WEBVTT

1
00:00:01.210 --> 00:00:04.930
If you're based in the EU and looking
to buy an electric vehicle from

2
00:00:04.930 --> 00:00:08.170
China, get ready to pay a bit more.

3
00:00:09.640 --> 00:00:14.310
In a divided board, EU states backed
hefty additional tariffs on EV's

4
00:00:14.310 --> 00:00:16.050
imported from China.

5
00:00:16.360 --> 00:00:21.750
It's not as much as the 100% import
duties the US or Canada placed on

6
00:00:21.750 --> 00:00:25.870
Chinese E VS earlier this year, but
it's still a significant move on a

7
00:00:25.870 --> 00:00:29.510
global level, it points to a
pivot towards protectionism.

8
00:00:29.830 --> 00:00:33.310
Other countries are also using
border measures to make sure that

9
00:00:33.310 --> 00:00:39.110
their own autonomous 
climate policies are not deluded.

10
00:00:39.710 --> 00:00:43.310
Or counteracted by
international market forces.

11
00:00:44.110 --> 00:00:47.670
It also highlights the shifting
balance of power within Europe

12
00:00:47.670 --> 00:00:49.159
on China policy.

13
00:00:49.229 --> 00:00:53.470
On one side, there's German
Chancellor Olaf Schultz and the CEOs

14
00:00:53.470 --> 00:00:55.770
of the leading German car makers.

15
00:00:56.030 --> 00:00:56.820
Their concern?

16
00:00:56.830 --> 00:01:00.630
China will respond by restricting
the export of critical materials.

17
00:01:00.790 --> 00:01:05.670
German car makers need to make EV
batteries, and that escalation could

18
00:01:05.670 --> 00:01:10.410
hit their sales in China,
the biggest foreign market for german cars.

19
00:01:11.520 --> 00:01:16.110
They oppose the tariffs, fearing the
German EV produced in China will be

20
00:01:16.110 --> 00:01:20.790
subject to higher import
tariffs, making them more expensive.

21
00:01:22.810 --> 00:01:27.050
On the other side is the European
Commission, led by Ursula Fonderline,

22
00:01:27.290 --> 00:01:31.730
who believes China is undermining the
European car industry by subsidizing

23
00:01:31.730 --> 00:01:35.530
domestic EV production and
fuelling an unfair market.

24
00:01:35.690 --> 00:01:41.170
The Commission, but also capitals
in Europe, increasingly see China as

25
00:01:41.170 --> 00:01:42.860
a economic threat.

26
00:01:44.600 --> 00:01:48.200
Some, some would also say, you know,
Chinese overcapacities, for instance,

27
00:01:48.400 --> 00:01:51.020
are threatening employment in Europe.

28
00:01:51.080 --> 00:01:54.680
Last year, she went as far as
opening an anti subsidy probe

29
00:01:54.680 --> 00:01:56.340
into China's actions.

30
00:01:57.140 --> 00:02:00.180
We must defend ourselves
against unfair practices.

31
00:02:00.180 --> 00:02:05.100
The vote by EU member states to place
additional duties on Chinese EVs is a

32
00:02:05.100 --> 00:02:09.660
sign that Germany is losing its
authority in the bloc and that the EU

33
00:02:09.660 --> 00:02:13.020
is no longer willing to cave
to trade pressure from China.

34
00:02:13.870 --> 00:02:17.130
But both sides are willing to
negotiate even as the tariffs

35
00:02:17.139 --> 00:02:18.430
go into effect.

36
00:02:18.620 --> 00:02:21.740
Analysts point out that there
is no winner in this dispute.

37
00:02:22.560 --> 00:02:26.360
What we are seeing now is
unfortunately situation where because

38
00:02:26.370 --> 00:02:29.520
of the increase in
protectionism, we're throwing out

39
00:02:29.840 --> 00:02:31.860
the baby with the bathwater.

40
00:02:31.870 --> 00:02:34.850
They will not solve the crisis
in the European car industry.

41
00:02:35.389 --> 00:02:38.790
Despite its threats to place
retaliatory tariffs on European

42
00:02:38.790 --> 00:02:43.630
Brandy, pork and dairy products,
which amount to nearly €2 billion in

43
00:02:43.630 --> 00:02:48.750
trade volume per year, car industry
analysts believe China isn't really

44
00:02:48.750 --> 00:02:52.750
willing to engage in a trade
war, especially as it condensed with

45
00:02:52.750 --> 00:02:54.070
a struggling economy.