Brussels Playbook Podcast Holiday special: Driving toward a trade war with China
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Apr 18, 2025 In this insightful discussion, Jordyn Dahl, POLITICO’s mobility reporter, Abigaël Vasselier from the Mercator Institute for China Studies, and Max Greira, POLITICO's politics reporter, tackle the rising trade tensions between the EU and China. They explore how affordable Chinese electric vehicles challenge the European automotive industry, leading to discussions on tariffs and market protection. The complexities of the EU's strategy toward electric vehicles and its dependency on China are analyzed, highlighting both competitiveness and security concerns.
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No Trade War Yet, Says Analysts
- The idea that a trade war has started is mainly Beijing's narrative to blame the EU.
- EU and China engage in tit-for-tat duties, but the EU is pushing back through WTO complaints too.
Europe's De-risking Challenge
- Europe recognizes dependency on unreliable trade partners is dangerous and pursues risk reduction strategies.
- De-risking requires broad buy-in from trade unions, companies, and citizens, not just government action.
Chinese EVs Affordable Despite Duties
- Chinese electric vehicles cost around 20,000 to 30,000 euros, making them affordable to consumers.
- The duties imposed likely won't affect consumer prices as manufacturers absorb the extra costs.