Brussels is concerned about how China is making inroads into Europe. This was stated by the President of the European Commission, Ursula Von der Leyen, this Wednesday during the plenary session of the European Parliament. Among other things, he announced that Brussels would open an investigation into aid for the production of Chinese electric vehicles. They believe that China is engaging in “unfair competition” and distorting the European market.
In recent years, Spain has become the gateway for Chinese industry in Europe. Our country has the perfect characteristics to be China’s “guinea pig” in Europe. The Spaniards’ way suits them like a glove. We like good, beautiful and cheap. Often because we have no other choice. Spain is a country where most incomes are in the low to middle range. That’s why we’re interested in inexpensive products that work. And China knows it. An example of this is that in August the best-selling vehicle in our country was: the MG ZS. A 4.3 meter SUV that sold 10,298 units. It is Chinese and its development has been meteoric, because in 2021 this car was not even sold in Spain. And now… it’s peak sales.
Why doesn’t this happen in other European countries? Because Europe is very big and very different. It is “divided” into north and south. And the Chinese have a very difficult time in the Nordic countries. Firstly, because it has more purchasing power. And that leads them to desire more luxurious brands. Their wallet allows them to think differently. And this is where Spain comes into play. Because Europe doesn’t just consist of the north. And the Chinese know that if a product is already there and is selling well, they have to use this route to reach other countries that are more similar to us, such as Italy, Greece, Portugal or even Poland, as was the case with mobile phones. In Spain, brands like Xiaomi and Huawei have been quite successful. Because? Because they work and are practical.
Why is the European Union worried? In many cases, the fact that Chinese products are so cheap is because Chinese companies based in a communist country receive government aid. That doesn’t happen in Europe. And Brussels says this is “unfair competition” with our companies and because this desire for Chinese products and materials makes us heavily dependent on them. Last year, China was the country from which our country imported the most products.