China warns EU of another trade war
The Chinese Prime Minister warns the West against the risk of another economic war, referring to the tariffs announced by the EU on Chinese-made electric cars. Li Qiang believes that car exports are not intended to monopolize the market.
Chinese Premier Li Qiang, in a speech at the World Economic Forum in Dalian, responded to accusations from the US and the EUthat Chinese companies benefit from unfair subsidies and that they want to flood the West cheap green technologies (i.e. electric cars cheaper than those produced in the USA and EU).
The Chinese Prime Minister made his comments referring to the high import duties on Chinese-made electric cars, which the US authorities have already adopted – the rate is to be 102.5%, and The European Union has set temporary tariffs at the level from 21 to 38.1%. China complies EU authorities that they risk opening a new front in the West’s trade war with Beijing.
Li Qiang pointed outthat the export of Chinese, cheap electric vehicles is a natural process in China’s development, resulting from its comparative advantage (China offers cheap production), and the Chinese economic goal is not flooding European market:
China’s production of advanced electric vehicles, lithium-ion batteries and photovoltaic products, etc. has first satisfied our domestic demand, but also enriched global supply.
Li Qiang, excerpt from a speech at the World Economic Forum
