EU restrictions on China's electric vehicles will increase its dependence on fossil energy

The EU's imposition of tariffs on China's electric vehicles for immediate benefits is a typical trade protectionist act. It not only hinders the global green and low-carbon transformation process, but will also have long-term adverse impacts on the EU's energy independence and economic security.

Protectionism has overshadowed the EU's "green development banner" and undermined global confidence in cooperation on climate change.Relevant research in Germany shows that the cumulative carbon emissions of electric vehicles during the entire life cycle are 36% lower than those of diesel vehicles of the same class. In 2023, among the electric vehicles sold in the EU, about 300,000 are produced in China, accounting for 19.5%; it is estimated that each electric vehicle can reduce carbon by about 1.66 tons per year, which is equivalent to China's electric vehicles helping the EU reduce carbon by 498,000 tons every year.

The EU has always regarded itself as a "pioneer" in global green transformation. It has successively proposed to reduce net greenhouse gas emissions by at least 55% compared with 1990 levels in 2030, ban the sale of fuel cars and small vans from 2035, and achieve carbon neutrality by 2050. Goals, try to open up a new track for green development and seek new advantages in global development competition. The EU also launched the Carbon Border Adjustment Mechanism (CBAM) on the grounds of reducing carbon emissions to impose taxes on "carbon leakage" imports. However, in the face of the rapid development of clean and low-carbon electric vehicles in China, it has tried to limit fair competition through protectionist means such as tariffs. If the EU insists on imposing tariffs on Chinese electric vehicles, it will cause countries around the world to strongly question the sincerity and quality of the EU's "green development" and shake global confidence in cooperation on climate change. As articles such as the British Times and Spain's Intifada pointed out, the EU is asking consumers to switch to electric vehicles while trying to block the supply of cost-effective electric vehicles. This is ridiculous.

Limiting China's electric vehicles will increase dependence on fossil energy and is not conducive to the EU's "energy autonomy" and economic security.The EU has long been highly dependent on energy imports, with external dependence on natural gas and oil both above 90%. Since the outbreak of the Russia-Ukraine conflict, the EU's energy supply has become more tense, and it has even purchased American natural gas at high prices, posing a severe challenge to its economic development and energy autonomy. Some EU economists point out that high energy prices have put European companies at a disadvantage in the global market. German Volkswagen, BASF and other companies have shifted production capacity to foreign countries due to high energy prices in Europe. The United States took the opportunity to introduce a series of protectionist subsidy policies such as the Inflation Reduction Act, further exacerbating the pressure on EU industries to relocate abroad.

Relevant German data platforms show that European electric vehicles will replace about 6.1 billion liters of gasoline in 2022, which will help reduce dependence on fossil energy. However, the penetration rate of new energy vehicles in the EU will stagnate from 2023 and fall to less than 20% in 2024. The important reason is the lack of products that satisfy consumers. The British "Financial Times" reported that from January to April 2024, against the background of the EU's countervailing investigation on Chinese electric vehicles, the number of Chinese-made electric vehicles registered in Europe still increased by 32% year-on-year, reflecting EU consumers 'interest in China. The favor of high-quality electric vehicles. In this context, if we violate market rules, ignore the rights and interests of consumers, and insist on imposing tariffs on Chinese electric vehicles, it will greatly reduce EU consumers 'car purchase choices, further push up consumers' car purchase costs under the pressure of high inflation, and drag down the EU. The popularization process of new energy vehicles will ultimately harm the EU's own interests.

Green and low-carbon development is an inevitable choice for the development of human society. We cannot hold high the banner of green development while engaging in protectionism to hinder green development. China will unswervingly follow the path of green and low-carbon development, resolutely oppose EU protectionism, and take all necessary measures to safeguard the legitimate rights and interests of its enterprises.

Original title:EU restrictions on China's electric vehicles will increase its dependence on fossil energy, not greedy for temporary benefits and hinder green and low-carbon transformation-Part 3 of a series of comments on "Oppose Trade Protectionism and Maintain Economic Globalization"