As the EU considers making tariffs on Chinese electric vehicles permanent, Hungary is pushing back, citing concerns about an economic fallout.
A prime example is in Budapest with the construction of two major Chinese EV plants going ahead without delay.
Our correspondent, Pablo Gutierrez reports.
A prime example is in Budapest with the construction of two major Chinese EV plants going ahead without delay.
Our correspondent, Pablo Gutierrez reports.
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00:00The construction of a $7.3 billion battery plant by Chinese company CATL is well underway in Debrecen, Hungary.
00:09This facility will be a critical part of Europe's electric vehicle supply chain.
00:16In Szeged, Hungary, China's top electric car maker BYD plans to start production by 2025
00:23at its 300-acre factory currently under construction.
00:27Experts say these two projects are a key part of Hungary's growing electric vehicle industry.
00:34In 2023, we have seen that the Chinese FDI in the EU, especially in the EV cars, 44% of it came to Hungary.
00:47So it's a huge number, but we cannot forget that in the past 10 years,
00:52the 50%, so the half of the Chinese FDI in the EV cars, went to France, Germany and the UK.
01:01Horvath says the EU is divided over imposing tariffs on Chinese electric vehicles.
01:07The tariffs aim to combat perceived unfair subsidies that could let Chinese EVs undercut European car makers.
01:14Hungary, Slovakia, Germany, Spain and Sweden, however, plan to oppose these tariffs,
01:20citing concerns about potential economic damage to their automotive sectors.
01:25Negotiations between Brussels and Beijing are ongoing with both parties exploring alternatives.
01:32If these talks fail, the EU could impose tariffs of up to 35% for the next five years,
01:39risking a trade war with one of its biggest economic partners.
01:44Some experts say that Hungary has positioned itself competitively in the industry,
01:49even in the face of potential EU tariffs on Chinese electric vehicles.
01:54Well, from the point of view of the Hungarian government, the good news is that even if the European Union
02:00props up some of its anti-subsidy measures against the Chinese car producers,
02:06the cars produced in Hungary will be probably exempt of such measures because they are made in the European Union.
02:13Meanwhile, the EU remains focused on protecting its automotive industry, which employs around 14 million people.
02:20In recent talks, the bloc and Chinese officials said they had a constructive dialogue but reached no agreement.
02:27At the same time, China is investigating EU brandy and pork,
02:31checking if these products are being sold at unfairly low prices that could hurt local producers.
02:38Experts believe the EU still has time to reconsider and avoid a trade conflict with China.
02:44Pablo Gutiérrez, CGTN, Budapest.