<\/p>\n Supported by<\/p>\n <\/a><\/p>\n Insights from Central European Institute of Asian Studies, Royal United Services Institute, and the Rhodium Group<\/p>\n The EU is \u201cadvancing<\/a>\u201d its probe into Chinese electric vehicles as the bloc aims to curb China\u2019s overcapacity of green tech ahead of Xi Jinping\u2019s visit to Europe next week, EU trade chief Valdis Dombrovskis told Politico.<\/p>\n Dombrovskis hinted that Brussels could impose tariffs on Chinese EVs \u201cbefore the summer break\u201d as European firms struggle to compete with Chinese goods. Those actions seem more likely after the European Commission warned Chinese EV makers BYD, SAIC, and Geely that they had provided insufficient data<\/a> in the anti-subsidy investigation, Reuters reported.<\/p>\n European lawmakers are still hoping they can convince Xi to scale back his protectionist economic model to allow for more equitable competition in green tech. But China-friendly countries, notably Hungary \u2014 which plays a significant role in Europe\u2019s own EV production \u2014 are making it more challenging for Brussels to counter Chinese competition. Tariffs may also do little to slow Chinese imports, some analysts believe.<\/p>\n Source: \u00a0Reuters<\/p>\n Instead of waiting for the EU to impose tariffs on Chinese EVs, France last year excluded Chinese-made EVs from its cash bonus scheme where new buyers can get subsidies of up to $7,500 for certain EV models. Within four months, the scheme already had a sizable impact: Tesla\u2019s Model 3, the Dacia Spring, and the SAIC MG4 EVs \u2014- all assembled in China \u2014 had a market share of 22% in the months before the scheme\u2019s implementation. That share dropped to just 4%<\/a> in April, according to a Reuters analysis, which France touted as a sign that such measures can help boost sales of European-made cars.<\/p>\n Sources: \u00a0Royal United Services Institute, Central European Institute of Asian Studies, European Council on Foreign Relations<\/p>\n Hungary is embracing Chinese investments \u2014 Beijing became its biggest investor in 2023 \u2014 and has become a hub for Chinese EV parts production. Despite it\u2019s growing economic ties with China, the EU cannot risk alienating Budapest given its crucial role in the supply chain of European automakers, as companies like Mercedes-Benz and BMW open new factories there, China analyst Sari Arho Havr\u00e9n of the Royal United Services Institute, a security think tank, told Semafor. But \u201cit\u2019s clear that China has an advantage\u201d in Hungarian investment, and Europe will struggle to catch up to the financial demands of cash-strapped Hungary, according to China analyst Sebesty\u00e9n Hompot of the Central European Institute of Asian Studies. That\u2019s sounding alarms in Brussels, where lawmakers learned the hard way not to rely on adversaries like Russia for energy<\/a>.<\/p>\nSemafor Signals<\/h3>\n
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The News<\/h3>\n
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SIGNALS<\/h3>\n
Sales of Chinese-made EVs drop in France<\/h3>\n
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EU can\u2019t alienate China-friendly Hungary<\/h3>\n
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