Trade tensions with Europe are not an obstacle for China. Beijing is ready to continue its partnership with the region. According to Reuters, Chinese automakers will not shy away from investing in Europe despite tariff hikes. The country’s manufacturers are committed to expanding their presence in local markets despite a trade war.
Chinese auto giants plan to continue investing in Europe and integrating into local markets, even in the face of the European Commission's anti-subsidy probe into Chinese-made electric vehicles.
Earlier, European Union leaders agreed to raise trade tariffs on Chinese EVs to 25% from 10%. This move aims to prevent Chinese manufacturers from flooding the market with their products. According to EU officials, they benefit from Beijing’s state subsidies and dumping practices that harm the regional industry.
In response, Cui Dongshu, secretary general of the China Passenger Car Association, emphasized the important role of China's carmaking industry in creating jobs in Europe. "Chinese firms won't take aggressive measures or low-pricing moves to disrupt the stability of employment in Europe," he said, adding that Chinese companies have no plans to abandon their expansion efforts in the EU. Notably, Nio, the eighth-biggest EV maker in China, has received regulatory approval to build a third factory in the country, which is expected to boost its production capacity to 1 million cars.
Despite fierce competition and EU tariffs, Chinese EV manufacturers continue to ramp up production and master international markets. In 2023, one in five EVs sold in Europe came from China. Analysts estimate that their share will rise to 25% this year. Against this background, European authorities are considering a complete ban on EVs or closing the market to Chinese cars.
In September 2023, European Commission President Ursula von der Leyen launched an anti-subsidy investigation into Chinese EVs. "Global markets are now flooded with cheaper Chinese electric cars. And their price is kept artificially low by huge state subsidies," she said. However, the investigation was inconclusive as prices for Chinese cars in the region were found to be higher than those in China.
