China

The motivation behind the West's and China's granting of loans to African countries differs considerably. Western countries are more likely to lend to resource-poor and highly indebted African countries than China. China's lending to Africa is more driven by its economic interests, lending to countries with richer resources, lower risk of default, and higher willingness to pay for loans. These conflicting interests jeopardize much-needed debt relief for African countries, according to a new study by the Kiel Institute that examines lenders’ motives for lending to African countries.

Starting on July 4, 2024, the European Union will impose provisional countervailing duties of on average 21 percent on battery electric vehicles (BEVs) imported from China. This decision follows an investigation that found evidence of WTO-incompatible subsidies for Chinese BEVs. The EU is now the last major market to establish new trade barriers against Chinese BEVs. While imports of Chinese vehicles may significantly decrease, the long-term impact on electric vehicle prices is expected to be minimal. It could be particularly advantageous for the EU to now adjust its tariff policies towards other WTO members as well.

Prof. Dr. Moritz Schularick comments on the European Commission’s decision to impose countervailing duties on Chinese electric vehicles: