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Chinese car imports will help the UK hit its net zero goal but could damage its own car industry.
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Scooped by Graham Watson |
Scoop.it!
Graham Watson's insight:
Trade-offs, trade-offs, trade-offs. Economics is fundamentally about trade-offs, as demonstrated here by the complex issues associated with the import of Chinese electric vehicles.
Should the UK allow the zero-tariff import of Chinese EVs on the grounds that it will help us hit our net zero goals, and the target of not selling any new petrol or diesel cars by 2030? Or should it impose tariffs with an eye on protecting those vehicle makers located in the UK - and almost exclusively foreign-owned - that manufacture electric cars here?
Certainly China has made great strides in this area, not least with the BYD brand, such that China will overtake Japan as the biggest exporter of cars this year, And Chinese cars are often far cheaper than Western alternatives. The issue is that many believe that these low prices are the result of 'unfair competition', largely the result of high levels of state support, and fear that what happened to the solar panel industry could be on the point of happening here - with European firms out-competed by Chinese firms, costing European and British jobs.
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