The Hungarian government is opposing Europe’s regulation of Chinese electric vehicles.
Just hours after the European Commission announced on the 12th that it would impose tariffs on imported Chinese electric vehicles, Hungary declared it does not agree with Europe’s regulation of Chinese electric vehicle manufacturers.
In a press release, the Ministry of Foreign Affairs stated, “The EU should support the European electric car industry instead of imposing punitive tariffs.” It added, “We do not agree with Europe regulating Chinese electric vehicle manufacturers with punitive tariffs,” emphasizing that “protectionism is not the solution.”
Hungary, under the right-wing leadership of Prime Minister Viktor Orban, has emerged as a significant trade and investment partner with China. This starkly contrasts with other European Union countries trying to reduce their dependence on the Chinese economy.
Over the past few years, Hungary has invested more than $1 billion to support new battery factories in their country, including the Chinese battery giant CATL.
Hungary also secured an investment in Europe’s first Chinese car factory announced by China’s BYD last year. The country provided cash for job creation, tax reductions, and regulatory easing in targeted areas to attract foreign investment.
The EU Executive Commission previously announced it would impose an additional tariff of up to 38.1% on imported Chinese electric cars from July.
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