Chinese EVs flooded into the EU to avoid tariffs 

A tsunami of cut-priced electric vehicles from China raced to beat the European Union deadline

Chinese green auto brands raced to flood European markets last month with cheap electric vehicles. The move came ahead of European Union tariffs of up to 45%, rolled out on July 5.

Beijing’s state-funded high-tech industries are posing a direct threat to the EU. As the world’s second-largest economy slows, China is exporting its excess capacity at rock-bottom prices.

President Xi Jinping’s government has used this strategy before, submerging the single market in a tsunami of low-cost solar panels and wind turbines. This nearly wrecked the EU’s green manufacturing base.    

Now, Europe is pushing back after hardball talks between Brussels and Beijing in a move to protect Europe’s giant auto sector. 

“Beijing has good reason to make significant concessions to the EU as it is the only major market that remains largely open to China’s EVs,” Jacob Gunter, a senior analyst at the Mercator Institute for China Studies think tank, or MERICS, said.

European leaders [are] facing challenges at home.

Jacob Gunter, a senior analyst at the Mercator Institute for China Studies

Electric dreams or nightmares:

Delve deeper: “European leaders facing challenges at home might be tempted to seek a settlement,” Gunter, of MERICS, said.

Between the lines: “But that could come at the price of selling European interests short rather than standing firm to protect the common market,” he added.

Big picture: Chinese electric vehicles were high on the agenda during Italian Prime Minister Giorgia Meloni’s trip to Beijing for talks with Comrade Xi. It will be interesting to see how that pans out in the weeks ahead.

China Factor comment: The big question for China and the European Union is who will blink first when caught in the EV headlights.