Wu Zelin, Associate Researcher, Institute of International Relations, Shanghai Academy of Social Sciences
Despite the EU’s incentives for its domestic electric vehicle industry and restrictions on imports from abroad, there are still opportunities for cooperation. First, China can improve communication and consultation with the EU. On the one hand, cooperate on training in areas such as battery carbon footprint accounting standards and battery recycling, which would help the entire industry chain meet carbon emission requirements. On the other hand, continue discussions to address unfair trade barriers against China.
Second, Chinese car companies can set up production factories in the EU or elsewhere. Even if the EU decides to impose tariffs on Chinese electric vehicles, China can avoid these tariffs by manufacturing components domestically and assembling them abroad. Some EU member states are also actively attracting Chinese carmakers to develop local supply chains and create jobs. In this context, Chinese companies may still retain a cost advantage.
Third, promoting plug-in hybrids as flagship products for the EU market could serve as a breakthrough for China.
Fourth, cooperation between Chinese battery manufacturers and EU car brands is crucial. As Chinese battery companies tend to have both scale and cost advantages, using Chinese batteries can reduce the cost and improve the competitiveness of EU electric vehicles, leading to a mutually beneficial outcome in the market.
Finally, China should strengthen partnerships with EU carmakers for mid-to-high-end models, expanding its market presence with higher-quality products.
