This article discusses the current state of transatlantic relations with Beijing, focusing primarily on the European Union’s concerns over China’s dominance in the electric vehicle (EV) industry. The EU has raised alarm over its dependency on Chinese imports for crucial components of EVs, such as lithium-ion batteries and fuel cells. The European Commission President, Ursula von der Leyen, has announced an anti-subsidy investigation into Chinese e-cars, highlighting the EU’s determination to protect its own industry and reduce reliance on China. France has also taken action by excluding most Asian exports, particularly from China, from its new electric vehicle purchase subsidy scheme.
The article points out that Germany, with its influential car industry and significant presence in the Chinese market, finds itself in a bind. It fears both Chinese competition and potential retaliation from the Chinese government. However, China has thus far responded to the investigation with strong statements rather than implementing retaliatory measures.
Meanwhile, the article mentions that the EU’s Trade Commissioner is traveling to China to engage in trade dialogue and seek further market access pledges from Beijing. However, skepticism arises as to whether China will respond positively given the ongoing investigation.
Overall, this article highlights the growing concern within the EU regarding China’s dominance in the EV industry and the potential risks of dependency on Chinese imports. It underscores the complex dynamics at play in transatlantic relations with Beijing and the challenges faced by European countries in balancing economic interests with strategic concerns.