IM-Herman_2024_0215.pub

IM-Herman_2024_0215.pub Intelligence Memos From: Lawrence Herman To: Canadian Trade Watchers Date: February 15, 2024 Re: The Coming War Over Chinese Electric Vehicles Standing back and looking at today’s global trading picture, one can see that it’s not pretty – destabilized by the wars in Ukraine and Gaza, by the unsettled multilateral situation at the World Trade Organization and by innumerable. [...] In October, the European Commission said: “Based on the investigation’s findings, the commission will establish whether it is in the EU’s interest to remedy the effects of the unfair trade practices found by imposing anti-subsidy duties on imports of battery electric vehicles from China.” The EU investigation is indicative of Chinese imports worrying Western countries and the West’s willingness to. [...] Counterproductive as protectionism may be, the EU case could well signal the start of actions by other Western countries, not only in the automotive sector but in other businesses in the net-zero emissions space where Chinese subsidies are similarly massive. [...] Here in North America, the shape of the battle will be determined by what the United States does. [...] The Chinese EV issue is complicated by concerns voiced by Canada’s auto-parts industry association “about a string of investments by Chinese firms in Mexico’s auto industry, moves it argues are designed to skirt rules in the United States-Mexico-Canada Agreement,” The Globe and Mail reported in November.