Tu Xinquan: Win-win cooperation between industries can reduce the possibility of conflict
(Source: "Beijing News" 2024-07-31)
In the past month, the Ministry of Foreign Affairs and the Ministry of Commerce have repeatedly spoken out about the EU’s anti-subsidy investigation into Chinese electric vehicles.
“The countervailing investigation initiated by the European Commission this time is different from the past. It was not initiated by the enterprise or w88 union, but was initiated by the European Commission itself. This is very rare in terms of procedures and has certain political considerations.”Tu Xinquan, Dean of the China WTO Research Institute at the w88 casinoIn an exclusive interview with Shell Finance, he said that the purpose of the European Commission's move is to leave more time and space for its own automobile industry to transform.
Tu Xinquan, Dean of the China WTO Research Institute at the w88 casino. Photo provided by interviewee
Talk about investigation
The EU uses w88 restrictions to give the automobile industry more time to transform
Shell Finance:Why does the European Commission impose temporary countervailing duties on Chinese electric vehicles?
Tu Xinquan: I think one of the important reasons ismy country’s new energy vehicles are highly competitive. With the support of intelligent, electrified and connected technologies, ChinaChina's cars are like a "new species", which makes the European Union feel threatened. Therefore, they hope to block the rapid growth of Chinese automobiles through w88 restrictions.
China's new energy automobile industry is developing faster and achieving more outstanding results. The penetration rate of new energy vehicles in my country continues to rise. In 2023, the penetration rate of new energy vehicles in my country will exceed 30%. In terms of product technology, China's new energy vehicles are already in a leading position. After sufficient verification in the country, car companies chose to go overseas to more countries.
As a developed economy, the EU is not only the initiator of the concept of green development, but also a very important market for electric vehicles. Users in European countries are generally more receptive to electric vehicles, so Chinese car companies have gradually launched plans to export new energy vehicles to Europe. This is a very natural process, but the relative competitiveness of my country's auto companies has put EU local auto companies at a disadvantage in the competition with new energy and intelligence.
From a time perspective, it has only been two or three years since my country's new energy vehicle companies entered Europe. Their size is not large, but their momentum is very strong. In order to protect its own industries and enterprises and block the rapid growth of Chinese automobiles, the European Commission has adopted restrictive measures. But it needs to be clear that there are many unreasonable things in the European Commission’s actions.
For new energy vehicles, all countries basically hold a positive attitude. By replacing fuel vehicles with new energy vehicles, global carbon emissions can be reduced. The earliest goal based on environmental protection, EuropeThe United States is vigorously promoting the development of new energy vehicles. Therefore, I believe that the general trend of electric transformation and green transformation of the global automobile industry will not change.
Shell Finance: What are the international competitive advantages of China’s new energy vehicles?
Tu Xinquan:From the perspective of the industrial chain, including battery R&D and production, electric vehicle production design, and charging infrastructure, the European automobile industry still has many shortcomings compared to the Chinese automobile industry.
my country’s new energy vehicles are excellent in the application of intelligence, automation and electrification. It can be said to have created a “new species”.
In the emerging market of new energy vehicles, Chinese car companies have shown great vitality, but the transformation of traditional European car companies has been very slow.
So, I believe that the European Commission’s move is a w88 restriction measure in order to give its automobile industry more time and space to transform.
Talk about coping
The competent authorities have already intervened during the preliminary ruling stage
Shell Finance: What are the unreasonable aspects of the European Commission’s investigation?
Tu Xinquan:The countervailing investigation launched by the European Commission this time is different from the past. It was not applied by enterprises or w88 unions, but was initiated by the European Commission itself. This is very rare in terms of procedures, and it is also suspected of overstepping one's duties. From a certain perspective, the European Commission's actions have certain political considerations.
The structure of the countervailing investigation is divided into two stages. The first stage is the preliminary investigation stage. After this stage is completed, the preliminary ruling results that you see now will be produced. The preliminary investigation process is relatively simple,Can be understood as "prove it to yourself". The European Commission will collect evidence through the Internet, literature or domestic market research and draw a preliminary conclusion.
In addition, the European Commission will also investigate companies, such as by calling or sending questionnaires. If the Chinese company does not provide relevant data, the European Commission may determine that there is indeed a problem with the company.
