Myfxtools
  • Login
  • Expert Advisors
  • Forex Signals
    • Best Forex Signals
  • Forex Brokers
  • Forex Trading
    • Forex Guides
    • Analytical Tools
    • Charting Software
  • Crypto Trading
  • Portfolios
No Result
View All Result
  • Expert Advisors
  • Forex Signals
    • Best Forex Signals
  • Forex Brokers
  • Forex Trading
    • Forex Guides
    • Analytical Tools
    • Charting Software
  • Crypto Trading
  • Portfolios
  • Login
Myfxtools
Home News

The EU-China Spat Over Electric Vehicles

by Myfxtools
September 15, 2023
in News
Share on TwitterShare on Facebook

The European Union (EU) and China find themselves embroiled in a dispute over electric vehicles, which could have significant implications for the auto industry. The EU recently initiated an investigation into Chinese subsidies for electric-vehicle manufacturers, citing concerns about unfair competition and artificially low prices. In response, China condemned the probe as “naked protectionism” that would harm economic and trade relations between the two regions.

This ongoing dispute has presented an interesting opportunity for auto stocks, potentially serving as a catalyst for short-term market movements. Companies like Tesla, widely popular in both Europe and China, could stand to benefit from the conflict. Notable Chinese electric-vehicle manufacturers such as Nio, XPeng, and BYD, along with their European counterparts like Volkswagen, Mercedes-Benz, and Stellantis, have experienced fluctuations in their stock values as a result of support from their respective camps.

The EU’s concerns regarding Chinese competition are not unfounded. According to Rosalie Chen, an analyst at research group Third Bridge, Chinese independent automotive brands have a distinct advantage in developed markets due to their high value-for-money offerings.

As the EU and China continue to navigate this dispute, the auto industry remains on high alert for any further developments that could impact market dynamics. Regardless of the outcome, it is clear that electric vehicles have become a focal point in the broader context of international trade relations.

The Rise of Chinese Electric Vehicle Brands in Europe

Chinese electric vehicle (EV) manufacturers have experienced significant growth outside of their home market, according to the European Electric Car Report. One particular standout is China’s BYD, which holds the title of the single fastest-growing EV manufacturer in Europe. From January to the end of July 2023, BYD saw a remarkable 323% increase in registrations. This data, provided by Matthias Schmidt, publisher of the European Electric Car Report, covers a staggering 95% of Europe’s EV volumes.

Compared to their European counterparts, Chinese manufacturers saw registrations surge by over 130% in the same period. In contrast, European brands achieved a more modest 36% growth rate. This growth is a testament to the success and competitiveness of Chinese EV manufacturers in pushing into the European market.

Chen, a representative of the Chinese EV industry, believes that a more integrated supply chain contributes to the cost efficiency of Chinese manufacturers. While EU regulators may suggest that government subsidies play a role in keeping prices low, Chen emphasizes the significance of independent research and development of core components by Chinese companies. In contrast, multinational auto manufacturers often rely on integrating components from multiple suppliers for different models, which can increase costs and create collaboration challenges.

However, Chinese EV makers still face obstacles when it comes to expanding into the European market. Apart from potential disruptions caused by the ongoing EU-China spat, the highly competitive and established nature of EU markets poses challenges. Chen acknowledges that competing with well-established global automotive manufacturers in terms of scale and potential may not necessarily be easier than exploring opportunities in other regions such as Russia, Iran, Central and South America, or Oceania.

Despite these challenges, Chinese electric vehicle brands have made significant strides in Europe and continue to explore new global opportunities.

forex ea chart
Would you like to try out trading with an Expert Advisor?
Check Out Best Forex EAs Here
Tags: auto industryChinaelectric vehiclesEU
Previous Post

Singapore’s Employment Growth Slows amid Cooling Labor Demand

Next Post

Nikola Stock Rises as Company Addresses Investor Concerns

Next Post

Nikola Stock Rises as Company Addresses Investor Concerns

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

82 + = 89

Recent Posts

  • Economic Calendar for the Week of June 29th
  • NZD/USD Strengthens as Fed Independence Questioned
  • USD/CNH Seen Ranging Narrowly With Downside Bias Building
  • Euro Climbs as Trump Fed Remarks Boost Rate-Cut Bets
  • Euro Poised for Higher Range on Strong Momentum
  • About Us
  • Contact Us
  • Privacy Policy
  • Risk Disclosure
Myfxtools turns raw trade logs into verified dashboards and AI-driven insights - helping traders see, share, and sharpen their edge.

© 2025, Myfxtools. All rights reserved.

AI Strategy Insight is educational and not financial advice.

  • Expert Advisors
  • Forex Signals
    • Best Forex Signals
  • Forex Brokers
  • Forex Trading
    • Forex Guides
    • Analytical Tools
    • Charting Software
  • Crypto Trading
  • Portfolios

© 2025, Myfxtools. All rights reserved.

AI Strategy Insight is educational and not financial advice.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In