EU Confidential Holiday special: Driving toward a trade war with China
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Apr 18, 2025 In this insightful discussion, Jordyn Dahl, POLITICO’s mobility reporter, Abigaël Vasselier from the Mercator Institute for China Studies, and Max Greira, POLITICO's politics reporter, tackle the rising trade tensions between the EU and China. They explore how affordable Chinese electric vehicles challenge the European automotive industry, leading to discussions on tariffs and market protection. The complexities of the EU's strategy toward electric vehicles and its dependency on China are analyzed, highlighting both competitiveness and security concerns.
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EU Faces Chinese EV Flood
- Europe is struggling with cheap Chinese electric vehicles flooding its market, threatening local jobs and industry.
- The EU considers heavy duties to delay Chinese market dominance and protect European carmakers while aiming for greener transport.
EU Targets Chinese EV Subsidies
- The EU commission wants to impose duties up to 35.3% on Chinese electric vehicles to counteract state subsidies.
- This aims to protect European automakers by creating a delay before Chinese EVs saturate the market.
Duties Buy Time for Europe
- The duties create a time gap for European automakers to catch up with Chinese EV technology and market share.
- Chinese companies are investing in Europe, but the embargo intends a temporary pause on their market advantage.