TrueValueMetrics ... Impact Accounting for the 21st Century

Date: 2025-07-03 Page is: DBtxt003.php txt00027522

INTERNATIONAL TRADE CANOLA & ELECTIC CARS / CHINA -V- CANADA China's BIG Decision Shocked CANADA: What the Hell is Going On? PLAY YOUTUBE VIDEO Original article: https://www.youtube.com/watch?v=QYXHs_tTD84 Peter Burgess COMMENTARY Trade is not easy to 'manage'. I am well aware of the economic logic of markets and 'free' trade and the way all the 'economic actors' behave when they are 'free' and unconstrained by 'rules'. The history of 'trade' has been pretty brutal. Many of the most heinous aspects of trade have been addressed over time, but the core concepts of trade and supply and demand remain essential pillars of thinking about trade. The ways 'trade' is gamed for profit maximisation by powerful actors exists today, just as it has in times past. The scale of trade is huge ... bigger than it has ever been. In addition, the technology that enables trade has become very sophisticated and at a huge scale. The multiple products addressed in this video are fascinating ... starting with canola and electric cars and bilateral trade between China and Canada ... with a lot at stake for both countries and thousands of human participants in the various industries. Given the complexities of global trade, it is worth celebrating that it works so well ... until it doesn't! Peter Burgess
China's BIG Decision Shocked CANADA: What the Hell is Going On? BlowMe AI Oct 5, 2024 57.4K subscribers ... 103,789 views ... 1.5K likes China has hit back against Canada's new tariffs on Chinese-made EVs and metal products, and the impact is already being felt. In retaliation, China has launched an anti-dumping investigation into Canadian canola imports, threatening one of Canada's most valuable agricultural exports. This escalating trade dispute is reshaping relations between the two countries and could cost Canadian farmers billions. In this video, we dive deep into the key events, how this impacts Canada's economy, and what it means for the future of global trade. Join this channel to get access to perks: / @blowmeai Transcript 0:00 prime minister Justin Trudeau announced Canada would be imposing a tariff on Chinese made electric vehicles as well as on Chinese aluminum and steel China has launched a retaliatory strike against Canada that threatens to devastate one of the country's most vital agricultural exports Canadian canola farmers are bracing for the possible loss of one of their best customers China the impact a political decision on the other side of the world has a direct impact on our bottom line Beijing has launched an investigation into what it calls potentially unfair Trade Practices accusing Canada of dumping cheap canola into the Chinese market this aggressive move comes as a direct response to Canada's recent implementation of tariffs on Chinese made electric vehicles and Metal Products well Jus in sure to announce that there will be a 100% tariff on all Chinese made EV EVS or he heavily subsidized ones and as well a 25% tariff on steel and aluminum coming from China 1:01 now this is a change that's in line with the US that move forward with these tariff hikes in May and since then there have been calls from the industry Ontario's premere and experts to move forward when governments take actions uh to support um certain sectors or industry um there is risk um to exposing others last year Canada exported $5 billion dollar worth of canola to China it's going to be a long and difficult path there's no easy sitcom problem solved before the next commercial break here on October 1st 2024 Canada took the bold and controversial step of imposing tariffs on Chinese made EVS effectively doubling their price in the Canadian Market this measure was swiftly followed by an announcement of a 25% tariff on Chinese steel and Aluminum Products set to take effect on October 15 2024 these actions align Canada with its allies the United States in the European 2:00 Union in their efforts to counter what they perceive as unfair Chinese Trade Practices prime minister Justin Trudeau Justified these measures stating actors like China have chosen to give themselves an unfair advantage in the global Marketplace compromising the security of our critical Industries and displacing dedicated Canadian Auto and metal workers so we're taking action to address that the Canadian government's rationale centers on protecting domestic industries from what it sees as China's State directed policy of over capacity and over Supply as well as concerns over labor and environmental standards in Chinese manufacturing China has become the first nation to sell over 1 million EVS in a single month this Milestone achieved in August underscores China's dominance in the global EV Market Chinese automaker byd has now surpassed Tesla in global sales in response to this growth and perceived threat to domestic Industries Canada has imposed a 100% tariff on 3:01 Chinese made EVS igniting a fierce trade dispute that threatens to reshape the North American Automotive landscape the scope of Canada's tariffs is Broad and far-reaching