China dominates Euro 2024: Major sponsorships stir up trade tensions
China will mark Euro 2024. Five of the 14 main partners of the European Championships in Germany are Chinese companies, including the automotive giant BYD, on which the EU wants to impose tariffs. Europe fears Chinese companies, which will reach thousands of people in the heart of the EU for a month.
1:27 PM EDT, June 14, 2024
During Euro 2020, small Volkswagen cars delivered match balls onto the field. Now, the giant won't be at the football event at all. Last year, Volkswagen decided not to cooperate with UEFA for the 2024 European Championships. The company's authorities prioritized "financial discipline," which was taken advantage of by BYD - the world's largest electric car manufacturer. UEFA decided that this Chinese giant would be the sponsor.
The BYD brand will appear at Euro 2024 just a few days after the European Commission threatened to impose temporary tariffs on Chinese electric vehicles due to Beijing's "unfair subsidization" of Chinese companies in this sector. According to the EU, Chinese manufacturers pose a threat to European companies.
Brussels will first try to negotiate with China, but if the Middle Kingdom does not yield (and it does not seem like it will), starting July 4, the EC will impose a 17.4% tariff on BYD cars, a 20% tariff on Geely cars, and as much as a 38.1% tariff on SAIC vehicles. Other Chinese electric vehicle manufacturers who cooperated in the EC investigation will be subject to a 21% tariff, and those who did not cooperate will face a 38.1% tariff.
Beijing has great financial and production capabilities, so Chinese companies will increasingly elbow their way into major sports events. Especially when this is expected by the Chairman of the People’s Republic of China.
