European Union member states voted on October 4 to impose tariffs on Chinese electric vehicles. The tariffs will be as high as 45% and last for at least 5 years. 10 nations stand in favor of tariffs. While 12 nations chose not to vote and 5 criticized it. If no compromise is reached, then the tariffs will start soon.
These decisions affect more than just cars. However, to handle the tariffs efficiently, many electric vehicle companies in China adjust their profits. Different nations across the European Union have different stances. This shows a divide in how to deal with China’s growing economy. This lack of agreement might prevent Europe from developing a strong plan against China.
Germany surprised many by changing its vote from abstaining to opposing the tariffs, mainly due to pressure from German car makers. They worry that these tariffs could lead to retaliation from China, hurting their exports and investments. This situation highlights the challenges in EU decision-making and the tensions between member states. Additionally, this lobbying pressure played a crucial role in shaping Germany’s position.
This decision of Germany highlights its closeness to Beijing compared to other European Union economies. It is the only major EU nation that has criticized the measure. This opposition from Germany makes it a key roadblock to stronger EU policies against China. This move also affects the people of the US. It raises worries in the United States about Europe’s ability to reduce its economic dependence on China.
Germany and France both have different approaches. France’s support is tougher towards China. This nation stands in favor of tariffs. This division between the two key EU countries plays into China’s strategy of dividing Western allies to avoid joint actions, such as export control.
The vote also shows China’s struggle. How this nation is making an effort to gain support from smaller European Union economies. In 2023, Hungary received the most Chinese investment in Europe. Hungary also criticized the tariffs policy. This support of Hungary towards China highlights how China’s investments are helping it win favor with some EU countries.
It seems that China’s strategy of threatening the European Union nation is failing. China threatened Spain about cutting pork imports, but still, Spain decided to not vote. Ireland voted in favor of tariffs, ignoring threats to its dairy exports. This highlights that building diplomatic relationships proves beneficial as compared to pressuring nations.
Hungary and Germany are the two nations that are more friendly towards China. At the same time, Poland and the Baltic states are against China. Their strong stance against China partly comes from their tougher views on Russia.
These countries see the growing ties between Russia and China as a major concern, especially since China isn’t stopping the sale of goods that could be used for military purposes to Russia. This worry is likely to make more EU countries link their policies to China and Russia, creating a more unified approach in the future.
EU nations are divided on how to deal with China. No country has a clear, unifying strategy. Some nations are worried about China’s growing economic power and its support for Russia. At the same time, other nations value their own economic interest. Greece, Cyprus, and Malta are the great supporter of Russia. They chose not to vote, highlighting these divisions. This support may permit China to influence these nations and create further disagreements within the EU.
The recent EU vote on tariffs against Chinese electric vehicles doesn’t show a strong stand against China. Instead, it reveals how split the EU is. Some members are worried about industrial issues, while others want to maintain good trade relations with China. These differences mean the EU’s relationship with China will likely remain difficult and inconsistent, which could benefit China by exploiting the lack of unity among EU member states.