encompassing a wide range of chinese-made EVS including electric and certain hybrid passenger automobiles trucks buses and delivery Vans it's worth noting that the 100% tariff comes on top of the existing most favored nation import Tariff of 6.1 1% already applied to EVS produced in China and imported into Canada this move brings Canada in line with the United States which quadrupled its tariffs on Chinese EVS to 100% in May 2024 and the European Union which imposed duties of up to 36.3% on Chinese M EVS China's response was Swift targeted and potentially devastating for Canada's agricultural sector on October 2nd 2024 the Chinese 4:00 Commerce Ministry announced plans to launch an anti-dumping investigation into Canadian canola Imports this move strikes at the heart of Canada's agricultural economy with Canola being a major export crop in 2023 alone Canadian canola exports to China were valued at a staggering $ 3.47 billion making China the second largest market for Canadian canola after the United States this is now China saying okay you've accused us of this well we're going to accuse you of doing that this was not a surprise to anybody the Chinese Ministry statement was pointed an accusatory claiming that Canadian canola exports to China have increased significantly while prices have continued to fall suggesting that Canadian exporters were suspected of dumping products into the Chinese market this language mirrors accusations often leveled by Western countries against Chinese manufacturers turning the tables on Canada in this High Stak trade dispute a spokesperson for China's 5:02 Commerce Ministry stated that Canada's actions will disrupt the stability of global industrial and Supply chains and seriously undermine economic and trade rules the severity of China's reaction was further underscored by the foreign Ministry spokesperson who declared that China would take all measures necessary to safeguard its economy the potential impact on Canada's canola industry is nothing short of catastrophic a report by Morning Star dbrs an international credit rating agency estimates that the Canadian canola industry could face a devastating $1 billion hit as a result of China's trade actions this figure becomes even more alarming when compared to the Fallout from a previous trade dispute in 2019 which cost the Canadian canola sector between 1.5 billion and $2.4 billion over two years this isn't the 6:00 first time Beijing has come after the key crop it barred Canadian Imports in 2019 a ban that lasted three years the trade restrictions and imprisonment of Michael kovrig and Michael spavor were seen as retaliation for the arrest of wuwei executive Mong wanjo the historical context of Canada China canola trade adds another layer of complexity and urgency to the current situation in 2019 China blocked shipments from two major Canadian canola exporters Richardson International and Veta this action widely seen as retaliation for Canada's arrest of Huawei executive mang Wan Joo led to a dramatic drop in canola exports from 4.87 million tons in 2018 to just 1.54 million tons the following year it took until 2023 for sales to bounce back to 4.59 million tons after 4 years of significantly reduced 7:03 volumes in 2019 China suspended two Canadian canola exporters before removing the restrictions 3 years later a move seen likely in response to the arrest of wuwei executive mongan Joe the fact that they are calling this an anti-dumping investigation it's all pre-ordained we know that they will impose a tariff I expect that it will be 100% similar to the the Tariff impose on uh Chinese EV the impact of China's latest move is already being felt acutely by Canadian Farmers Rob Stone a canola farmer near Davidson Saskatchewan described the news as devastating adding the markets reacted very negatively to the news Stone estimated that the price drop could cost Farmers about $2 per bushel potentially amounting to a staggering $100 per acre he expressed his frustration and helplessness saying the 8:01 fact that can happen is absolutely enraging but we only do what we can do here on the farm gate talk about those things and share our story about how we're affected Ian boxall president of the agriculture producer Association of Saskatchewan echoed these concerns noting that this latest development adds to an already challenging year for Farmers this year's been every time you turn around the farmers kind of got a little shot in the gut right boxall REM marked referencing labor disputes on Railways and at ports as well as drought conditions that have plagued the sector the Canadian government has been quick to defend its actions and reassure the agricultural sector but their words may ring Hollow for Farmers facing potential ruin Deputy Prime Minister and Minister of Finance chrisa Freeland stated we are moving in lock step with key International Partners to protect Canadian workers and businesses in our steel and aluminum sectors from China's int intentional state-directed policy of 9:01 overc capacity and over Supply which is undermining Canada's ability to compete in domestic and Global markets Mary Ang