[000:00:00;00] news . ringback the european union plans to impose harsh view terrace on chinese electric vehicles facing says it's few of protectionism division to in 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 telling 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 con, make is an unfair advantage. and the issue is proposing new import tariffs while washington has already imposed hash today's facing 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 the world trade organization, rules and market principles and interest that must be maintained namely legitimate prices and interest 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 as government is subsidizing its electric vehicle industry, which is on the costing you are paying call. because by creating unfair competition, it says china is rivals such as call joint b, y d, among others 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 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 boats by the end of 2023. china is b y d over took the company in april. it's c o, you know, most visited beijing and it bits to increase sales of testing the technology. now he already runs a pod from shanghai. i've sold both of 1700000 causing china. in the past decade. those tests the models manufactured in china are exported to europe and will be affected 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. but as they drive towards degree, the bulk it is not clear yet what this will be for the can see the, 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 also was made in the rest of the world. i here in gray, they have also climbed steadily since 2012 in 2021. they would even with china, but fell behind the laser with only $4300000.00 cars sold. let's bring in august now and the market joins us from beijing. he is

a research fellow at the think tank sense of the china and globalization in books in germany finance didn't. hoffer is a director at the center of origin. most of research and an athens vicky price joins us as she is a cheap economic advisor at the center for economics and business research. thank you very much for joining us. looking forward very much of this discussion today. at the end of all 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, possibly it's a more or less. so off all day i do at the moment i see in germany, nobody wants to the 2nd to it's gonna be a need the agency and know the paulette jacobs. the same applies by the way to the

french automotive. make us a lie going know, and see to one and push off 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 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 cod out, fine, 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, uh,

competition is elected. how from the light and then 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 thomas on the visa and also to the as things as well. so from china and community solar panels and the reason for that is that indeed the so the has been on the fact of addition coming from china, the subsidies some gloves, but in cars, the production of any source. and i'll just costs. but carson particular which are a problem in terms of the numbers that are coming over electric vehicles from china, in various parts of the world and also in,

in the us all my to call 19 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 of manufacturing the accounts to the fact that the economy was slowing down, particularly due to go in was in the public to set up the results and being and also noted by the facts from production, which was not observed the domestic, the mom, that was the oh no, there actually is the case maybe so lots of it was exporters and that was putting some under pressure on manufacturers elsewhere. 16 us a good, some type of talent. remember, the us is present 100 percent times when you've ease from china, then the we're, it could be that lots of that export was going to be directed to your and that course would be the real problem for that uses them. one of the reasons why, of course, the, the, the more general these is things you can buy,

they sent them. 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 just drop 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 that 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 the account come manufacturers and subsidies and ones that they do is 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 geopolitically,

where i saw 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 picking automatically but diplomatically as well. so it's trying to thread the needle 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 rows, the sanitation and educated workforce. and i think reasonable people can disagree where to draw the line. but i think also there is 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 fitting and indeed 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 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 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, the kind of trauma will be president by the 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 the same device 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. very good and you wrote it all stuff

. 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 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 told me 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 reduce the residential action to, to, to down a job. 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 on to 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 see, i haven't done very much to said they're looking at particular x force 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 they 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 veteran and file spencer is due to be in china this coming week. so therefore there will be discussions. all that's and may be whichever types end up being 1st going to be resort. maybe there be some compromises on suspecting of china we want to compromise. i mean, free trade is, is good news generally, but nevertheless, one has a, a bible there as 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 where the, by the end is doing various 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, his advice and it's 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 showing ratio and taking place on the us itself. of course we 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. uh, 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 wider trade 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 some good reason for that. so these, you terrorists aren't 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, doing 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, 5 as french or more for this. i think they see this as an opportunity perhaps to grow their own the, the, 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 the 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 mccaul, 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. the you

were being election day for most po and the top vacation and the decision of the savings. now the pony gave me a call last 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 u. s. and they should drawing with 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 needed for 24. 30 is the same, applies a little bit to software and to automatic 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 and 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 your father event on the what we've seen is that the greens will stop 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. and most of the investment is taking place on green initiatives right now in terms of industry getting ready for the future. a long one has been contributing to congress. i have corporate plans in the area. so yes, and it's still going, but we're getting ahead on the green front and that freebies batteries and so we're

not going to be $0.94. but at the same time i think we might see things slowly dollars, but the way the way before. so there is, there is a bit of a company is going on on perhaps this holy be a tax issue. 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 seeing the why the context all of you are being worried about is competitiveness more generally. and there is a big report to, to, to come out by the form ahead of the, to be. and then of course, in a prime minister. well, it's of the my a druggie who is a very concerned and i'm just obviously being ready, influential and financial with the commission in terms of distressing the needs to take steps to become a web student 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 what's just been a now. so the terrace of from china. what you may actually see is a 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 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 training is the manufacturer is 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 the us product. so i want and so hopefully 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 that terrace, then cos the lease will be expensive into europe. 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 electron 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 to better avoid. it's very important to us for the time of change about the climate change and that needs to be there. you are paid the industry which has to go, it does, can economies and for the need to uh, price aggressive 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 cooperation. this is the interest of us a brandon house that does we do appreciate a short shot. the sauce of ounces. 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 elda 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 somebody told me to cry in the and tides. good bye for now, the,

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the the what you will just bear with me. so robin in the whole reminder of all the top stories is really ministry, a step step of tax and the southern gaza strip. it comes a day after the is really ministry stuff it's, it's biggest one day last since january at least 2 palestinians have been killed and strikes and rough as tall i'll so tom neighborhood to i'm billions vehicles with struck qual, paramedics, we're recovering. the biology is not on site today and uses right. the soldiers were killed in the same area to others by the soldiers are killed and fighting in the know the smith has this report from a mom and just