Business
“Tariffs have never been seen to actually lead to the results that the tariffs have intended to close down an industry, to stop competition, or to really stop a company from succeeding in the market,” said Mark Greeven, China CEO of a business school.
BEIJING, July 19 (Xinhua) — The China CEO of a world-renowned business school criticized tariffs on trade, saying such barriers have failed to achieve their intended results throughout history.
“Tariffs have never been seen to actually lead to the results that the tariffs have intended to close down an industry, to stop competition, or to really stop a company from succeeding in the market,” Mark Greeven, CEO of the International Institute for Management Development China, told Xinhua.
Western assumptions about China producing cheap, low-quality electric vehicles (EVs) are misguided, with China now the world leader in this area, said Greeven at the launching ceremony of the 2024 China Company Transformation Indicator (CCTI) held recently in Beijing.
The CCTI, developed by the Institute’s China Initiative, offers a comprehensive analysis of the transformative capabilities of leading companies across key sectors, such as food and beverage, new energy vehicles (NEV) and new materials, in China’s evolving economic landscape.
It found that leading companies in China prioritize boosting resilience and future growth prospects, focusing on innovation, adaptability and alignment between market forces and government policies.
“Innovation is the name of the game,” Greeven said, adding that to win in China, companies must prioritize innovation, especially in the NEV sector, which has experienced rapid growth in recent years.
The CCTI highlights the dominance of domestic brands like BYD and Geely, along with new players such as Xpeng, Li Auto, and Nio. Tesla remains the sole top foreign brand.
Greeven said that China’s effort to electrify has involved substantial investment in R&D, bringing a host of technological advances. China’s battery technology, for example, is now the best in the world.
According to the China Automobile Dealers Association, the market share of Chinese independent brands has grown significantly, from 41.2 percent in 2021 to 56.1 percent in the first five months of 2024.
Concerning EU and U.S. tariff increases on Chinese electric vehicles, Greeven stated that tariffs are never a good idea. Blocking consumer access to higher-quality, greener products at lower prices is unwise.
Greeven emphasized that tariffs will not stop competition or a company from succeeding in the market, so tariffs are not the tool to make that happen.
On the contrary, the industry welcomes free competition and a free market, which allow companies to learn from each other.
Raising trade tariffs does not leave Chinese companies without options, Greeven said, adding that numerous Chinese electric vehicle producers are shifting their focus to other emerging economies such as Brazil, the Middle East and Southeast Asia.
“In any case, examples of effective tariffs are few and far between,” Greeven said. “Instead, the result is often to shelter local firms from competitive pressure, leading to technological stagnation.” ■
“My elegant grandpa says this plugin is nice!”
““Tariffs have never been seen to actually lead to the results that the tariffs have intended to close down an industry, to stop competition, or to really stop a company…”
Source Link: https://english.news.cn/20240719/e4a5fae851fb4190b157f6c1763b703b/c.html
#Business – BLOGGER – Business
