Europe Braces for Flood of Cheap Chinese Electric Cars
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China plans to flood the West with cheap electric cars and solar panels to offset its domestic economic troubles. This has policymakers worried about Chinese dumping that could undermine Western industries.
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A shipment of 5,000 electric cars from Chinese manufacturer BYD recently arrived at a Dutch port, concerning European carmakers who fear being undercut on price.
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Chinese electric vehicles already capture 10% of Europe's EV market and are thousands cheaper than European and American models. Experts predict China's EV market share rising to 40% globally by 2030.
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The EU has launched an anti-subsidy probe and threatened tariffs on Chinese EVs, concerned that generous Chinese government subsidies have enabled unfair pricing. This could prompt Chinese counter-measures.
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European carmakers rely heavily on Chinese parts and operations, so curbing China's expansion may backfire. Yet they also worry about competing with ultra-cheap Chinese vehicle imports that could "demolish" them.