Chinese electric cars dominate the European market due to their lower cost and similar quality.
The Chinese growth poses a threat to the European automobile industry in its transition towards electric mobility.
There is a risk of a trade war between the European Union and China.
The European Commission discovered that state subsidies are the cause of the Chinese competitive advantage.
To balance the competition, a duty of up to 35.3% was proposed on Chinese imports.
The decision about the implementation of the tariffs was not ratified by the majority of the EU countries.
The European Commission holds the power to implement the tariffs for five years but wishes to exhaust negotiations.
The lack of unity in the EU weakens its negotiating position.
A trade agreement with China before September 30 is crucial to avoid a trade war.
Conclusion: The EU faces a critical choice between implementing protective tariffs or subsidizing electric vehicle manufacturing to safeguard the automotive industry and Europe's future of electric mobility.