EU member states took decisive action on 4 October by voting in support of imposing tariffs on Chinese-made electric vehicles (EVs) for the next five years. This move not only indicates the trade policy direction that the EU will increasingly take vis-á-vis China, but it also highlights how difficult achieving European unity can be. In fact, the majority abstained, underscoring the fragility of maintaining consensus amid the rise of “my country first” policies from EU member states.
Securing support for this measure has been a complex process. Back in July, only 12 countries backed provisional tariffs, and now this vote cements a 5-year extension to counter Chinese EV subsidies, which has received less backing, with two less votes in favour. This reflects a pessimistic outlook for the EU, highlighting weak alignment among member states on how to compete with China.
At the heart of the issue is the distribution of labour between Brussels and individual national governments. While the EU aims to protect industries through tariffs, member states often pursue inward-looking agendas influenced by national interests and economic preferences often at odds with one another. For example, the German Chancellor Olaf Scholz has labelled tariffs “protectionist,” reflecting the concerns of local automotive companies that are heavily invested in China. In contrast, France supports a pro-tariffs stance, with President Macron asserting that defending Europe’s car industry is a “no-brainer.”
China, meanwhile, has skillfully exploited these fractures. While the tariffs may have a limited impact on Chinese EV manufacturers—the broader strategy appears to be testing and dividing European unity. China has engaged in a carrot-and-stick tactic, ramping up green investments in Europe while simultaneously launching a retaliatory investigation into the EU’s pork and dairy industry. This move effectively targeted member states such as Spain, which in a U-turn called for the EU to "reconsider" its stance on tariffs. However, China’s divide-and-conquer strategy should not be overestimated; the fact that 17 member states did not vote in favour suggests that this may also reflect a deeper issue: the EU’s lack of a robust and cohesive industrial policy.
For Europe, unity is not only desirable; it is essential. Today's decision has set a critical precedent for the future; today is electric cars, and tomorrow it might be medical devices or artificial intelligence. A consensus-based approach should be paralleled with concrete measures to offset the costs of tougher competition with China or any potential retaliation from Beijing. This would help unity by shielding member states from potential economic coercion and boosting competitiveness in key European industries.
The benefits of a united Europe go beyond trade; unity enables the EU to act decisively and maintain its strategic autonomy on crucial economic or geopolitical challenges whether they come from China or any other actor. The strength of this cohesion and the tools in place will determine how effectively the EU can manage its relationship with China.
Elixabete Arrieta is a Programme Assistant in the Europe in the World Programme.
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