minister of export promotion international trade and economic development added China's non-market policies and practices create an unfair playing field for businesses and undermine the success of Canadian workers our government will always defend our national interest and the best interests of Canadians agriculture Minister Lawrence m emphasized the government's commitment to supporting Canadian Farmers stating our producers depend on and play by a rules-based global trading order that provides reliable Market access today's announcement is deeply concerning and I am working with my colleagues across government and in the sector to monitor developments closely Canada's minister of Agriculture is responding to the move from the Chinese government Lawrence MCCA writes our producers depend on and play by a rules-based global trading order that provides reli Market access today's announcement is deeply concerning and I am working with my 10:03 colleagues across government and in the sector to monitor developments closely the quality of Canadian canola is well known around the world we will continue to defend and support the sector every step of the way the situation has sparked intense reactions at the provincial level particularly in western Canada where the agricultural impact is most acute Saskatchewan Premier Scott Mo expressed his province's deep concern over China's anti-dumping inest investigation the Saskatchewan government went so far as to send a letter to Ottawa urging quick resolution of the issue and reminding the federal government that Saskatchewan Farmers had already bear the brunt of Chinese retaliation in the past referring to 2018 when a market access ban on canola led to a decrease of more than $1 billion in exports to China from Saskatchewan well as you kind of talked about this isn't the first trade barrier that we've had to face um in farming we don't get into it for the great hours it's the great pay but it's a good view uh from our office um this is yeah just 11:07 one more like pothole on the road um it's definitely going to have a Major Impact possibly more so for my Western counterparts than for myself in Ontario because we thankfully have three Crushers in Eastern Canada one's been on strike all year but hopefully they open again soon but this definitely devastates the price for everybody and and yeah it's just one more more away at it um it definitely makes it us concerned uh it's already dropped the price and uh but at the same time Farmers we think like generationally right like we're thinking systems so like I have my crop plan for the next few years already planned based on crop rotation based on you know helping reduce pesque risk work on biodiversity keep my beneficials doing well and just manage our workload so yeah so we've got spring canola going here and then we're trying some winter canola uh it's a newer crop to Canada and uh we'll be planting it tomorrow if all goes well just so that we can have more crop 12:05 growing over the winter and spread out again a bit of our risk but uh yeah don't get me wrong I'm glad for my off- firm income right now David Merritt Saskatchewan's minister of Agriculture described the situation as saber rattling but acknowledged the immediate and significant impact on markets unfortunately the saber rattling pretty loud when you see the market Trend do what it did in one night virtually of WWE executive mongan Joe the fact that they are calling this an anti-dumping investigation it's all pre-ordained we know that they will impose a tariff I expect that it will be 100% similar to the Tariff impos on the Chinese EVS China says it's turning to the World Trade Organization to resolve this dispute with Canada meanwhile the federal government says it's prepared to defend its agriculture sector as Farmers remain in the middle of another tit 13:00 fortat trade battle over matters beyond their control Olivia stepanovic CBC News Ottawa the trade dispute has broader implications for Canada China relations and highlights the challenges Canada faces in navigating its relationships with both China and the United States us White House National Security adviser Jake Sullivan emphasized the importance of Canada's alignment with us policy stating being on the same page between the US and Canada particularly as we enter a year where Canada will be chairing the G7 is vital for US National Security for our priorities and we believe it's vital for the broader free world as well impose on the Chinese EVS China says it's turning to the World Trade Organization to resolve this dispute with Canada meanwhile the federal government says it's prepared to defend its agriculture sector as Farmers remain caught in the middle of another tit fortat trade battle over matters beyond their control Olivia stefanovich 14:06 CBC News Ottawa Canada's minister of Agriculture is responding to the move from the Chinese government Lawrence MCCA writes our producers depend on and play by a rules-based global trading order that provides reliable Market access today's announcement is deeply concerning and I am working with my colleagues across government and