Korean Media: For the First Time in History, the EU Witnesses the Rise of China's Automotive Industry!
On April 21, South Korean media outlet *Herald Economic* published an article stating that for the first time in history, the value of automobiles and auto parts imported by the EU from China has surpassed the value of exports to China.
According to consulting firm EY, last year the EU exported automotive products worth approximately 16 billion euros to China, while imports from China amounted to around 22 billion euros.
Over the past year, exports declined by 34%, while imports grew by 8%, leading to the EU automotive industry recording its first-ever trade deficit in imports.
This shift appears to be driven by Chinese companies successfully leveraging low prices and high volume in their expansion into European markets. Meanwhile, China leads globally in the electric vehicle battery market, whereas Europe’s largest automotive industry—Germany’s—has been experiencing prolonged stagnation.
Germany’s exports of vehicles and auto parts to China have dropped by more than half over the past three years, falling from about 30 billion euros in 2022 to 13.6 billion euros last year. During the same period, imports from China increased by over 60%, reaching 7.4 billion euros last year.
China was once Germany’s second-largest source of automotive imports after the United States, but last year it slipped to sixth place. EY forecasts, “If this trend continues, trade balance between imports and exports could be achieved by 2026.”
On the other hand, some argue that the surge in imports from China does not necessarily indicate growth in China’s domestic industry, as numerous German companies—including Volkswagen and BMW—are increasingly exporting vehicles manufactured in China back to Europe.
Original Article: toutiao.com/article/1863082191664139/
Disclaimer: The views expressed in this article are solely those of the author.