European car manufacturers are sounding the alarm because they are rapidly being squeezed out of the Chinese market, and Chinese manufacturers are increasingly competing within Europe as well. Although the European Union (EU) is trying to defend itself against the rise of Chinese electric car production in Europe, fueled by competition-distorting state subsidies, with countervailing duties, its customs system for purely electric vehicles has its limitations, which China is taking full advantage of.
The most obvious course of action is for their automakers to increase exports of hybrid vehicles to Europe and plan additional models for the European market, as EU punitive tariffs do not apply to hybrid cars. As a result, according to industry experts
the export of Chinese hybrids to Europe will grow by 20 percent this year and even faster next year.
BYD, China's largest electric car brand, continues to expand in the region using other methods. Part of its strategy is to move production and assembly within the EU,...
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