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Thursday, December 26, 2024

China punished Poland for tariffs. Germany may benefit

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The German daily “Die Welt” extensively describes on its website on Monday (11/11/2024) the Reuters report, according to which the Chinese authorities have decided to punish Warsaw for supporting European tariffs on Chinese electric cars.

Reuters reported that Beijing intervened in the Stellantis automotive concern, which owns the Opel brand. As a consequence, it will not be produced in the Tychy plant electric car B10 from the Chinese brand Leapmotor, which cooperates with Stellantis in Europe.

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As we read on the website of “Die Welt”, the small SUV (B10) is already available on the market in China, and in 2025 it will also be sold in Europe. “Tychy in Silesia, where the smaller T03 model of this brand is already produced, has been indicated as a production plant in Europe.” But now the order has been withdrawn.

A purely political decision

Reuters adds, citing its sources, that the decision to take away Tychy's production is purely political, and Beijing wants to punish Poland for supporting EU tariffs.

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The fact that the production of the B10 model is to be carried out in another EU country – probably Germany or Slovakia – may prove that this is a punishment for Poland, and not the entire EU. These countries did not support tariffs on Chinese electric cars. “This case shows the pressure the Chinese government is putting on Europe and its car manufacturers (…) Retaliatory actions by China are a blow to Polish the Stellantis plant, which may threaten jobs,” we read on the website of “Die Welt”.

Slovakia or Germany

The newspaper reminds that Stellantis has two factories in Germany: in Kaiserslautern it produces components for the Opel brands, CitroenPeugeot, Fiat and Jeep. The second factory is Opel's main plant in Ruesselsheim, which, in addition to combustion engines, also produces electric cars.

The competition for German plants is the factory in Trnava, Slovakia. “Die Welt” notes that prime minister Slovakia's Robert Fico recently paid a several-day state visit to China, where he was to clearly emphasize that his country opposed the EU's punitive tariffs. Instead, he sought to expand cooperation with China. Many cars produced in his country are already exported to China. All this means that Slovakia may have a better chance of taking over B10 production.

“Die Welt” estimates that Beijing has punished Poland very severely, and the newspaper even writes about a retaliation from China.

The article comes from the Deutsche Welle website



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