BRUSSELS – For much of 2024, electric vehicle EV disputes have weighed heavily on the economic and trade ties between China and the European Union EU What started as an EU investigation in late 2023 spiraled into a year-long clash with additional tariffs imposed by the EU on Chinese-made EVs. However, with negotiations still ongoing, it is clear that neither side is ready to give up on finding a way forward.

Chinese car manufacturers once viewed Europe as an open and promising market. The EU’s “non-market” measures are eroding their trust and confidence.A report published Monday by the China Chamber of Commerce to the EU CCCEU in partnership with global consultancy Roland Berger, paints a sobering picture of strained ties and growing unease among Chinese businesses operating in the bloc.The report, based on a four-month survey and in-depth interviews with around 200 Chinese businesses in the EU, underscores that “uncertainty” has become a defining factor for Chinese enterprises operating in the EU.

Chinese businesses have expressed concerns about the growing politicization of commercial sectors and urged the EU to create a fair, transparent, and predictable market environment for foreign enterprises, the report says. Meanwhile, Brussels-based economic think tank Bruegel has said in a different report that the EU’s punitive tariffs on Chinese battery electric vehicles are a mistake, which will do more harm than good. Trade disputes also tend to have spill-over effects, it said, and such disputes between the EU and China will strain overall bilateral relations.High tariffs on Chinese EVs are harmful to the future of the European economy, Croatian analyst Mladen Plese said in an interview with Xinhua in September. Europe should be ready for healthy competition with China, and must not follow the United States’ lead when it comes to tariffs on EVs, he said, adding, “It is in the interests of everyone in Europe to cooperate with China.

Beyond the EV sector, other industries critical to Europe’s green transition such as battery manufacturing, solar panels, wind turbines, and hydrogen technology, have also faced various challenges from the EU. The economic relationship between China and Europe is indeed facing new challenges, Denis Depoux, global managing director at Roland Berger said, noting that the EU’s complex positioning of China forces businesses to navigate an unpredictable and delicate balance.

(Xinhua)