Economy

EU tariffs on Chinese-made electric vehicles stifle free trade

Published

7 months ago

June 17, 2024

The European Commission on June 12 announced additional tariffs of up to 38.1 percent on China-made electric vehicles (EVs) for what it claims to be an action to safeguard industries and jobs inside the European bloc.

Expected to take effect by July, three leading Chinese EV manufacturers BYD, Geely and SAIC face tariffs of 17.4 percent, 20 percent and 38.1 percent, respectively – the Commission says other companies that cooperate with the investigation would face a tariff of 21 percent while 38.1 percent import duties will be apportioned to non-cooperating companies.

With the EU currently charging a 10 percent levy on all car imports, the new tariffs, a blot on the already tense China-EU trade relationship further threatens economic activity, especially for the bloc considered to be one of the most outward-oriented economies and the world’s single-largest market area.

Considering China’s status as the world’s largest automobile market, the EU’s latest move not only exacerbates the plight of the bloc’s EV sector which is grappling with declining domestic demand but also impedes China-EU trade. A recent study by the Kiel Institute for the World Economy shows a 20 percent tariff on Chinese EVs could lead to a whopping $3.8 billion drop in the bloc’s EV imports, representing almost 25 percent of the current value of its trade.

With trade and investment serving as the cornerstone of China-EU relations, cooperation in this area has widened and deepened since China joined the World Trade Organization (WTO) in 2001 – providing enormous benefits. In fact, bilateral trade has supported growth in various industries and fostered job creation across China, Europe and beyond.

Recent data shows China and the EU, which account for over a third of global GDP, are two of the biggest trading partners in the world. With China-EU exports accounting for more than a third of world trade, the two economic powerhouses trade goods over $800 billion annually with each other.

While telecom equipment is China’s leading export to the EU, the bloc’s number one exports to China are cars. For EU enterprises, particularly those in the automobile sector, access to China, the world’s most competitive and largest EV market, is increasingly important – not only because the market is lucrative but also healthy competition fosters innovation and improves product quality.

However, the EU’s latest move, which follows in the footsteps of the recent hefty tariff hikes imposed on Chinese EVs by the U.S., threatens the interest of EU enterprises. While the EU justifies these protectionist measures as an attempt to safeguard industries and jobs inside the bloc, it’s likely the move may yield the desired outcome especially in the short term, but, in the long run, the tariff hikes will ultimately erode EU enterprises’ competitiveness in the EV sector on the global market.

Home to by far the world’s top filer of patent applications – including patents relating to EV charging and battery swapping, China’s rapid growth in recent years coupled with its strong supply chain has not only fostered innovation and high-end manufacturing in the country’s EV sector but also increasingly attracts foreign enterprises including European companies – and some have established industry collaborations in China.

By establishing and strengthening cooperation with domestic players in the Chinese EV sector, European companies are able to spur innovation, continuously improve product quality at reduced cost and meet constantly changing consumer demands at home and abroad – highlighting the benefits of free trade.

In a recent example, leaders of Spotlight Automotive, German auto giant BMW’s 50-50 EV venture with Great Wall Motor – China’s largest sport-utility vehicle maker, announced in April this year that the venture is designing and building new models it hopes to sell to customers worldwide including Europe and Southeast Asia.

However, the company has indicated it will not operate in markets that impose hefty tariffs on made-in-China cars. Jason Zhang, director of governance and public relations at Spotlight said “except for markets that levy unreasonably high tariffs (on Chinese-made EVs), Spotlight is designing and building cars for customers all over the world.”

Apparently, just like in the case of Spotlight, several other industry collaborations between Chinese EV enterprises and their European counterparts could face daunting challenges as a result of the EU’s latest move to impose tariffs on Chinese-made EVs.

In Europe, the tariffs hike on Chinese-made EVs presents another blow to the bloc’s struggling EV sector. According to Ernst & Young (EY) Mobility Lens Forecaster published in June this year, Europe’s EV sales are slowing as a result of reductions in EV incentives, lack of affordable EV models and consumer concerns about insufficient chargers. Conversely, China remains on course for growth with EVs expected to account for more than 50 percent of all sales by 2030 – two years faster than previously suggested by forecasts.

Clearly, both parties could have benefited enormously if the EU had opted for win-win cooperation rather than impose new tariffs on Chinese-made EVs.

Economy

SEE Today’s Black Market Exchange Rate: Dollar (USD) To Naira (NGN) – January 19, 2025

Published

2 minutes ago

January 19, 2025

Naijablitznews

What is the Dollar to Naira Exchange Rate in the Black Market (Parallel Market/Aboki FX)?

Check out the latest black market Dollar to Naira exchange rate for January 18, 2025. You can exchange your dollars for Naira at these rates:

How much is the Dollar to Naira today in the black market?
The current black market exchange rate for Dollar to Naira (Aboki FX) is as follows:

Buying Rate: N1670
Selling Rate: N1680
These rates were obtained from sources at the Bureau De Change (BDC) in Lagos on Saturday, January 18, 2025.

