EU vows action against Chinese car competition in auto industry

During Wednesday's press conference, von der Leyen emphasized that the European Commission will prioritize addressing the future of the EU automotive industry. She acknowledged the sector's numerous challenges and underscored the need for decisive action.

She emphasized the need for dialogue on this issue, highlighting the urgency of finding and implementing a shared solution. She noted her role in leading these discussions, given the critical importance of this sector, which supports millions of jobs.

The automotive industry in the European Union is facing increasing pressure from non-European competitors, especially China. In September, Brussels imposed temporary tariffs on Chinese cars whose production is subsidized by Beijing.

China is the largest producer of electric vehicles worldwide. Its global exports increased by 70 percent in 2023, reaching a value of $34.1 billion. The EU is the largest recipient of electric vehicles from China, accounting for almost 40 percent of its exports.

In 2023, EU countries purchased 3.5 billion euros worth of Chinese cars, almost 40 percent more than the previous year. This surge has raised concerns within the Union and in some EU capitals, as the prices of Chinese electric cars are usually about 20 percent lower than models produced in the EU.

After an investigation launched in October 2023, the European Commission concluded that China is subsidizing the production of electric cars, allowing them to be sold at artificially low prices. Subsidies cover the entire production chain—from batteries to direct grants for manufacturers.

This situation has raised concerns that the European automotive industry will struggle to compete with unfair competition from China, similar to the past challenges faced by industries like photovoltaic panel manufacturing. Currently, 90 percent of panels sold in the EU come from China. A weakened European automotive sector could reduce the economy's competitiveness and lead to mass layoffs.

EU tariffs on electric cars produced in China began at the end of October and ranged from 7.8 to 35.3 percent, depending on the manufacturer and state support companies received.

During Wednesday's conference, von der Leyen was asked whether she intends to meet with Donald Trump, especially given that some EU politicians have already visited him, including Secretary-General Mark Rutte, who met with the president-elect at his Mar-a-Lago estate last week. Von der Leyen replied that she had already had an initial phone conversation with Trump.

She expressed her intention to collaborate constructively with the new American administration. However, she acknowledged that security, defense investments, and competitiveness are not exclusively within the European Union's control. Emphasizing the importance of self-reliance, von der Leyen stated her commitment to addressing these priorities based on the EU's needs.

The President of the European Commission also commented on the new position of Commissioner for Mediterranean Affairs, acknowledging that the Mediterranean region will gain a stronger presence in EU policy as a result.