China-Europe automotive sector cooperation has made new progress recently,with Chery's joint venture plant in Spain commencing production of its first model in November.
Industry analysts told Global Times on Sunday that auto companies from Europe and China are committed to seeking shared growth and win-win development,despite policy uncertainties from the European Commission,the political arm of the EU.
Chery,which is headquartered in East China's Anhui Province,and Spain's EV Motors marked the launch of their joint venture's first product-the EBRO S700,on November 23,in Barcelona,according to a statement the Chinese automaker sent to the Global Times.
Speaking at the ceremony,Spanish Minister of Industry and Tourism Jordi Hereu hailed the collaboration as exemplary for future joint ventures between Chinese and Spanish companies,while expressing hope for deeper cooperation like EBRO and Chery across Spain,Xinhua News Agency reported.
EV Motors,the parent company of Spanish brand EBRO,and Chery set up a joint venture in Barcelona in April this year,which is expected to create 1,250 jobs and produce 150,000 cars in 2029,the Xinhua report said.
Broad cooperation
Chinese new-energy vehicle(NEV)manufacturers have made significant progresses in the European market in the past years,despite recent setbacks such as the EU's imposition of high tariffs,Zhang Xiang,secretary general of the International Intelligent Vehicle Engineering Association,told the Global Times on Sunday.
Besides Chery,another major Chinese NEV maker BYD announced plans in 2023 to establish a new manufacturing and production center in Szeged,Hungary.Local media reported that the factory is expected to start production in 2025.
And,the Netherlands-based Stellantis also founded a joint venture with Chinese Leapmotor.The joint venture holds exclusive rights to export,sell,and manufacture Leapmotor cars outside the Greater China region,Leapmotor told the Global Times in a statement.
In addition to automotive production,China-Europe cooperation has extended into critical segments along the electric vehicle(EV)supply chain,such as lithium battery production.
The world's top electric battery maker CATL,which is headquartered in East China's Fujian Province,has built two factories in Europe.After its first factory in Germany started operations in 2023,another CATL plant in Debrecen,Hungary,is expected to begin production in 2025,local media outlet Hungary Today reported.
NIO and XPeng,two other prominent EV makers of China,have entered the European market too.They are selling cars,setting up research and development centers,and funding charging poles and after-sales service networks,helping generate numerous local job opportunities in Europe.
The China-Europe automotive industries are complementary in nature.European automakers excel in technologies for making internal combustion vehicles,while Chinese companies lead in developing advanced EV-related technologies.By combining their strengths,Chinese and European companies could accelerate EV development and rake in great dividends in the global shift toward new energy solutions,Zhang said.
'Fair competition'
Yet,the road to cooperation isn't always smooth.On October 30,the EU started to levy tariffs of up to 45.3 percent on EVs imported from China.In response,China's Ministry of Commerce(MOFCOM)criticized the EU's anti-subsidy investigation on Chinese EVs,calling it unreasonable and non-compliant.The ministry noted that the European bloc is using the guise of"fair competition"to pursue protectionist practices.
Following the implementation of the EU's protective tariffs,China and the EU have engaged in negotiations to explore alternatives to resolve their dispute.Recently,a senior EU official disclosed to media that the two sides are close to reaching an agreement on the tariffs,which may involve setting minimum selling prices of Chinese EVs in the European market.A MOFCOM spokesperson confirmed that some progress has been made,emphasizing the discussions are still ongoing.
While there are some misunderstandings in Europe's trade policy towards China,both sides should continue to work towards finding a solution to the tariff issue.Chery's new plant in Spain is a positive example of the progress being made in bilateral cooperation,Pan Deng,an associate professor at China University of Political Science and Law,told the Global Times on Sunday.
In recent years,Spain has exhibited increased independence in its policies regarding EVs,renewable energy,and agriculture,making pragmatic policies based on its own interests and its relationship with China.This shift not only aligns with Spain's national interests but also offers valuable insights for other EU countries,Pan said.
Spain's actions could"encourage the EU as a whole to adopt a more rational approach"in its trade and economic interactions with China,the expert said.
Many Chinese and European businesses are committed to seeking closer cooperation and win-win results,as multiple major European automakers have expressed firm opposition to the EU's decision to impose tariffs on Chinese EVs.For instance,Mercedes Benz has collaborated with CATL to invest in the battery plant in Hungary.
In a recent interview with Xinhua News Agency,Ola Kaellenius,chairman of the board of management of Mercedes Benz,said:"We need to be successful in China to be even more successful in the world."
Kaellenius praised the progress that many Chinese automakers and battery suppliers are establishing factories in Europe.Levying tariffs"is the wrong way to go,because we believe it stifles growth,it stifles innovation,and it does not create a win-win situation for everybody,"Kaellenius said.
（Picture: Veer）
