st going to be resort. maybe there be some compromises on suspecting of china, we want to compromise. i think it's free trade is, is good news generally, but nevertheless, one has to abide by various rules. and i would imagine that the site is that the world trade organization should look a little bit more carefully. but it was the question about whether by the end is doing nice things to be ready for lied for any challenge. so he may get from trump

in the run up to the election later this year. i'm the truth, his advice and it's been pretty protective. anyway, and we are moving towards the world, which is increasingly protectionist and wells where production is moving to close the pots and wherever they want to do. so there's sort of on showing ratio and taking place. and when you look at the us itself, of course, what was your question reduction. i swear that all sorts of there's a lot of support for industry to, to kind of in the us with the concern from the rest of the world. since of this isn't so bouts, optical best if sir, is what elizabeth collins certainly will protection to some mistakes in this, it needs especially the attention of going between the us and china, and the you're, you're in beijing, obviously. you no doubt got you into the ground. what do you think that this could potentially spock a why the tried for? i think it's certainly possible tom, but i think it's certainly not any interest of the you or try it us. i think both

sides will work far to avoid this. i think it's also worth mentioning that at this point, as ricky said, the trainees had doesn't have not implemented anything yet. and i think there's a good reason for that. so these you terrorists are for vision all, i believe they're supposed to start being implemented in july, but a final decision will not be made until november. so it's certainly possible, you know, as the few tries again, just read this needle to please the us on the one side. and it's, um, do so i would say the efforts to contain china while maintaining a familiar relationship with china as well. but that it vague, it may very well decide that these terrorists may not be the most sensible way forward. but i think we should also note here that there are domestic politics that work here, that germany, of course,

is very much against this. there autumn companies are doing very well in china and spread short more for this. i think they see this as an opportunity perhaps to grow their own of the industry to become more competitive. uh, so again, there's a lot of forces that work here that i think on a net net suggests that there may not be afraid who are here. and again, there's just stuff. both sides have a lot to lose and hopefully something more reasonable can be worked out. okay, good. and i want to know what's this all means fed consume? is anyone out there who's looking to buy an easy, i mean, the use only said that an increase in the price of chinese made cars is going to help even not competition and reduce the pressure for its own comp, make it to actually lower prices. so surely this is just going to make you these more expensive for consumers. so how is that good for them?

so today is what we see uh they sell very low, why you'd send euro the directive prizes and again, french call make us, but use it. so that's like way goes in china because of the, that the national competitive advantage us if you go to join in china. and so the old story started in my point of view from the french president, my call he is in favor officer protection. he, uh he, uh, instructed to know who in the, in the presidency to go into uh, into analysis had a look at that. and then the story started shortly before the election dealer being election debate for most pound of the top vacation and the decision. not the

savings. now the point again, uh, the last last step, dramatically. the volunteer really not be any longer president in the french in the future. so i'm the largest fav favorite re i hope that here in be manish and devil. i'm pretty sure that'd be go in the regular discussions and don't care too much on the us and they should drive what they think goes. okay. and in europe, i'd say the, the interest rate is a good the in a good faith. see, we also need to know how off china to proceed in like regular, because i know how and this case of the batteries at the moment by china they needed for the trend. new facility is the same, applies a little bit to software and to automatic driving. so if you to call has its whole and it's competent to try it out. definitely,

it's very important for us make us to call the rate uh, based on china's companies and not to go into conflict executives. also, they're kind of policies of the you. obviously we know that there's a big push to go drain and transition to 0 emission vehicles. i mean, this is completely counter productive full that yes, this is interesting to me, but of course we did have the european elections just just very, very recent faithful, the parliament, the yukon event on the what we've seen is that the greens last up quite significantly and we have seen some push back on the move to next 0 so so who knows how we learned up? so yes, of course it is important that lots of investments taking place on green initiatives right now in terms of industry getting ready for the future. a long one has been distributed to congress or have corporate plans in the area. so yes, and it's still going oh, going ahead on the green front and that freebies batteries and so i'm not going to be 9 portion. but at the same time, i think we might see things slowing down

