The European Market for Electrical Vehicles: Does it Need Protection From China?

Since late 2024 the EU imposes anti-subsidy tariffs ranging from 7 % to 35 % on imports of battery electric vehicles (BEV) from China. Covering about 10 billion euro of imports, this represents not only the biggest case of an anti-subsidy trade defence investigation (ASTDI), it also combines three unique features:
1. The first own initiative ASTDI (no complaint from industry).
2. The first EU anti-subsidy investigation not accompanied by anti-dumping.
3. The first EU ASTDI for a product for which the EU is a net exporter.
In January the Commission invited Chinese exporters to propose minimum prices to avoid the tariffs. While formally standard practice, accepting a price undertaking on BEVs represents a break with a long-standing opposition to this type of arrangement, that shifts profits to foreign producers.
The political rationale for the BEV tariffs was the narrative that subsidized Chinese BEVs were threatening the European automotive industry. Is this narrative correct? Does the EU automotive industry need protection?

SPEAKERS
Alicia García Herrero, Natixis and Bruegel 
Daniel Gros, Director, IEP@BU
Byford Tsang, Senior Policy Fellow, Asia Programme, ECFR