China’s Premier Li Qiang pushed back against accusations from the U.S. and EU at a World Economic Forum meeting in Dalian, asserting that Chinese firms do not benefit from unfair subsidies and that their green technologies enrich the global supply. Li’s comments come amidst escalating tensions, with the U.S. imposing steep tariff hikes on Chinese imports, including EV batteries, and technical talks between China and the EU on tariffs for Chinese-made electric vehicles.
Li emphasized that China’s production of advanced electric vehicles, lithium-ion batteries, and photovoltaic products meets both domestic and global demand, rooted in the country’s unique comparative advantages. China asserts that its investments in green technologies are justified and that the West’s actions are unwarranted.
However, Brussels’ trade policy has become more protective over concerns about China’s production-focused development model leading to an influx of cheap goods. Beijing has warned Brussels about opening a new front in the trade war and retaliated with an anti-dumping probe into EU pork imports following the EU’s tariff decision.
Despite initial concerns, experts acknowledge China’s progress in producing low-cost electric vehicles and see it as a lesson for other regions to improve competitiveness. There is a recognition that Chinese cars may eventually enter North American markets.
Source: Reuters