The EU-China Chamber of Commerce submitted recommendations to the EC calling for relaxed investment restrictions in EV and battery sectors. German media reported that the EU is preparing anti-subsidy tariffs on Chinese-produced plug-in hybrid battery vehicles. Trade tensions in new energy vehicles between China and Europe continue to escalate.
EUCCC's Core Demands
The EU-China Chamber of Commerce formally submitted policy recommendations to the European Commission, with the core demand being relaxed investment restrictions in the electric vehicle and battery sectors. The backdrop is that the EU is strengthening trade protection of the NEV industry chain, preparing to impose anti-subsidy tariffs on Chinese-produced PHEVs.
The Chamber pointed out in its recommendations that excessive restrictions will harm both sides' interests. Chinese investments in battery technology, intelligent driving, and vehicle manufacturing have brought advanced technology, employment opportunities, and industrial chain improvements to the EU. Restriction measures will not enhance the competitiveness of EU domestic industries but may instead lead to technological decoupling and market segmentation.
Potential Impact of Anti-Subsidy Tariffs
German media reported that the EU is preparing anti-subsidy tariffs on Chinese-produced plug-in hybrid battery vehicles. If implemented, this policy would trigger multiple chain reactions:
Rising costs: Price competitiveness of Chinese PHEV models in Europe would be weakened
Reduced consumer choice: Fewer quality PHEV options for European consumers
Supply chain disruption: China-Europe battery supply chain cooperation faces interruption risks
Technology exchange barriers: Bilateral technical cooperation and talent mobility restricted
China-Europe EV Trade Status
China has become the world's largest NEV producer and exporter. In 2025, China's NEV exports reached 3.43 million units, up 70% year-over-year. Europe is one of the largest export destinations for Chinese NEVs.
Key Data:
2025 China NEV exports: 3.43 million units (+70% YoY)
Europe's share in China NEV exports: Major destination
China's global NEV market share: 68.4%
BYD 2026 Europe sales target: Continued high growth
Chinese OEMs' European Layout
BYD, SAIC, Chery, and Geely have established sales networks and production bases in Europe:
BYD: Hungary factory begins production in Q2 2026, 150,000 units annual capacity
SAIC MG: Sales channels established in UK, Germany, France, and more
Chery: Spanish joint venture factory conducts CKD assembly
Geely: Deepening European market through Volvo and Polestar brands
OEM | European Layout | 2026 Key Actions |
|---|---|---|
BYD | Hungary factory | Q2 production, 150K annual capacity |
SAIC MG | Multi-country sales network | Continued expansion |
Chery | Spanish joint venture factory | CKD assembly |
Geely | Volvo + Polestar | Brand deepening |
Recommendations and Industry Outlook
The EUCCC's recommendations reflect the reality of deep integration between China-Europe automotive industries. Against the backdrop of global energy transition, cooperation between China and Europe in NEV far exceeds competition. China has complete industrial chains and scale advantages, while Europe has brand premiums and technical accumulation — the complementarity is extremely strong.
For Chinese OEMs planning to enter the European market, close attention to policy changes and flexible export strategy adjustments are needed. Through EX1000.COM and similar platforms, real-time tracking of China-Europe trade policy dynamics and latest market access information can be obtained.