Important Notice:
The Central Bank of Nigeria (CBN) does not recognize or endorse transactions in the parallel market (black market). Individuals looking to engage in Forex transactions are advised to approach their respective banks for official exchange rates.African fashion collections

Dollar to Naira Black Market Rate Today:

Buying Rate: N1670
Selling Rate: N1680
Dollar to Naira CBN Rate Today:

Highest Rate: N1559
Lowest Rate: N1545
Please note: Exchange rates may vary depending on location and negotiation terms, and the rates mentioned here are for reference purposes only.

Economy

Nigeria secures aircraft financing deal with Afreximbank

Published

3 days ago

January 16, 2025

Naijablitznews

By Francesca Hangeior

A development financing institution, African Export–Import Bank, Afreximbank, has agreed in principle to collaborate with Nigeria on aircraft financing.

Afreximbank, while announcing plans to launch a leasing subsidiary, which will soon take delivery of 25 aircraft to be leased to African airlines, said it will provide Nigerian airlines with access to dry-leased aircraft that would enable them to better service Bilateral Air Service Agreement, BASA, routes and domestic operations.

A statement by Mr Tunde Moshood, special adviser on Media and Communications to the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, said the partnership was achieved during a side meeting held with the Afreximbank team at the four-day Aviation Economic Conference in Dublin, Republic of Ireland.

The statement reads: “A significant milestone in Nigeria’s aviation sector was achieved during a side meeting held with the Afreximbank team at the ongoing Aviation Economic Conference in Dublin, Republic of Ireland. The meeting, facilitated by Boeing’s Senior Director of Finance, Lereece Rose, brought together key stakeholders to discuss aircraft financing opportunities for Nigerian airlines.

“The meeting was attended by the Minister of Aviation and Aerospace Development, Festus Keyamo SAN, who led the Nigerian delegation. The delegation included distinguished members such as the Chairman, Senate Committee on Aviation, Senator Abdulfatai Buhari; Chairman, House Committee on Aviation, Abdullahi Idris Garba, Chairman, Senate Committee on Banking, Insurance, and Other Financial Institutions, Senator Abiru Adetokunbo; Director General of the NCAA, Capt. Chris Najomo; Managing Director of Fidelity Bank, Dr. Nneka Onyeali-Ikpe; COO of Air Peace, Toyin Olajide; CEO of XEJet, Emmanuel Iza; Chairman, ValueJet, Kunle Soname and his Managing Director, Capt. Majekodunmi, and Chairman/CEO of Bellagio Air, Dr. Oludare Akande, among other aviation stakeholders.

“At the meeting, Afreximbank, led by its Director and Global Head of Project and Asset-Based Finance, Helen Brume, agreed in principle to collaborate with Nigeria on aircraft financing. Highlighting the bank’s extensive experience in supporting airlines such as Arik Air, Kenya Airways, and TAG over the past two decades, Brume emphasized the need for robust aviation infrastructure to enhance the competitiveness of African airlines.

“To address this, Afreximbank announced plans to launch a leasing subsidiary, which will soon take delivery of 25 aircraft to be leased to African airlines. This initiative aims to provide Nigerian airlines with access to dry-leased aircraft, enabling them to better service Bilateral Air Service Agreement, BASA, routes and domestic operations.

“Lereece Rose commended the Minister for his efforts in improving Nigeria’s aviation ecosystem, particularly in raising Nigeria’s Cape Town Convention score from 49.5% to 75.5 per cent. This progress underscores the country’s commitment to creating an enabling environment for aircraft financing and leasing.

“The Minister highlighted the critical need for partnerships that would enhance access to aircraft financing for Nigerian operators, facilitating growth and improved service delivery. In response, Afreximbank affirmed its readiness to work with the Nigerian government, signaling a promising future for the country’s aviation industry.

“A committee has been established to follow up on the discussions, ensuring that this partnership materializes into actionable solutions for Nigerian airlines.”

Economy

SEE Dollar (USD) to Naira Black Market Rate Today January 16, 2025 Aboki

Published

3 days ago

January 16, 2025

Naijablitznews

As of January 16, 2025, the Nigerian Naira (NGN) has continued to experience some level of volatility against the US Dollar (USD), while this has been the norm for decades now, this largely to some extent reflects the ongoing economic challenges.

See the Naira performance across various currencies

A quick check at the parallel market at Abuja Zone 4 market,as at January 16, 2025 , the black market exchange rate stands firmly at approximately ₦ 1,663.00 per USD. This means if you want to buy a dollar now, it is ₦ 1,663.00 while if you want to sell it is approximately ₦ 1,652.00 .

Please be aware that the parallel market or the black market rates are mostly and notably higher compared with what you get from the official market or CBN rate

Dollar to Naira (USD to NGN) Black Market Exchange Rate Today

Selling Rate ₦ 1,663.00

Buying Rate ₦ 1,652.00