Minimum prices to fight unfair competition
According to Bernd Lange, president of the European Union Trade Committee, the key to this agreement lies in the establishment of floor prices for electric cars imported from China. “ We are close to an agreement: China could commit to offering its electric vehicles in Europe at minimum prices. This would eliminate the problem of unfair competition caused by unfair subsidies “, said Bernd Lange.
Initially, the European Union had mentioned minimum prices of between €35,000 and €40,000, but current discussions suggest an amount closer to €30,000, a proposal made in October by the Chinese government. This approach would bring models like the MG4 Electric closer to the prices of their European competitors, such as the Citroën ë-C4, the Renault Mégane E-Tech or the Volkswagen ID.3.
However, this measure will only concern cars manufactured in China. Vehicles assembled locally in Europe, by groups like BYD or Chery, will not be subject to these restrictions. This will allow them to compete on equal terms with European manufacturers, thus strengthening the attractiveness of Chinese investments on the continent.
A lever to stimulate Chinese investments in Europe
This agreement could indeed have a positive impact on Chinese industrial projects in Europe, in particular by unlocking strategic investments frozen due to the trade dispute. Companies like CATL, which plans to build a battery gigafactory in Zaragoza, could see their projects accelerated, as could BYD in Hungary once the deal is finalized.
Other manufacturers, such as Great Wall Motor and SAIC, have also expressed interest in establishing factories on European soil.
On the other hand, countries like Poland, which recently voted in favor of the new customs tariffs, could suffer. Moreover, Leapmotor has abandoned its production plans in Poland, preferring to move towards Germany or Slovakia. Spain too, which abstained in the vote, could benefit from this posture by attracting more Chinese industrial projects. France could host Huawei’s largest factory, but there is no question of automobiles there at the moment.
