Hello. Many of you are reading this newsletter from a smartphone, and perhaps a few of you are being told off for staring at an electronic device instead of speaking to the people around you. You might then be inspired by the 10 teenagers who swapped their smartphones for old-school "dumbphones" for a few days, only to find out that they could speak to their parents. We're also covering EU-China trade, Thai cinema and Danish palates.   

QUESTIONS ANSWERED

EU threatens Chinese electric vehicles with tariffs 

Chinese firms are said to be able to make electric cars for 25% less than their European and US rivals. Credit: Getty Images

Chinese electric cars may become pricier in the European Union, after the 27-nation bloc announced manufacturers could face tariffs up to 38% from 4 July. The union is conducting an investigation into what it claims is a flood of cheap, government-subsidised Chinese cars into the continent.

What has prompted the move?

China’s domestic auto industry has grown rapidly over the past two decades. The result has been the breakneck development of companies like BYD. With Chinese brands having plenty of surplus capacity and moving into international markets, Western policymakers fear their own companies will be unable to compete. 

What has been the reaction?

The decision has drawn criticism not just from China, but also from politicians within the EU and several industry figures. China's foreign ministry spokesperson Lin Jian said the "anti-subsidy investigation is a typical case of protectionism". Mercedes-Benz and Stellantis — which owns many European brands — also spoke out, emphasising the importance of free trade.

Why aren't EU companies too happy about tariffs? 

Tariffs could hurt them as well as helping them. Firstly, they would not just affect Chinese brands. For example, BMW’s iX3 electric SUV is built at a factory in Dadong and exported to Europe. Secondly, a number of these still export high-value models to Chinese markets. If China wanted to retaliate by imposing its own hefty tariffs, these shipments could be targeted.

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• Across the pond: Last month, US President Joe Biden ramped up tariffs on Chinese-made electric cars to 100%, one of the latest hits in a trade war that started in 2018. 

• Industry response: Tesla boss Elon Musk said he opposed US tariffs on Chinese electric vehicles, although he warned in January that Chinese car makers would "demolish" competitors without trade barriers.

• The numbers: Electric vehicles sales are down in Western countries, but many more will be needed to hit climate targets, Ben Chu reports.

THE BIG PICTURE

The viral film making South East Asia cry

How to Make Millions Before Grandma Dies is the 11th highest grossing Thai film. Credit: GDH559

A Thai film titled How to Make Millions Before Grandma Dies tells the story of a young man plotting to win an inheritance from his cancer-stricken grandmother, but whose motives are questioned as he grows closer to her. It is such an efficient tear-jerker that moviegoers film themselves crying as the lights are turned back on in theatres, writes Kelly Ng. 

And finally... in Denmark

The Danish food agency has recalled several spicy ramen noodle products made by South Korean company Samyang, claiming they contain potentially poisonous levels of capsaicin - that's the chemical that causes the burning sensation. The company said it exports those products across the world and this is the first time they have faced such a recall. The move has provoked some heated debate on social media.