EU headed for "economic cold war" with China, Hungary's Orban says (updated)

OTP Bank Nyrt.

04/10/2024 07:31

(Adds detail, more comments)
       BUDAPEST, Oct 4 (Reuters) - Hungarian Prime Minister
Viktor Orban warned on Friday that the European Union was headed
for an "economic cold war" with China as the bloc's leaders
prepared for a pivotal vote on imposing tariffs on imports of
Chinese-made electric cars.
    European Union members will vote on Friday on whether to
impose tariffs for the next five years of up to 45% on imports
of Chinese-made electric vehicles in the bloc's highest profile
trade case, which risks retaliation from Beijing.
    After abstaining from a first non-binding vote on the
proposal in July, Germany, Hungary's main trading partner and
the EU's largest economy, will vote against the introduction of
EU tariffs, people with knowledge of the matter told Reuters.
    "What they are making us do right now, or what the EU wants
to do, is an economic cold war," Orban told state radio in an
interview, referring to the proposed EU tariffs on China.
    Orban, who has spearheaded a drive in central Europe to
bring Chinese electric car and battery manufacturing plants to
Hungary, said the landlocked country did not want to be squeezed
into either bloc and wanted to keep trading with both sides.
    He added that products made in the EU will be increasingly
difficult to sell if world economy is split into two blocs and
that it was unclear if Hungary can successfully pursue its
strategy of "economic neutrality."

 (Reporting by Gergely Szakacs and Anita Komuves)
 ((KOMUVES.Anita@thomsonreuters.com;))