in the sector to monitor developments closely the quality of Canadian canola is well known around the world the impact of these trade tensions extends far beyond the agricultural sector affecting multiple Industries crucial to Canada's economy Canada's autom manufacturing industry which supports 125,000 jobs and its steel and aluminum sectors providing more than 130,000 jobs are at the Forefront of this dispute the Canadian government argues that China's practice practices threaten these critical Industries and the 15:02 workers they employ China's dominance in the global EV Market is a central factor in this dispute since 2020 China has emerged as the world's largest manufacturer and exporter of EVS in 2023 China's annual EV exports totaled an astounding 47.2 billion a staggering increase from just 0.2 billion in 2018 Canadian officials attribute this rapid growth to extensive State subsidies and other non-market practices employed by China as Canada seeks to establish itself as a key player in the global EV industry the federal government has made significant investments in the auto sector these include funding for battery plants in St Thomas and Windsor Ontario and a multi-billion doll expansion of Honda's Alliston Ontario plant for Ev production these Investments are part of a broader strategy to transition to a net zero economy with over $60 billion allocated 16:03 to grow the economy and create jobs in clean technology sectors Francois Philipe champagne minister of innovation Science and Industry highlighted the importance of these Investments stating as the world moves to reduce pollution and keep our air clean we have attracted historic investments in building EV manufacturing capacity and creating goodp paying jobs here in Canada however critics argue that the tariffs could have unintended consequences for Canada's own climate goals and EV adoption rates Andrew Bell a director with the electric vehicle association of Alberta called the Tariff an unnecessary barrier to EV adoption here the Canadian government is trying to encourage Canadians into electric vehicles here's a high quality lowcost option he said noting that the tariffs would effectively double the price of chines EVS in Canada the dispute has also 17:02 highlighted the challenges of economic diversification for Canada while the government has been encouraging businesses to reduce their Reliance on single markets the reality is that China remains a crucial trading partner in 2023 Canadian exports to China for agriculture hunting forestry and fishing all increased underscoring the difficulty of quickly pivoting away from established trade relationships the international dimension of this dispute is significant and far-reaching China has filed a complaint with the World Trade Organization over Canada's tariffs accusing Ottawa of violating WTO rules the Chinese Commerce Ministry stated thanks for having me on David how worried are you as a government uh I know canola is is an important crop how worried are you by these signals coming out of China well obviously we're concerned about it it impacts obviously not only sasat but virtually a lot of provinces here in Canada Alberta saskat and 18:02 Manitoba and even Ontario to a big degree as well uh there's a lot of canola growing in this country and uh you know we just saw an impact on it as of just the announcement of launching the investigation where we saw a downward Trend in the markets uh just overnight so it's concerning for us uh uh obviously China is a is a big partner for for sukatan products over5 a half billion dollars in total products to China in 2023 uh obviously canola leads the way but Canada has disregarded WTO rules and violated its commitments within the WTO by proposing to impose additional tariffs of 100% And 25% the situation has sparked intense debate within Canada about the long-term implications of these trade actions some industry Watchers are calling for the government to provide a timeline for the tariffs suggesting they should be a short to medium-term measure Steven Bea a board member of the electric vehicle Society suggested it needs to be defined as a 5-year or 7-year program the eu's 19:06 decision to impose tariffs on Chinese electric vehicles set off an unexpected Chain Reaction China's strategic response not only threatened European Industries but also exposed critical vulnerabilities in Western Supply Chains It's achieved this with break neet growth in the industry fueled by government subsidies the problem with this is that the European and Americans are saying that that's given Chinese Brands an unfair advantage on price that they've been able to flood markets in other countries at rates that local Brands can't compete with and they're threatening to put tariffs on Chinese cars to level the playing field the counterargument to that though is that at the beginning you needed to have such subsidies the European Union has been embroiled in a heated debate 20:01 for several months regarding the imposition of additional taxes on China's new energy Vehicles the attitudes within the EU have been notably divided with some countries