However, in this investigation, the European Commission’s questionnaires and phone calls also seem to involve the core business secrets and technical secrets of some companies. Such an investigation is very abnormal. Because countervailing investigations generally only consider price issues, which may involve subsidies, taxes, land rents and even water and electricity bills, whether it is necessary to involve core technology secrets still needs to be considered.
We have noticed that this time the European Commission is more detailed when raising questions about Chinese companies than in the past, so it is very difficult for companies to make complete preparations in a short period of time. Whether to provide their own technical secrets will also make Chinese companies hesitate.
Overall, we believe that the preliminary conclusions made by the European Commission are incomplete and unconvincing.
Sheike Finance: What kind of signals do the competent authorities send out multiple times?
Tu Xinquan:According to common practice, when Chinese companies encounter countervailing investigations, relevant departments, including the w88 Remedy Bureau of the Ministry of Commerce, will contact relevant parties to communicate information.
But usually, our government will not intervene in the preliminary ruling stage, and consultations with relevant parties are in the final stage.
This time the situation is more special. It may be that the automobile industry is relatively large, involves a wide range of areas, and has relatively large political influence. At the preliminary ruling stage, Chinese officials have been more formally involved and provided stronger support, and the level of consultation is also higher than before.
In terms of specific consultation methods, the two sides will first talk about facts and reasons. From a macro perspective, we can talk about the cooperation between China and the EU in the automobile industry. From a micro perspective, we can talk about what kind of problems there are in the European Commission's investigation process. For example, the issues mentioned just now, such as too short process, insufficient time, and too demanding requirements, can all be included in the consultation. The purpose is to find a win-win point through communication and negotiation, terminate the other party's countervailing investigation or reduce the tax rate, narrow the scope, etc.
Talk about going overseas
Win-win cooperation between industries can reduce the possibility of conflict
Sheike Finance: The European Commission is expected to make a final ruling in early November. How will Chinese car companies respond before the final ruling is announced?
Tu Xinquan:At present, the investigation process is not over yet, and Chinese companies must actively respond to the investigation.
The European Commission is following a legal process,Our business can respond accordingly in the process. First of all, companies can hire lawyers and accountants to provide more detailed evidence to the European Commission, including some unreasonable aspects of the other partyFile a plea. Because the European Commission still needs to hold hearings and on-site investigations, I think Chinese companies still need to continue to do a good job and be fully prepared in terms of procedures.
In addition, although I just said that the European Commission's actions have political considerations, it is also a very important way to achieve a win-win situation through cooperation between industries.
Some European companies have felt the competitive pressure brought by Chinese car companies, and both parties can also try to find ways to cooperate to reduce these companies' concerns. Such as mutual investment, technology sharing, and sales network entry, etc., in order to expand common interests and reduce the possibility of conflicts.
Shell Finance: What are your predictions for the future development of this case?
Tu Xinquan:I am only expressing my guess that the final countervailing duty does not rule out the hope of cancellation. Many parties, including my country's competent authorities, associations and enterprises, have made a lot of efforts to seek w88 fairness, hoping that countervailing duties will eventually be cancelled.
Further,Another solution to countervailing duties is "price commitment", which is for Chinese export companies to set a standard for their export prices and increase export prices. In this way, competitiveness will be weakened and sales may be affected, but there will be no need to pay taxes and profits will be higher. This is also a method.
Beike Finance: Facing changes in the overseas environment, how can Chinese car companies better “go global”？
Tu Xinquan:Judging from the current anti-subsidy tax rate, Chinese companies are still affected. After all, as costs increase, prices will also increase, but in the long term, there will be no opportunities at all. Tariffs are not a complete prohibition. Chinese car companies can still enter the European market, but prices and scale may be adjusted.
I think that on the one hand, Chinese car companies should continue to explore the European market and try to minimize the impact of additional tariffs on them through adjustments to corporate pricing strategies and investment cooperation between Chinese and European companies. Companies can also consider technology licensing, parts export, and factory investment to enter Europe.
On the other hand, new energy vehicles have a relatively mature market in Europe, but there are still many emerging markets for Chinese companies to explore. Some Chinese car companies have begun to launch overseas strategies in Southeast Asia and Latin America.
Attachment: Original report link
