Europe has detected the presence of dumping in the Old Continent following the strong and unexpected arrival of Chinese electric cars. We tell you.
Nowadays there is nothing we talk about other than the strong imposition of Chinese cars on the European market. And, after the rise in the supply of electric cars, China is bringing this type of vehicle to the Old Continent at a much lower cost than the rest of the catalog on the European market.
Many talk about 'dumping', a term that, although it may not seem like it, is very familiar in the field of transportation. But it is also worth highlighting what 'antidumping' is. We are going to explain both terms to you here, in this article.
What is dumping?
This is what is known as unfair competition. In this sense, it is a situation forced by an actor (China) in a specific sector (automotive industry), which it pursues through a series of premeditated actions to end up benefiting (electric cars at a low cost).
In this sense, the ultimate objective of dumping is to manipulate prices with the intention of causing them to drop drastically. Thus, the one that produces this dumping (China) wants to remain the only supplier of a product (electric cars), thus producing a monopoly.
What is antidumping?
Antidumping is nothing more than a defense tool to end a dumping situation. These types of actions allow the authorities to take action on the matter, as well as try to correct this situation of unfair competition.
When it comes to the automotive sector, there are several antidumping laws, especially promoted by the European Union. The normal thing is that the European Commission carries out an investigation, in such a way that it (the Commission) is the one that finally dictates whether it is a situation of dumping or not.
And, taking this into account, it will also be the Commission itself that, if unfair competition is detected, will dictate antidumping laws so that the right to free competition is guaranteed in European countries.
Europe finds presence of dumping in EuropeSusana Solís
The MEP for Ciudadanos and spokesperson for Industry in the European Parliament, Susana Solís, has applauded the customs records imposed by the European Commission on Chinese electric cars, finding evidence of unfair competition within the antidumping investigation that opened last October.
The MEP stated: “This anti-dumping investigation is crucial for the competitiveness of the European market and I am glad that it is beginning to produce results. “Our industry likes to compete, but on equal terms that are not occurring.”
“Thanks to subsidies, China has become the largest producer of electric vehicles, it controls critical materials and also batteries,” denounced Solís, who has submitted a written question to the European Commission on this matter.
Europe, at a disadvantage compared to China
The Community Executive announced last Tuesday that it has sufficient evidence to suggest “that imports of electric vehicles from China are being subsidized.” As a precautionary measure, from now on all imports of Chinese electric vehicles must be registered by EU customs authorities.
It is the first measure within the investigation process initiated by Brussels in October 2023 to clarify whether the Asian giant is engaging in unfair competition: if the EU cannot subsidize the industry, European manufacturers play under inferior conditions.
The MEP, who has been a negotiator of the legislative package relating to electric vehicles and emissions reduction, explained that the intention of this registration is “to discourage Chinese manufacturers from registering as many cars as possible in Europe before they are publish the conclusion on tariffs, scheduled for July.”
Solís' response to Chinese manufacturers
Regarding China's response, Susana Solís has stated: “China has expressed its discontent, but quite cynically added that given the growing demand for electric vehicles in Europe, Chinese automotive companies have demonstrated their commitment to boosting our market.” .
The MEP is going to write a letter to the European Commission to request more information regarding the precautionary measures that will be taken in this regard. The measures taken should ensure that the European automotive industry can compete fairly within and outside the EU.
“The European Commission already has evidence of unfair Chinese competition. I expect more measures and a lot of firmness. Our industry likes to compete, but on equal terms,” defended the liberal spokesperson for Industry.