The European Commission is threathening legal action against China for discrimination against European car companies, with their latest decision to revise tax tariffs for car parts which indirectly forces companies to source components from Chinese producers.
China has reclassified car parts as ‘fully finished cars’, something like CBU, which carries a 34% tax, double from the previous rate. Because parts are expensive to bring in now, in order to be economically competitive manufacturers have to source parts from Chinese producers to avoid the high tax.
The problem is foreign car manufacturers are not allowed to setup their own businesses in China. They must partner up with an existing Chinese company, forced to accept minority shareholding. Allowing a Chinese company access to all your designs would only result in one thing, vehicle piracy!
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AI-generated Summary ✨
The comments predominantly criticize China's extensive copying and piracy of foreign automotive designs, describing it as blatant theft rather than innovation. Several highlight that China copies models like Honda CR-V and Mercedes C-Class with alarming similarity, and express concerns over quality and safety risks. Some defend the practice by comparing it to Japan, Korea, and Taiwan's history of copying to develop, noting China's potential to evolve beyond piracy. A few respondents mention China's outdated R&D, government-endorsed piracy, and environmental or ethical issues. Overall, sentiments lean toward disapproval of China's copying strategies, viewing them as unfair and damaging, though a minority acknowledge that copying has historically played a role in development. There is also concern about Malaysia and other countries falling into similar patterns if they adopt copying practices.