advocating for higher taxes to protect their local automobile Industries While others Express concerns about potential retaliation from China in August 2024 the EU ultimately decided to impose additional taxes on Chinese new energy Vehicles sold in the Europe Market an action that has been perceived as a direct challenge to China however the eu's sanctions have not only failed to intimidate China but have inadvertently created a significant opportunity for Russia the market share that originally belonged to the EU is now being seized by Russia which has swiftly reached agreements with China in the field of new energy Vehicles competition has intensified dramatically in recent years the gap between Europe and and its competitors particularly China and the United States has widened in key 21:03 disruptive Technologies China's electric vehicles and Battery Technology have demonstrated Superior performance and price advantages compared to similar products in Europe Chinese made models are approximately 20% cheaper than those produced in the EU this Competitive Edge has allowed China to capture 88.2% of the EU electric vehicle Market in 2023 with projections indicating this share could exceed 20% by 2027 faced with this growing pressure the EU has implemented a series of Economic Security and supply chain security strategies since last year these measures aim to reduce the eu's Strategic dependence on China in this drisking process the French government has been particularly vocal about the need to remain competitive in the global new energy vehicle Market in response to this challenge France along with several 22:00 other EU countries imposed tariffs on major Chinese automakers in June 2024 the tariffs were set at 17.4% 20% and 38.1% for byd gie and saic group respectively additionally a general Tariff of 21% was imposed on other manufacturers it's another step in an escalating trade dispute between China and the West the European commission drastic ially increased import tariffs on Chinese electric cars Chinese automakers would face duties as high as 38% up 10 up from the current 10% the block is reacting to China's W widening its Reach In global EV markets Brands like byd Gil and saic have been expanding abroad mostly due to their lower prices both the EU and the US are accusing Beijing of illegally subsidizing Chinese car manufactures the commission says the Tariff hike the European commission established a 10-day 23:06 window for companies to request a hearing if no hearing is requested or if a hearing is filed but no majority objection is obtained The Proposal will be passed this effectively means that the eu's taxation of Chinese electric vehicles is almost a foregone conclusion with final measures expected to be implemented within 4 months after the implementation of the temporary tax the eu's Tariff increase will create unprecedented cost pressure for Chinese electric vehicles exported to Europe data reveals that in 28 European countries 20% of newly registered electric vehicles are made in China in 2023 China's total automobile exports reached 4.6 million of which approximately 900,000 were new energy Vehicles the total value of these vehicles exported to Europe was us 11.5 billion accounting for nearly 57% of China's total automobile exports while Chinese automakers have shown impressive growth in the EU Market with exports 24:04 increasing by more than 100% year on-year the situation is becoming more complex the implementation of the eu's new tariff policy will further increase the price of Chinese cars in Europe widening the price Gap with local European cars this could potentially put Chinese manufacturers in a precarious financial position if they operate at a loss for an extended period in response to the eu's tough stance on automobile taxation Beijing has not remained passive in June 2024 China launched an anti-dumping investigation on pork exported from the EU covering pork and its byproducts this move is a significant blow to many EU countries as China is a crucial market for their pork exports China as one of the world's most populous countries consumes more than 55 million tons of pork annually accounting 25:00 for almost half of global consumption despite being a major pork producer itself China still needs to import large quantities of pork each year to meet domestic demand the majority of pork imported by China comes from EU countries such as Spain the Netherlands France Germany and Denmark these countries have traditionally enjoyed profitable pork exports to the Chinese market however the implementation of anti-dumping Duties threatens this important market for for EU pork producers for instance Spain one of the main pork exporters in the EU exported 560,000 tons of pork to China in 2023 if anti-dumping measures are implemented the Spanish pork industry could face losses of approximately $400 million industry experts predict that the entire eu's pork market share in China May decline sharply with sales volumes potentially dropping by 30% to 40% simultaneously pork prices are expected to rise by at least 20% eliminating the previous price Advantage enjoyed