This is quite a pickle! The European Union's recent move has really ticked off Chinese automakers. What's the situation? The European Commission claims that Chinese electric vehicles receive government subsidies, making their prices too low, and they want to impose anti-subsidy duties on them. As a result, Chinese automakers have directly thrown in the towel and halted all their investment plans in Europe.

The EU's "little abacus" is clicking away loudly.

To be honest, this move by the EU is quite cunning. They are using the banner of "fair competition," but in reality, they want to weaken the competitiveness of Chinese electric vehicles in the European market. Chinese electric vehicles are selling well in Europe, and many Europeans think they offer good value for money. The EU can't stand it and wants to throw a wrench in the works for Chinese automakers.

European Commission President Ursula von der Leyen even said that "global markets are flooded with cheap Chinese electric cars." It sounds as if the success of Chinese automakers is somehow a mistake. They've made technological progress and their products are competitive, but instead of learning from them, you're thinking about suppressing them. What kind of logic is that?

However, the EU's move is not entirely without merit. After all, the Chinese government has indeed provided a lot of subsidies for new energy vehicles to help the industry develop rapidly. But who hasn't given some subsidies? Doesn't the U.S. also offer Tesla various preferential policies? At the end of the day, it's a matter of different positions, where your stance determines your thinking.

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The Chinese automakers' counterattack is swift and decisive.

The Chinese side is not to be trifled with, and their counterattack is both fast and fierce. SVOLT Energy Technology directly announced the suspension of two battery factory projects in Germany, which are investments worth over 30 billion! Not only SVOLT, but other Chinese automakers have also pressed the pause button, halting their expansion plans in Europe.

This move can be considered quite assertive. You want to suppress us? Alright, then we won't come at all and see what you can come up with on your own. Europe is probably a bit bewildered now, as they were hoping that Chinese investment would drive employment and promote economic development. Now, it's like trying to catch water in a bamboo basket, all in vain.

However, this "tit-for-tat" approach, while satisfying in the short term, is not beneficial for anyone in the long run. After all, in today's globalized world, we are interdependent, and a hard confrontation will only lead to mutual harm. It is hoped that both sides can calm down and have a good talk, without making the situation too rigid.

Germany and Italy are caught in a dilemma.In the midst of this turmoil, Germany and Italy can be said to be the most embarrassed. These two countries are the big players in the European automotive industry, but now they are a bit out of step in the field of new energy vehicles. On one hand, they want to protect their own industries, and on the other hand, they cannot do without Chinese investment and technology.

Germany is even more entangled. As the largest economy in Europe, it wants to protect the interests of its own car companies while not wanting to offend China, a major customer. Look, Volkswagen, BMW, and Mercedes-Benz are all making a fortune in China. Now that the EU has made such a move, the Germans are probably very worried, fearing that China will come over with a hug.

Italy is even more interesting. Not long ago, it invited Chinese car companies to invest and build factories, but then it turned around and voted in favor in the EU's anti-subsidy investigation. This operation has offended China terribly, feeling like a stab in the back. But to be fair, they are also helpless, after all, they are a member of the EU, and they can't openly sing counter-tunes with everyone.

The impact of trade frictions on the new energy industry

To be honest, this trade friction is not a good thing for the development of the global new energy industry. Originally, everyone worked together to develop clean energy and contribute to addressing climate change, but now, for their own selfishness, it has become chaotic.

Data shows that last year, China's new energy vehicle exports reached 679,000 units, a year-on-year increase of 1.2 times. This growth rate is indeed quite alarming, no wonder the EU can't sit still. But the question is, by suppressing Chinese car companies, can you ensure the development of your own industry? Not necessarily.

The new energy vehicle industry chain is global, with you in me and me in you. For example, in batteries, China is a major supplier, but many raw materials still need to be imported from abroad. With such a move, the entire industry chain will be affected. In the end, consumers may suffer, after all, with fewer choices, prices will naturally rise.

How should this matter be handled?

To be honest, this matter is quite complicated, and there is no simple right or wrong. The EU's desire to protect its own industries is understandable, but using this method is a bit unscrupulous. The reaction of Chinese car companies is also understandable, but completely stopping investment is not a long-term solution.

I think both sides still need to sit down and talk. You slap me, I kick you, and no one will be better off if this continues. Instead of this, it's better to think about how to complement each other's strengths and jointly expand the cake. After all, the development of new energy vehicles is the trend of the times, and no one can run away.That being said, this incident has served as a reminder for us. In business, it's essential to diversify our strategies and not put all our eggs in one basket. Chinese automakers have encountered obstacles in Europe this time, and they might place greater emphasis on other markets in the future, such as Southeast Asia and the Middle East. This could, in turn, promote the diversified development of the global new energy vehicle market.

In summary, the outcome of this matter depends on how things unfold going forward. It's hoped that both sides can let go of their prejudices, engage in more communication and cooperation, and not harm their relationship for the sake of short-term gains. After all, when it comes to addressing the major issue of climate change, we are all in the same boat, and unity is the key!