Hungary's Stance Against EU Tariffs Sparks “Economic Cold War” Concerns

Hungary's Prime Minister Viktor Orban opposes EU tariffs on Chinese electric vehicles, warning of an 'economic cold war' with China. The EU tariffs, intended to counter Chinese subsidies, face criticism for fostering protectionism. Hungary, aligning closely with China, advocates for 'economic neutrality' amidst escalating trade tensions.

The European Union may be on the brink of an 'economic cold war' with China, according to Hungary's Prime Minister Viktor Orban. On Friday, he announced Hungary's opposition to the EU's proposed higher tariffs on Chinese electric vehicles.

The EU is gearing up to finalize these tariffs, which are a part of a larger dispute concerning Chinese government subsidies and Beijing's expanding exports of green technology to the EU. Orban warned that such economic protectionism could cripple the EU's economy, calling it the 'worst thing that can happen to Europe.'

As the EU previously imposed provisional tariffs of up to 37.6% on Chinese EVs, Beijing responded with a complaint to the World Trade Organization and launched investigations into European exports. Hungary, courting investments from China, sees EU protectionism as a threat to its economy and advocates for a policy of 'economic neutrality.'

(With inputs from agencies.)