The Expansion of Chinese Automakers into the European Market as a Potential Political and Economic Threat

Electromobility, as a trend partially driven by regulation, is opening the door for new players to enter the automotive industry. Whereas traditional European brands faced limited competition in the era of internal combustion engines, the electric vehicle segment is far more balanced and any factor with the potential to shift the dynamics of the industry can prove decisive, whether it's regulation, state support, or import conditions. Given that the growing presence of Chinese competitors in the European market has recently become a subject of discussion at the EU level, this thesis concurrently examines and analyzes the tools of the EU’s foreign policy towards the People’s Republic of China (PRC) in the automotive sector. Its aim is to identify the EU’s arguments for and against adopting a protectionist policy toward the PRC in this industry. The analysis employs the European Commission’s Impact Assessment methodology and is grounded in the theoretical framework of Economic Statecraft. Applying this methodology and theoretical approach to the issue of China’s expansion of BEVs into the European market has allowed to formulate four model scenarios outlining possible impacts on the EU across political-economic, social, and environmental dimensions. A moderate protectionist policy embedded within a legislative framework does not conflict with either the general or specific objectives of the European Union and offers the most appropriate response to potential strategic shifts on the part of the PRC.