'Trade war is the last thing we need' - Polish industry on EU tariffs

After the European Union announced higher tariffs on Chinese electric vehicles sold in Europe, Polish industry figures raised concerns about the potential impact of a trade dispute between China and Europe.

"The last thing we need right now in Europe is a trade war in China," says Tomasz Bebno, who represents Poland's automotive parts industry and is a board member of Europe's Association of Automotive Parts Producers.

Poland is among the world's top 10 exporters of vehicle parts. A trade dispute could lead to a breakdown in supply chains, which could then lead to less demand for Polish manufacturers. 

"If retaliation measures are taken it will probably affect our industry, our supply chains, and we will be hurt," Bebno told CGTN on Monday.

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While parts of Europe's car industry are warning against imposing new additional tariffs of up to 38 percent, the EU says tariffs are necessary because of China's subsidies to its electric vehicle producers, which Brussels deems unfair. 

China denies its competitive edge over electric vehicles is a result of subsidies or unfair practices. Officials claim the development of its clean energy industry is driven by advantages in technology, market and supply chains. 

The European Commission said it would host technical talks with Chinese officials in Brussels this week - news well received by the head of Germany's BDI industry lobby Siegfried Russwurm, who told German radio Deutschlandfunk it was a "good sign" that negotiations were underway to seek to avert a full-blown trade dispute.

Unless the EU and China resolve this dispute, the tariffs will become mandatory starting from July 4.

Most recently, Canada announced it is also considering imposing import tariffs on Chinese-made electric vehicles and will seek the public's opinion about the idea, Deputy Prime Minister Chrystia Freeland said on Monday.

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