Index – Economy – Has China put Europe in the swing? The global auto industry could change brutally



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“China put us on the swing,” wrote Gábor Várkonyi on his auto blog. According to the auto market expert, China’s entry into electric driving has put a lot of pressure on European policy makers to brutally cut car emissions so that the EU is not left behind. He believes that by doing so, the Chinese have managed to “put all the relevant European players on this track and branch out serious money with them for this purpose.”

In China, big targets have been set for the sale of ‘new energy vehicles’: in 2025, one in four vehicles sold should fall into this category, this includes plug-in hybrids and fuel cell vehicles in addition to electricity, compared to 5% from last year. Done.

Sinologist Gergely Salát disagrees that the Chinese sucked Europe: the Chinese auto industry has steadily developed over decades, virtually from scratch, that China is by far the world’s largest market and automaker. “I don’t think the Chinese are smart enough to do this,” the China researcher told Index. According to

THE CHINESE GO THEIR OWN WAY, BASICALLY CARING FOR THEIR INTERNAL RELATIONSHIPS.

Chinese producers basically produce for the domestic market, in 2019 they exported only 3 percent of their total production. Salad says they obviously want to export to larger markets as well, but this, for example, now seems unlikely for the US And many Chinese cars are also not on European roads. Important markets can only be reached through acquisitions, such as the acquisition of Volvo.

Geelyk will not race through the streets of Budapest, Munich and New York

The Sinologist added. As the prestige of their cars is lower at the moment, they are now mainly reaching third world markets, where this 3 percent of exports is declining, Southeast Asia, Africa and the Middle East.

You don’t have to be afraid of a cheap Chinese car

According to Várkonyi

Do not be afraid of the cheap Chinese car, but that it passes over us because they point to the right, we are looking to the right with our mouths open, while they are even forbidden to look to the left, they are reversing and overtaking by two hundred .

According to him, China, unlike the EU, will not “beautify the carbon balance of electric cars” from 2025: CO2 emissions from electricity production will be converted to be comparable to those of a gasoline car . According to Várkonyi, competition will balance out from there, and China will favor the principle of technological neutrality over the planned economy of the EU, which will vote unilaterally in favor of electricity, which will have catastrophic consequences for our economy.

Both experts agree that China will not neglect electric cars. There are trivial reasons for this: they just don’t want to drown. The level of air pollution in major Chinese cities is already huge.

According to Salat, the Chinese simply cannot afford to produce an additional 100 million gasoline or diesel cars by 2025, and the trend is to produce 20 million cars a year. And 97 percent of that huge amount is sold in China, which is why the Asian country takes support for electric cars very seriously.

It is not about sucking Europeans, but about taking air in ten years.

The China expert highlighted. This is because the Chinese middle class wants to drive a car, which means between 300 and 400 million people, which in itself is more than the entire population of the United States. China also supports this effort, not just in manufacturing, but also in purchasing: In recent years, there have been tax breaks and various subsidies that would have been exhausted this year, but Chinese leadership has extended it for two years.

Such measures and subsidies are also necessary, because if 300 million people start driving SUVs in a short time, the Chinese will drown. “That’s why this is mainly a political issue,” said Gergely Salát, who said China should definitely start something with environmental pollution, a part of which could be electric cars. In larger cities, there are already restrictions through local regulations that only electric bikes, for example, can only be used on the market.

The trade war escalates

Donald Trump is not solely responsible for the escalation of the trade war between the United States and China, as Salat says there is a “structural conflict” between the two countries. There was a country that had dominated the world in almost everything – politically, economically, financially – since the collapse of the Soviet Union in recent decades, and then came China, which began to threaten this monopoly. “The same thing happened 2,500 years ago, when the Spartans attacked Athens, now the United States banned TikTok.” Salat says the same motivation behind both stories: The currently dominant superpower is scared for its rival. He said it could show up in anything, including the auto industry, since before the trade war, the Chinese were in the American auto industry too. They mainly bought parts manufacturing plants, not entire factories, they had more than a hundred such investments in 2017-18. They still exist today, but no further investments have been made since.

(Top image: Charging station of a Chinese electric car-sharing service in Tianjin. Photo: Zhang Peng / Getty Images Hungary)



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