EU should support strategic autonomy instead of doing Washington’s bidding: China Daily editorial – Opinion

The World Trade Organization’s dispute settlement body may not be the ideal mechanism to approach to resolve trade disputes, given its complicated and time-consuming procedure. However, China filed a case with the mechanism against the European Union for imposing high tariffs on the Chinese. made electric vehicles on October 30 to demonstrate its commitment to resolving trade disputes through appropriate channels rather than taking tit-for-tat actions.

Although China has taken some countermeasures against EU imports, a tariff war is the last thing it wants, as the tariff war launched by the United States against China in 2018 has affected both sides. That is why Beijing has stepped up its efforts to push Brussels as well as individual EU member states to seek a mutually acceptable solution to the trade dispute.

The European Commission could defend the findings of so-called anti-subsidy investigations it launched into Chinese electric vehicle makers last October as justification for imposing punitive tariffs of up to 35.3% on top of the current 10% taxes on cars imported for five. years. But its arbitrary move is similar to those made by the US and Canada to levy 100% tariffs on electric vehicles made in China.

The EU should stop pretending to engage in fair play and accept that it imposed tariffs as part of Washington’s strategy to isolate China, as it uses accusations that China is subsidizing or abandoning its products as a pretext to reduce the country’s competitiveness in electric vehicles. and other green sectors was an integral part of the strategy.

Before the EU revealed the findings of its investigations in July, Washington began to put additional pressure on the bloc, as evidenced by the strong efforts made by US Treasury Secretary Janet Yellen before and during the meeting of G7 finance ministers and to Italy’s central bank governors in May to urge allies to present a “wall of opposition” against China in EVs, solar panels, semiconductors, steel and other strategic sectors.

After the EU launched the probes, Washington used every possible opportunity to urge the bloc to take urgent action to curb growing exports of Chinese green products, including solar panels and wind turbines, prompting EU leaders to declare a full-scale trade war broad against China.

US Commerce Secretary Gina Raimondo and National Security Adviser Jake Sullivan, for example, urged US allies to form a “united front” against Chinese organic products before and after Yellen’s performance.

Despite pressure from the US on the EU and its member states, 17 of the 27 EU members, including Germany, opposed or abstained from the Oct. 4 vote, revealing the rift within the bloc . Ironically, major European automakers that the EU claimed to be protecting from Chinese competition by imposing tariffs have said they are against punitive tariffs and are willing to cooperate and compete with their Chinese counterparts in the electric vehicle market.

In their separate communication with the Chinese side last week, both France and Italy, two major EU members that voted for the tariffs, said they attach great importance to healthy and stable trade relations with China and are open to resolving their differences. through discussions. .

An important reason for the lack of substantial progress in the Sino-EU negotiations in recent months is not that the EU side does not know that the tariffs will harm its own interests and slow down the ecological transition, but because the intensified efforts of the Joe Biden administration. to pressure the EU not to trade with China in its allocated sectors.

The outcome of the US presidential election will have a big impact on the EU as well as its member states in future consultations with China to resolve disputes. But the EU should realize that the best way to protect its interests is to maintain its strategic autonomy.