The Spanish Minister of Economy stated that after the EU officials announced on July 4 (Thursday) that they will start imposing temporary anti-subsidy tariffs of up to 37.6% on Chinese electric cars, the EU must stand firm on its position in negotiations on this issue.
The Nikkei reported on Friday (July 5) that Carlos Cuerpo, the Spanish Minister of Economy, Trade, and Business, said in an interview on Thursday: “The EU is flourishing in rules-based international trade. But we should not be naive, we must recognize the fact that in some cases, our companies are not competing in a fair environment.”
The EU confirmed on Thursday that they did not reach a consensus with China on the issue of importing Chinese electric cars, and the EU will begin imposing a temporary anti-subsidy tariff of up to 37.6% on Chinese electric cars starting Friday. Currently, Chinese electric car importers will temporarily pay tariffs to customs, only imposing tariffs if no alternative agreement is reached with the Chinese government before a final vote on the issue by the EU later this year.
The EU accuses China of providing “unfair subsidies” to domestic electric car manufacturers, putting European manufacturers at a disadvantage in the domestic market.
Cuerpo stated, “We need to find a balance between playing by the rules and protecting European industries.”
As the second-largest electric car exporter in Europe, Spain is one of the strongest supporters in the EU in combating the import of Chinese electric cars. To protect the domestic electric car industry, Cuerpo mentioned that in 2021, the Spanish government committed to providing 3.1 billion euros (approximately 3.4 billion US dollars) in public investment to the industry, with two-thirds of the investment already fulfilled.
Furthermore, Spain is also eager to attract foreign electric car investments, especially from China. According to reports, Chinese automaker Chery has signed an agreement with Spanish manufacturer Ebro-EV Motors to establish a joint venture in Barcelona for the development of electric cars, with a total investment of 400 million euros. The joint venture, majority-owned by Ebro-EV Motors, will be located in the former Nissan plant closed in 2021 in Barcelona.
Additionally, Envision Group, a Shanghai-based new energy technology company, is collaborating with the Spanish government to build a super electric vehicle battery plant in southern Spain.
Cuerpo mentioned that such joint ventures are “a good balanced solution” to address the challenges the EU faces with Chinese electric cars.
However, China’s initiation of an anti-dumping investigation into EU pork on June 17 could disrupt the balance in Spain-China relations. This investigation is seen as a retaliation against EU restrictions on Chinese electric cars, posing a particular threat to Spain, as it is the largest pork exporter in the EU. According to data from Interporc, the Spanish swine industry association, in 2023, Spain’s pork production accounted for 9.5% of the domestic production total, exporting 2.75 million tons of pork products, with 20.4% going to China, including frozen offal and by-products, frozen meat, and chilled fresh meat.
Cuerpo emphasized that pork is a “key industry” in Spain, stating, “We will protect (Spain’s pork producers) because we believe there’s no reason to suspect any illegal assistance or subsidy measures that could affect other companies.”
According to the International Monetary Fund’s forecast, Spain’s real GDP is expected to grow by 2.4% in 2024, outperforming major economies in the EU.