As suggested by the remarks of Chancellor Olaf Scholz, the German market shows a welcoming attitude towards Chinese automobiles. In this blog, I would like to consider the background and impact of this stance.
The Importance of Open and Fair Competition
As Chancellor Scholz emphasizes, open and fair competition with Chinese automobiles is essential for the European market. This attitude is similar to when Japanese and Korean cars entered the European market in the past. At that time, there were concerns that these cars would dominate the market, but in reality, the variety of choices increased, and competition was invigorated. This allowed consumers to obtain better products and spurred technological innovation across the automotive industry.
Anti-Dumping Measures and Intellectual Property Protection
Chancellor Scholz has expressed a strict stance against dumping practices and intellectual property violations. This likely addresses concerns that the low prices of Chinese products could distort the market. The European Union (EU) has shown a willingness to take appropriate measures as necessary to maintain a fair competitive environment.
The Stance of the German Association of the Automotive Industry (VDA)
The German Association of the Automotive Industry (VDA) opposes additional tariffs on Chinese electric vehicles (EVs). They argue that such measures could trigger a trade war, threaten German jobs, and jeopardize the EU’s goals for EV adoption and digital transformation. This reflects the complex situation faced by the German automotive industry.
Conclusion
Chancellor Scholz’s statement that the German market welcomes Chinese automobiles indicates a commitment to open and fair competition. However, concerns about dumping practices and intellectual property violations remain. Considering the stance of the German Association of the Automotive Industry, the impact of the entry of Chinese automobiles is not straightforward.
In the future, it will be necessary to closely monitor how the presence of Chinese automobiles in the European market changes and what impact this will have on consumers and the industry as a whole. As open competition is promoted, how each country responds and maintains its competitiveness will be key.
