i re uncovers theme, physical obstacles to meaningful climate action. everything is totally unexplored support can still be done. we need to imagine and create a new reality. one that is based on a transformation of the way we make sense of the world and our place. oh, hey, over planet, coming soon on our 20. your opinion plans to impose harshly terrace on chinese electric vehicles facing says it's q a protection is in the vision to in the, the you about the plan and on to him and, and all the com. i guess honey, 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 its wisdom, competitors site states subsidies are given. chinese comic is an unfair advantage. now the issue is proposing new import tariffs while washington has already imposed hash, today's beijing says that simply protectionism and is 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 the green the future will get to a guest in just a moment. but 1st this report from laura con china and west of nation, a gearing out for future of electric vehicles. the f e b, as the name and spacing budgeting the industry is dominating the global market as a green alternative to petrol power engines about the european commission is

pushing on the brakes and bouncing and increase in import duties. beijing is hazing back. china has principles that must be defended, name the world trade organization, rules and market principles. an interest that must be maintained, namely legitimate prices and interests of china is electric, vehicle industry and enterprises. to this end, we will raise a new key, take all the necessary measures. russell says it will impose an additional 38 cents 10 cents terrace. it will use the china, the government is subsidizing its electric vehicle industry, which is on the costing you are paying callback because by creating unfair competition, it says china is rival such as call joint b, y d. among out this cost, typically 20 percent less than you made cost, and they can do that because they receive high state subsidies. the aging makes up 60 percent of global ag sales. this also has prompted us to take notice just

last month, preston to evaluate and said he would fruitful 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 both by the end of 2023. china is b y, d over took the company in april. it's c o, you know, most visited facing. and it bits to increase sales of testing. the technology. he already runs upon from shanghai. i've sold both of 1700000 calls in china and the past decades. those tests the models manufactured in china are exported to europe and will be affected by the tax increase. media report suggests 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 may cause to lower prices. but as they drive towards degree, the bulk it is not clear yet what this will be for 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. bolting 5900000 sales in 2022. now. so it was night and the rest of the world i here in gray, they have also climes to at least since 2012 in 2021. they would even with china, but fell behind the laser with only $4300000.00 cars sold, scalar spring in august now, and the market joins us from badging. he is a research fellow at the think tank, sent it to china and globalization in books in germany. ferdinand student hoffer is

a director at the center of oregon. most of research and an athens vicki 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 that same slide got storytelling. and today we look at the you commission, possibly it's a more or less so all of a a do at the moment i see in germany nobody wants to have the site into it. so that would be a need the agency and 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 the cost in europe and to the prize of the cost of you to natural competitive advantage just which china has. so it's not an atom for competition. it's a nation of competitive advantage because china has a big market. they have a economies of for electric vehicles that don't deal, then they have a long history on battery technology, a better rate industry, the biggest federally mekaux slide to the out on china. so therefore, they have cost advantages, but the natural cost advantages. so the only thing seems to be that after the july or august, when the new uh you, competition is elected. how from the light and then not a thing of the old thing, would it 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 the a you. okay, vicky, do you agree with that? uh no one actually one sees terrace. so why do you think they use pushing ahead with them? since we know the us is for terrace 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 the back of addition coming from china, the subsidies some gloves, but in terms of the production of any source. and we'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 my teeth in the 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 the accounts to the fact that the economy was slowing down, particularly due to problems and the public to set up the results and being and also noted by the facts from production which was not observed the domestic demand, there was that note there actually as the case may be. 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 times one of these from china then the we're, it could be that lots of that export was going to be directed to you or, and that course would be the real problem for good uses. then 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 setting just as we've been