by EU producers the situation 26:06 has created divisions within the EU countries such as Germany Denmark Italy and Hungary have openly opposed the eu's policy of imposing tariffs on Chinese electric vehicles in an attempt to ease tensions the German minister of economy actively promoted dialogue between China and Europe particularly regarding the sensitive topic of additional tariffs on Chinese electric vehicles German economy Minister Robert habek is in China to discuss trade relations but a planned meeting with Premier leech young was cancelled at the last minute without explanation the cancellation comes amid growing Chinese anger over EU plans to increase tariffs on Chinese electric vehicles habc said the EU was open to negotiate but said that China's backing for Russia's war on UK Ukraine was what was really damaging 27:01 trade relations despite negotiations between the two sides the EU made only Minor Adjustments to the Tariff rates saic's Tariff was reduced from 38.1% to 36.3% still the highest among all manufacturers while byd's Tariff was reduced from 17.4% to 177% the EU Justified these high tariffs by citing excessive subsidies provided by the Chinese government to domestic car companies the issue has reached a deadlock to stop the eu's decision at least 15 member states need to vote against it however based on previous voting patterns within the EU only four countries clearly oppose the measure far short of the required number in an unexpected turn of events Russia has seized the opportunity created by this trade dispute when China announced potential sanctions on European pork Russia immediately took action signing numerous trade contracts with Chinese pork suppliers Russian pork companies 28:05 responded positively welcoming increased cooperation with China to ensure smooth pork exports according to Chinese Customs data China signed contracts with three Russian pork export companies in August 2024 resulting in the export of approximately 50,000 to 60,000 tons of pork to China Russia has stated that if China implements anti-dumping measur measures on EU pork products Russian pork will quickly fill the Gap the head of the Russian pig farming Enterprise Union revealed plans to capture 10% of China's pork import market within the next 3 to four years this development poses a significant threat to European pork companies potentially leading to their exclusion from the Chinese market for EU pork producers heavily reliant on Chinese demand this could be devastating the concerns of EU countries are growing German economic experts have pointed out that if Russia successfully replaces the EU as China's main pork supplier EU pork 29:07 exporters will face a surplus this oversupply could lead to a sharp fall in pork prices impacting the entire European pork Market China's countermeasures extend beyond the pork industry on 20 August 2024 following the European commission's announcement of its draft final decision on the anti-subsidy investigation of Chinese electric vehicles China's Ministry of Commerce announced an anti-subsidy investigation on dairy products imported from the EU the China Dairy and dairy products Association submitted applications to the ministry of Commerce which after a preliminary investigation deemed the evidence reasonable and officially launched an investigation on August 21st Russia has also made inroads into the Chinese dairy market as early as May 2024 one of Russia's largest Dairy companies began shipping milk to China by rail however the longdistance and complicated Customs procedures 30:04 result in a 23-day Transit time from Moscow to China Russian companies are actively seeking to improve Transportation methods to expand the range of dairy products they can export to China the eu's attempt to use sanctions to Target China's electric vehicle industry has inadvertently affected its own important Supply chains China's counter measures have been strategic avoid voiding overreaction while accurately targeting the eu's vulnerabilities the current situation has provided Russia with an opportunity to strengthen its economy in the face of the ongoing Russian Ukrainian conflict and Western sanctions in addition to the investigations on pork and dairy products the Chinese Ministry of Commerce has also initiated anti-dumping investigations on EU products such as Brandy if these investigations confirm issues China is lik to impose anti-dumping duties on these EU products 31:01 as well Russia's opportunistic response to the trade dispute between China and the EU has been Swift and strategic recognizing the potential Gap in China's pork Supply due to the antidumping investigation on EU pork Russian pork companies have moved quickly to establish themselves as alternative suppliers this chain of events highlights the interconnected nature of global trade and the potential for unintended consequences when implementing protectionist measures the eu's decision to impose tariffs on Chinese electric vehicles intended to protect its domestic industry has instead led to threats to other key export sectors such as pork Dairy and Brandy China's recent decision to