Lina Lund: Can Europe defend itself against "China"

This is a commentary text. The writer is responsible for the analysis and opinions in the text. If one wants to get a picture of what everyone is talking about in Brussels right now – how Europe is being flooded by price-dumped Chinese vehicles – one can visit a so-called ghost parking lot in some European port. As far as the eye can see, a sea of factory-new electric cars stretches out. There are no cars from Mercedes, Renault, or Fiat, but vehicles from Chinese manufacturers. They are shipped in such volumes that the cars do not reach the buyers before the next cargo ship docks at the quay. The ghost parking lots are a reminder that the time when "Made in China" was synonymous with cheap junk and pale copies is over. Nowadays, ultramodern cars, high-tech machinery, and batteries are flowing into the union. Little is said about a new "China shock." The EU's trade deficit is reaching an astonishing one billion euros per day. In Germany, the engine of European industry, old car factories are closing again and hundreds of thousands of industrial jobs are at stake across the union. – The analysis is crystal clear: the situation is unsustainable and we must move from analysis to action, says a high-ranking official in the EU Commission. China's strategy cannot be described as anything other than aggressive. Beijing dumps the state-sanctioned surplus onto us and manipulates its currency. Furthermore, Chinese coal power plants are running at full throttle and supplying the industry with dirty but cheap energy. But Europe's problem is also homegrown. When China launched the giant electric vehicle subsidy, German Volkswagen instead focused on manipulating emission tests for diesel cars. German engineers clung to yesterday's technology while competitors pulled ahead. Politics has not been much faster. When the EU finally agreed to prohibit the new sale of fossil-fuel-powered cars from 2035, it did not take long before the decision began to unravel after wild protests from the European car industry. At the same time, discussions are underway to water down the system of emission allowances – the EU's most important tool for the climate transition. It is easy to be shortsighted. But Brussels must now put all its effort into saving European industry. But one is forced to walk a difficult tightrope. – It is very easy to start a trade war, but much more difficult to end it, stated the powerful EU trade commissioner Maroš Šefčovič after a visit to Beijing last week. Šefčovič returned with a vague promise from his Chinese hosts to export fewer plug-in hybrids to Europe. But in the union's capitals, they are already discussing what the next step will be. Even the biggest free trade friends have begun to talk about protectionism. Without mentioning China by name, the heavyweights France and Germany have proposed that manufacturers acting on unfair terms should be excluded from the EU's internal market. Such a "kill switch" has made Beijing turn red and warn about "consequences." Will Europe go that far? Read more: Europe's electric car industry can be built with Chinese technology China strikes against Europe's automotive industry – here are ten cars that decide the battle Volvo gets help from Nvidia – aiming for self-driving