# EU trade war fears with China over car production

> EU carmakers face Chinese competition as factories shift production to Europe.
- Title: EU trade war fears with China over car production · EUobserver
- Summary: EU carmakers face Chinese competition as factories shift production to Europe. European carmakers allow Chinese manufacturers to produce cars in their…
- Keywords: chinese carmakers, electric vehicles, production, trade war, eu tariffs, stellantis, leapmotor, dongfeng, rennes la janais, volvo, geely, trade
- Source: EUobserver — https://euobserver.com/241466/listen-are-we-now-heading-to-a-trade-war-with-china
- Published: 2026-10-07T08:31:50+00:00
- Read time: 1 min
- Topics: eu, chinese carmakers, electric vehicles, production, trade war, eu tariffs, stellantis, leapmotor, dongfeng, rennes la janais, volvo, geely
## 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 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 struggle to meet EU emissions targets and avoid factory closures by partnering with Chinese manufacturers.
## Key takeaway

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.