implement export controls on antimony and related items marks a significant development in the ongoing trade tensions between China and the United States this move announced by China's Ministry of Commerce mofcom and the general administration of Customs is set 32:04 to take effect from September 15th 2024 antimon a critical non-renewable resource plays a crucial role in various Industries including Electronics solar photovoltaic components telecommunications petrochemicals Vehicles Aerospace and notably military applications approximately 50% of global antimony usage is in flame retardants while another 20% is used in photovoltaic glass for solar cells it's also essential in lead acid batteries which are widely used in vehicles and backup Power Systems the timing of China's announcement coming in the wake of us tariffs on Chinese electric vehicles suggests that this move may be at least in part a response to those tariffs while China has not explicitly linked the antimony export controls to the EV tariffs the sequence of events and the Strategic nature of the resource 33:00 involved point to a potential connection the ongoing situation raises questions about the effectiveness of using tariffs as a tool for protecting domestic Industries in a globalized economy while the eu's tariffs May provide some protection for its electric vehicle manufacturers in the short term the retaliatory measures by China could potentially cause more harm to other sectors of the EU economy think EVS are just about zero emissions think again they're now the spark igniting a billion dooll battle between East and West how China's about to hit Europe where it hurts and why the EU never saw it coming into the details how bad can a trade dispute between Brussels and Beijing get well uh we saw during the Trump Administration that actually a trade dispute can get completely out of hand but frankly we are not really there yet well basically what we are seeing is that the European Union has announced that is investigating Chinese uh Chinese Imports of electrical Vehicles whereas China has basically 34:04 responded in kind and saying that they are investigating Brandy uh so this is really just a warning shot and uh where both sides are looking at each other's position and see and who's going to Flinch first the global economic landscape is witnessing a seismic shift as China and the European Union engage in an escalating trade dispute that threatens to reshape their long standing economic relationship in a move that has sent shock waves through the automotive industry the EU has imposed Hefty tariffs on Chinese electric vehicles sparking fears of potential retaliation from Beijing that could hit Europe where it hurts most the eu's decision to slap tariffs of up to 38.1% on Chinese EVS marks a significant turning point in the Block's approach to China's rapidly growing Automotive sector this move is aimed at curbing the flood of cheaper Chinese electric vehicles into the European market which has been posing a serious threat to European automakers the tariffs are set 35:05 to affect major Chinese players like G Le byd and saic with duties ranging from 17.4% to 38.1% depending on the manufacturer EU officials argue that these tariffs are necessary to level the playing field citing concerns over unfair subsidies provided by the Chinese government to its EV manufacturers these subsidies they claim have allowed Chinese companies to offer their vehicles at substantially lower prices in Europe potentially undermining the competitiveness of European made EVS you argued um you could argue I should say that maybe these sides these two sides actually need each other more than ever given the shape of their economies right now if we look at Germany for example um you know huge companies with relian is on China the Chinese economy really struggling in this past year to recover completely from covid um what is it that's driving them apart exactly if you had to sum it 36:02 up well you're absolutely right uh they are quite interdependent and if you look at the European economy since the EU and Germany doesn't have much of its own growth it needs to look at large overseas markets uh that can absorb a lot of European export what a lot of people don't actually know is that actually Europe is more export dependent than China so in other words if you think China export too much Europe is actually even exporting even far more and now the Chinese economy has been relatively stagnant uh since the the pandemic yet there are no other major Market openings or major pockets of growth out there for a large economy like the European Union that needs roughly an economy of the same size in order to basically make a dent in its GDP and conversely if you look at the Chinese economy it still relies on Imports of uh high-tech uh not least in aviation and Advanced Materials and such uh which goes into upgrading its economy and also if you look at services for example like in banking and other Professional Services that China is extremely dependent on Europe especially given the trade war that has been going on between the US and China

SITE COUNT