PODCAST: China Talks with EU on EV Tariffs, and Indonesia Eyes Temu Ban

China and the EU are trying to reach a deal to avoid EU tariffs on Chinese EVs. And Indonesia asks Apple and Google to evict China’s popular Temu e-commerce app.

By Doug Young & Rene Vanguestaine

The European Union’s latest tariffs on Chinese electric vehicles (EVs) are a continuation of the ongoing global trade tensions surrounding China’s state-supported industries. Following the United States’ lead, the EU has imposed new tariffs on Chinese EVs, though at a slightly lower level. The EU has rejected a Chinese proposal to set a minimum price of €30,000 for imported Chinese EVs.

The €30,000 minimum price suggested by Beijing is seen as insufficient, given that many European EVs, especially those from major German manufacturers, are priced significantly higher. Accepting this proposal would likely still make Chinese imports much more competitive. Additionally, allowing China to dictate a minimum price could undermine the EU’s negotiating leverage.

The EU also appears inclined to negotiate directly with individual Chinese carmakers rather than on a country-to-country basis. This approach is likely driven by concerns about transparency and control over the discussions. China, in contrast, prefers state-level negotiations, as they provide Beijing with greater control over the narrative and information shared with European regulators. Allowing direct talks between European authorities and individual Chinese companies could lead to a loss of control for Beijing, potentially exposing details about subsidies and government directives.

The EU’s position is complicated by internal divisions, as countries like Germany and Spain have opposed the new tariffs due to their economic interests in China. Germany, in particular, has a significant automotive industry and is wary of potential Chinese retaliation that could affect its exports to China. However, enough EU member states support a strong stance to move forward with these protective measures.

Chinese E-commerce Giant Under Fire

On another front, Indonesia is also pushing back against Chinese influence, this time targeting e-commerce. The Indonesian government has requested Google and Apple to remove the popular Temu shopping app from their domestic app stores to protect local small and mid-sized merchants. Temu, an overseas arm of China’s Pinduoduo (PDD), is known for selling ultra-cheap goods.

This kind of direct intervention—asking tech giants to remove a commercial app without allegations of illegal activity—is uncommon. Similar requests have often been associated with China’s approach to internet governance. Apple has complied with such requests from the Chinese government in the past, while Google refused and subsequently left the Chinese market. How Apple and Google will respond to Indonesia’s request remains to be seen.

This move by Indonesia may set a precedent for other countries in Southeast Asia, where local businesses are increasingly concerned about the impact of cheap Chinese imports. Countries like Brazil and Turkey have also pushed back against Chinese products in recent years to protect domestic industries, signaling a broader global trend of resistance against aggressive Chinese market expansion.

While Indonesia’s approach focuses on removing the app as an intermediary, other nations, like the United States, are adopting different tactics. The U.S. is not seeking to ban apps like Temu but rather to close loopholes, such as the de minimis import exemption, which allows these companies to import goods without paying duties. This approach is less politically charged and applies uniformly to all imports, making it more palatable in a democratic context.

About China Inc

China Inc by Bamboo Works discusses the latest developments on Chinese companies listed in Hong Kong and the United States to drive informed decision-making for investors and others interested in this dynamic group of companies.

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