Car Wars (Part 2) - Electric Vehicles, China and the EU

As the competition between the US and China over electric vehicles ramps up, the pressure has mounted on the EU to agree its own approach to the issue of Chinese EVs. While there are widespread concerns about the impact of Chinese EV imports and calls for the EU to protect its auto industry, others argue that the availability of affordable Chinese EVs and “green tech” more generally can help accelerate Europe’s own transition. This critical policy debate is taking place against a backdrop of concern about the global impact of Chinese industrial over-capacity.

Why is the EU concerned and is it right to be? How might the EV issue affect broader EU-China trade relations and what are its implications for EU-US trade relations? Lastly, what does the EV case teach us about how the EU should balance decarbonisation and industrial policy?

For a discussion of the US-China EV rivalry, listen to the previous episode of the AIG Global Trade Series 2024: “Car Wars (Part 1)” features Rem Korteweg in conversation with Scott Kennedy and Wendy Cutler.

The 2024 edition of the AIG Global Trade Series explores the theme of ‘Back to the Future: A New Era of Managed Trade?’   

Panellists:       
Elvire Fabry, Senior Research Fellow, Jacques Delors Institute 
Miguel Otero Iglesias, Senior Analyst, Elcano Royal Institute 

Moderator:     
Rem Korteweg, Senior Research Fellow, Clingendael Institute 

This podcast episode was recorded on 17 June 2024.   

Related content from GTS Contributors: 
Policy Paper | Shields Up: How China, Europe, Japan, and the United States shape the world through economic security 
Article | The economics and geopolitics of electric cars: a European Perspective

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The Global Trade Series is a collaboration between AIG and the following international organisations with leading expertise on global trade: the Aspen Institute Germany; CEBRI - the Brazilian Center for International Relations; Chatham House (UK); CITD - the Center on Inclusive Trade and Development at Georgetown University Law Center (US); the Clingendael Institute (The Netherlands); Elcano Royal Institute (Spain); ERIA – the Economic Research Institute for ASEAN and East Asia (Indonesia); ISPI - the Italian Institute for International Political Studies; the Jacques Delors Institute (France); RIETI - the Research Institute of Economy, Trade and Industry (Japan); and the St. Gallen Endowment for Prosperity through Trade (Switzerland).  The views and opinions expressed in this podcast series are those of the speakers and do not reflect the views, policy or position of American International Group Inc, or its subsidiaries or affiliates (AIG). Any content provided by the speakers in this podcase series is their opinion, and is not intended to malign any religion, ethnic group, club, organization, company, individual or group of individuals or anyone or anything. AIG makes no warranty or representations as to the accuracy, completeness, correctness or validity of any information provided during this podcast series, and AIG will not be liable for any errors, inaccuracies or omissions in the information provided during this podcast series or any damages, losses, liabilities, injuries resulting from or arising from the Podcast including your use of the Podcast.

What is AIG Global Trade Series?

Back to the Future: a New Era of Managed Trade?

Globalisation’s next chapter is being written, driven by concerns about supply chain risks. The global trade in goods is increasingly seen through a security prism in capitals around the world and governments are developing new policies to reduce unwanted dependencies, seek new sources of leverage and guarantee supplies. Trade links are being reordered as policymakers scramble to secure access to strategic materials and positions in global value chains. Meanwhile, geopolitical turbulence and climate ambitions are giving rise to industrial policies, sanctions and a growing use of subsidies.

From investment screening to quotas to export controls, policymakers are proposing an increasing number of tools and policies to steer trade and investment flows. But despite worries about protectionism and fragmentation, trade continues as the private sector manages risk by embracing diversification. Elections in the US, EU, Mexico, UK, Indonesia, India and elsewhere may also lead to a reordering of the global politics of trade. Has the global trade system entered an era of managed trade? What will it mean for regional approaches to trade, and what does it mean for multilateralism and the WTO? Ultimately, the main question could be: who is in the driving seat in this brave new world for trade?