A smart European strategy for electric vehicle investment from China
Executive summary
The European Union’s push to decarbonise road transport relies critically on a rapid shift to electric vehicles (EVs). However, European carmakers face high production costs and limited battery capacity, leaving them unable to supply affordable mass-market EVs at scale. Chinese manufacturers have stepped into this gap and their cost-competitive models now account for a quarter of EU EV sales. Chinese firms have also become major investors in Europe’s battery and EV supply chains.
This influx of Chinese foreign direct investment presents Europe with a strategic dilemma. There are clear short-term benefits: Chinese investment expands production capacity, sustains regional jobs and accelerates the…