a little bit from where the, where before, so there is, there is a bit of a company's going on on perhaps this holy be a tax issue. and also it gives people little bit more time the comments to be more time to become a competitive in, in europe. if you get an individual. also leeway in terms of the timings when you're supposed to start to completely agree with terms of the car industry. but it's, it's, it's was also saying that, i mean when, when you look at it, what was actually happened, it should be seen the why the context. all of you are being worried about his competitiveness more generally. and the reason being reported due to come out by the form ahead of the to be and then of course an a prime minister. well, it's of a maya druggie who is a very concerned and i'm just obviously being ready, influential. and essentially the commission in terms of stressing the needs to take steps to become a little bit different to have a lot more production in europe rather than relying elsewhere. and i think that is

very much part of the entire picture. even though we might see some adjustments to watch just being a now, so the doris of, from china, what you may actually see, some real push it to both industries and you are good. so i want to ask you very briefly, because when you've got a few minutes left, i mean these terrace, basically buying time for europe to catch up to china. i think there's another one to the sides in that i think your will spend a lot more to get ready. but the point about batteries with production takes place is a very significant one. and the china right now has the competitive advantage. okay, and a, what do you think is going to happen from this point on? obviously the terraces as likely to take effect on july, the 4th. if both sides failed to resolve the issue, we're going to see them get together and try and hash this out. well i think from the perspective of the trainees, e, v, manufacturers,

this is an unwelcome development. but the rate of the terrorist, i think we're designed to be more or less that acceptable, that the twenty's, the manufacturers would still continue to do business in europe. and of course some of them are setting up manufacturing plants in coming to re, uh, other parts. as well as part of the more general diversification strategy. i think there's a risk of damaging you trying to relations and i think the folks on uh, the trainees side is that this can be resolved. and of course they have us on the sidewalk. and so hoping we have to pay to see. okay, so and i want to ask, do you think that there's any scenario that we could actually say china in europe get together and co operate here? i think it's very important to see if we go into the thomas ben cos the lease will

be expensive and durable. then we really have no, a lot of you producing a car and just so you can do so we get a keep a behind that. so if we have a better price, a better price, electronic regulars, without taxes or carries, then the customer can buy the call, then we go and do a volume walker, then it'd be on the market. the, your opinions can also go, it's katie, economies. so the boy, it's very important to us for the climate change can about the climate change and that, and to get there, you are paid the industry which has to go into scan economies and for the need to a private browser. uh, call the end the segment. so i think after the to the video is going to continue in record of this test. okay,

kevin is just very briefly vicky because i've only got about a minute or so left. do you think that they'll be co operation between china in the you or, or are we going to see a retaliation from china here? with best on corporation? this is the interest of us. a brilliant house that does we do appreciate the short shop the sauce advances. thank you so much and the food and thank you for joining us here and inside story we really do appreciate your time. thanks so much. well, thank you to for watching. you can see the program again any time by visiting a website, that's l g 0, dot com. and for further discussion, go through all facebook page. that's facebook dot com forward slash a j inside story. you can also join the conversation on ex uh, handlers at a inside story for me told me to cry in the and tides. good bye for now the, the hard hitting intervenes is israel and obstacles piece. i think that's the new

thing you have on his government with these says 5 digit, you say getting less of a thought provoking odd since the e you made weapons being used in gaza. no guns should be used in an offensive way. that's our facing realities. you're running mean what does he bring to the table? hard from being presidential? could we go to some we cannot take the effective use of the person as not that important factor. hear the story on talk to how does era help protect palestinian families from starvation? our goal is the stuff i provided a. the 700000 helped meals sofa supporting 1700000 palestinians that no age is needed to not use a cut also to, to provide a life saving food every mailed in a to is matched, doubling the meals and your rewards. help us fight. finding the interrogate the narrative is the u. s. has

continued support for israel affecting his global standing. there's no question about it. the united states has effectively complicit the genocide challenge the rhetoric. yes. say lisa, correct. but so is the international community. can we also say that deals the cornerstone of democracy is having a free and open democratic process upfront without the latest news as it breaks, the situation is no different here in the hospital. a desperate attempt to save lives with the few resources left with detailed coverage. it's been more than a and a half hours of civil different themes trying to put to all the fire from the house or the story palestinian farm was this have a beat to be the p could with hope for old gauze as best place families the

the government challenges here, where the, [000:00:00;00] the hello, i'm sammy's a them. this is the news our lives from dell coming off in the next 60 minutes. these right imagery confirms 8 soldiers have been killed and fighting and gone to the southern city of an awful protest as a back on the streets of kind of a demonic se is fine. and the deal to release the remaining is rated captains in

garza. that comes as is reality strikes target residential areas in central and southern guns. a kenning at least 38th thomas vivian's protest is across from