00:00Chinese-made electric vehicles face a potential roadblock in Europe.
00:06The EU claims tariffs would protect European car manufacturers from alleged unfair competition.
00:11However, there's disagreement over whether this is the right path for the block.
00:16Protection aims instead of cooperation is not the right way to go.
00:24Starting in July, the EU's additional tariffs on some Chinese electric vehicle brands could reach up to 38.1%.
00:31To avoid these additional duties, analysts say Chinese automakers could follow the lead of BYD,
00:37which is constructing its first European EV manufacturing plant in Hungary.
00:41However, this strategy is not straightforward.
00:44According to the European Customs Regulation, a product is EU-made if the spare parts and components are at least 52% of the total value.
00:59Chinese EV makers currently have an 8% share of the EU market, up from under 1% in 2019, and this could rise to 15% by next year.
01:09Analysts say prices typically 20% less than EU-manufactured models have accelerated their market growth.
01:16These kind of tariffs have never helped in the past to develop those industries that it is here to protect.
01:24So, in my opinion, it's just going to slow down the development of these European firms.
01:32In 2023, China and the EU maintain their status as each other's second largest trading partners,
01:37with a combined trade reaching $783 billion.
01:41Hungary has criticized the EU tariffs on Chinese electric vehicles, advocating for cooperation and free competition.
01:50Instead, on July 1st, Hungary is set to take over the rotating presidency of the European Union,
01:57at which point it plans to introduce a series of measures to promote EV adoption in Europe.
02:05Hungary's plan includes a new EU incentive program to boost electric vehicle adoption among consumers
02:11and new standards to enhance the competitiveness of European EV makers.
02:16During this presidency, maybe we can tell everybody that what is the main focus and main idea of the Hungarian government.
02:23We want connectivity. We want to throw away this kind of sanctioning policy.
02:29Some experts say it's not too late for the EU to step on the brakes and avoid a full trade conflict with China.
02:36Pablo Gutiérrez, CGTN, Budapest.
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