hearing loads of cars, particularly high volume cost to china, and they don't want that to be just drop and then wave 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 respond 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 the account come manufacturers and subsidies? and why did they do it? well, 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 china. but at the same time, you values it's relationship with trying to not just economically 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 surely 70 percent. china exports about 20 percent. so i think, and that's specific a low and i can, we can, we can see that, you know, 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 venue 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 that 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 the what? uh, what, uh, the, this done. it jumped it. they started to trade for a week and you will be shooting step in the trademark. 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. kind of some, would it be president by that? he'd be ridiculous. nobody can categorize 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, that test 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 in europe. we should go into that direction, but the same applies to the same. 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 told me you will be calling to same games to the same kind of this story telling from the u. s. o a bite and 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 election to, to, to donna jobs. so. okay. yeah, that's 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, and interest. 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 said it will take every necessary measure to safe. got a the interest. what should we expect? what's likely to be changes response. now i think it's interesting to see, i haven't done very much to 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. they could well react, costa increasing doris themselves. what we're seeing so far is a haven't reacted particularly strongly. i'm. that's interesting because of course,

very last part of what they do is a trade with you're on the us. sometimes the cost is particularly your, so that will be looking quite carefully the fact that europe is not suggesting a 100 percent as it would be mentioned already, that there's a difference. and that could well be some adjustments. so we're not there. all we do now is a vet german file. spencer is due to be in china this coming week. so therefore there will be discussions about some may be whichever types end up being 1st going to be resort. maybe there be some compromises are up on suspecting of china. we want to compromise. i think it's free trade is good news generally, but nevertheless, one has to abide by various rules. and i would imagine the vision 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 those things to be ready for lied for any challenge. so he may get from trump in the run up to the election later this. yes,

i'm the truth is advice and has been pretty protective anyway. and we are moving towards the world, which is increasingly protectionist and world where production is moving to close the pots and wherever the market is. so there's sort of on shoring ratio and taking place. and when you look at the us itself, of course it was increasing reduction. i swear that all set to this and there's lots of support for industry to develop in the us with a lot of concern from the rest of the world. since of this isn't so bounce on to competitive sir. it's what these, the collins as we move with actually some insight into 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. do you think that this could potentially spock a wide a tried for? i think it's certainly possible tom, but i think it's certainly not in the 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 some good reason for that. so these, you terrorists are provisional, 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 trying to 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 are 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 home 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 so we something more reasonable can be worked out. okay for it and, and i want to know what's this all means for consumers? 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 cause 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 a very low why you'd send euro the directive prices and again, french call make us but use it's like way goes in china because of the that the national competitive advantage. us, if you go to didn't try know. so the old story started in my point of view from the french president. my call. he is a 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 day for most po and the top vacation and the decision of the savings

. now the pony, it gave me a call last, the last step dramatically. devonte 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 shouldn't drawing that what they think goes. okay. and in europe, i think the, the interest rate is a good, the good faith. see, we also need to know how off china to proceed in the next, like regular because and know how and this kids of the better read at the moment by china. they did it for 2430 years. and the same applies a little bit to software into automated driving. so if you to call has it's home and it's competent to try it, i'll definitely, it's very important for you to call and make us to call the rate the best. the

china is companies that not to go into conflict executives also their climate 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 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, getting 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 reduction in europe rather than relying elsewhere. and i think that is

the most 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 got a few minutes left, i mean these terrace, basically buying time for europe to catch up to china. i think there's another mentions optimal sites 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, um, this is an unwelcome development. but the rate of the terrorists,

i think were 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 see china in europe get together and co operate here? i think it's very important to see if we go into the tennis then cos the lease will be expensive into euro, then we really have no, a lot of you producing

a car just so you can do so we get a keep a behind that. so if we have a better price, uh, better price, electron regulars, without taxes or terrys, then the customer can buy the call, then we go and do a walk, 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 time of change about the climate change and that and to get there, you are paid the industry which has to go, it does, can economies and for the need to a private browser. uh, call the end the segment. so i think the after the to the that baby 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 u. o, or are we going to see a retaliation from china here with us on corporation? this is the interest of us a brandon house that does we do appreciate a short shot. the sauce advances. thank you so much. uh, anti phishing and, 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 prefer the discussion go to about 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

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