EU trade war fears with China over car production

EU carmakers face Chinese competition as factories shift production to Europe.

Oct 7, 2026

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EU trade war fears with China over car production

EU carmakers face Chinese competition as factories shift production to Europe.

In brief

EU carmakers face Chinese competition as factories shift production to Europe. European carmakers allow Chinese manufacturers to produce cars in their factories to meet EU emissions targets and avoid closures, risking long-term competition and potential takeovers. Originally reported by EUobserver.

Chinese carmakers expanding in Europe

Chinese carmakers are taking an increasing share of the European car market, particularly when it comes to electric vehicles.

EU tariffs on Chinese electric cars

Two years ago, the EU imposed hefty tariffs on Chinese electric cars to address imports.

Chinese production in Europe

Chinese production in Europe

Chinese manufacturers are setting up production in Europe through new factories or partnerships with European carmakers.

Stellantis and Leapmotor partnership

Stellantis and Chinese manufacturer Leapmotor are partnering to produce electric vehicles in Europe.

Dongfeng negotiations

Dongfeng is negotiating to produce cars at the French plant of Rennes La Janais.

European carmakers' challenges

European carmakers' challenges

European carmakers struggle to meet EU emissions targets and avoid factory closures by partnering with Chinese manufacturers.

The essence

European carmakers allow Chinese manufacturers to produce cars in their factories to meet EU emissions targets and avoid closures, risking long-term competition and potential takeovers.

Read the original on EUobserver

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