Hungarian car chief calls for cooperation with China - and an end to tariffs

The European Union decision to impose tariffs on Chinese electric vehicles (EVs) has sparked impassioned debate among industry insiders, including Gabor Gablini, president of the Hungarian Auto Dealers Association. 

Interviewed by CGTN, Gablini expressed skepticism about the long-term effectiveness of the tariffs, calling them a "quick approach" that fails to address the real issues facing the European automotive industry.

"I think it was a hurried approach, but not the best," Gablini said. He explained that while tariffs might offer short-term relief, they are not a sustainable solution. 

"In electric vehicle technology, the Asians, the Chinese are ahead of Europe," he added, emphasizing the need for cooperation and negotiation instead of imposing trade barriers.

The EU decision to implement tariffs for five years has revealed divisions within the bloc. Hungary, along with four other countries, voted against the measure, while 12 countries abstained from voting. 

Gablini believes this reflects the uncertainty surrounding the effectiveness of such tariffs. "I don't believe it will work in the long term," he said.

One of the main challenges for Europe, according to Gablini, is the loss of competitiveness in the electric vehicle sector. He pointed out that Chinese companies like BYD are making significant inroads into the European market, with plans to produce electric vehicles in Hungary. 

"It's not a shame to learn from the best," Gablini noted, suggesting that Europe could benefit from adopting some of the innovations and efficiencies of Chinese manufacturers. "We need to create a new position for ourselves."

Gablini also stressed the importance of investment and innovation to regain competitiveness. He called on European leaders to encourage Chinese companies to invest in Europe rather than simply importing vehicles from China. 

"If we want to protect jobs, we need to invite the Chinese to invest here in Europe," he said, adding that such investments could help develop the European automotive industry in the long run.

While acknowledging that the tariffs might buy Europe some time, Gablini remains hopeful that a more collaborative approach could emerge. "We need room for negotiation," he said. "The Chinese know they need to negotiate because they are not interested in fighting against Europe."

Gablini concluded by urging Europe to rethink its strategy, focusing on research and development to foster innovation. "If we create only tariffs, it will destroy everything in the long term," he warned.

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