BMW warns of a possible trade war between the EU and China: what is the reason for the tension

BMW warns of a possible trade war between the EU and China: what is the reason for the tension

BMW predicts a possible trade war between the European Union and China after the introduction of import duties on Chinese electric cars. This was stated by BMW CEO Oliver Zipse, Reuters reports.

Zipse stressed that this could be a serious challenge for the European car industry, as the decision on customs restrictions on Chinese electric cars could become a catalyst for a trade conflict between the EU and China.

During the meeting of the European Commission, the majority of EU member states supported the increase in tariffs to protect European car brands from competition from Chinese companies. However, Zipse stressed the need to avoid aggravating relations due to a potential trade conflict that would not benefit either side.

Germany, along with four other countries, voted against the anti-China tariffs, while ten countries, including France, Italy and Poland, supported the restrictions. Analysts point out that Germany seeks to maintain close cooperation with China, as its automakers are actively developing joint projects in China. At the same time, France and Italy fear that a massive influx of cheap Chinese electric cars could threaten their national automakers.

If tariffs on Chinese electric cars are implemented, Beijing could respond with restrictions on other European goods. China has already launched checks on imports of alcohol, dairy products and pork from the European Union, which could affect industries such as French spirits, Spain’s meat industry and German luxury car exports.