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France** recently introduced a new rule that excludes Chinese-made electric vehicles from the scope of car purchase subsidies. This decision not only has an impact on the bilateral ** between China and France, but also weakens the confidence of Chinese companies to invest in France. Lu Shaye, the Chinese ambassador to France, issued a strong warning on this matter, saying that if there is a real war, the French electric vehicle industry will be difficult to resist. Previously, France** encouraged the EU to conduct so-called "countervailing investigations" on Chinese electric vehicles to protect its electric vehicle industry from China-related products. According to a report by Europe**, if the EU determines that Chinese electric vehicles violate its relevant regulations, it will impose a penalty tariff of more than 25%.
However, this practice has sparked opposition from other EU countries. The United States has clearly warned the European Union that this kind of behavior may trigger a war between China and Europe and cause European car companies to suffer heavy losses. Although France wants to protect its electric vehicle industry and push the EU to launch an investigation into China's electric vehicles, the rest of Europe does not support it, believing that it will undermine China-EU cooperation. In fact, China and the United States are leading the way in the global EV industry, and France is ranked relatively low even within Europe. Therefore, Ambassador Lu Shaye's tough statement is not unexpected. If France insists on waging a tariff war with China in the field of electric vehicles, France's own electric vehicle industry will most likely suffer significant losses. In addition, Europe as a whole is difficult to match with China.
Although France's automotive manufacturing industry is relatively developed in Europe, France is far inferior to Germany when it comes to electric vehicles. France's electric vehicle industry is just getting started, and there is a big gap between China's electric vehicles. China and the U.S. currently dominate the global EV market, while other European countries such as Germany, Japan and South Korea are on the periphery and waiting to see what happens. Therefore, Ambassador Lu Shaye's confidence comes from China's leading position in the electric vehicle industry. He is not without reason that once the Sino-European war breaks out, the French electric vehicle industry will be difficult to compete with China and will inevitably suffer a heavy blow.
Regarding the introduction of a bill to protect the electric vehicle industry in France, Ambassador Lu Shaye's warning is not groundless. Although the French electric vehicle industry is in a certain position in Europe, it is difficult to compete with China due to its relatively backward technology and industrial accumulation. Once the war between China and Europe breaks out, France will be the biggest loser and may lose all the games. This was not only an economic setback for France, but also a full-blown shock. In the field of electric vehicles, France cannot compete with a global leader like China, and its fledgling electric vehicle industry is in danger of being strangled in the cradle. From this point of view, France's protectionist approach is only a political gesture, with political tendencies and interests.
It is worth noting that within the EU there is resistance to some of the European Commission's approaches. The dependence of EU countries on the Chinese market and the economic and trade cooperation with China cannot be ignored. The economic complementarity between China and the EU has made cooperation more important. Therefore, while some EU member states are politically at odds with China, they do not want the political dispute to have a negative impact on the bilateral side. In fact, the economic and industrial impact of some of the European Commission's political programs has been catastrophic. The economic and industrial development of the eurozone countries requires the Chinese market to digest their products and obtain goods and raw materials from China. If China-EU economic and trade cooperation is disrupted, it will have a significant impact on the economy and foreign trade of France and other eurozone countries.
For France, although it has friction with China on some political issues, there is a clear understanding of the importance of economic cooperation. As a result, France ranks high on the list of boycotts of the "de-risking" program against China. This shows that France's declaration of war is more of a bluff. Macron's introduction of a bill to protect his country's electric vehicle industry does not mean that France has the strength to fight a war with China. Given Macron's political predicament at home, he needs to maintain his political position by currying favor with relevant domestic industries and gaining their support. The political significance of this move far outweighs its economic significance.
France's protectionist approach to the EV industry has provoked a strong reaction from China. The statement of the Chinese ambassador to France, Lu Shaye, shows the self-confidence and strength of China's electric vehicle industry. Although France's electric vehicle industry has a certain position in Europe, it is less competitive than the leading positions of China and the United States. Once a war breaks out between China and Europe, France will become the biggest loser, and the whole of Europe will not be China's opponent. In addition, some of the European Commission's political plans have been resisted by other European countries, and EU member states want to maintain economic and trade cooperation with China. Despite some political friction, economic cooperation is vital for both sides. As a result, France's protectionist approach may be more of a political gesture with limited practical economic implications. Ultimately, a war between China and France could have serious consequences, and the French EV industry may not be able to compete with China.
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