MERICS Briefing: Deal or no deal: Should the EU strike an agreement with China’s EV makers?

Chinese electric vehicle (EV) manufacturers are reportedly seeking a deal with the EU to replace recently imposed import tariffs with voluntary price floors and export quotas. China’s Commerce Minister Wang Wentao will travel to Brussels next week for discussions with EU trade commissioner Vladis Dombrovskis. The negotiations are highly contentious: can Europe reach a deal that prevents escalation from Beijing while addressing market distortions – or should it firmly show resolve at the risk of economic retaliation? 

The MERICS Economics and Industry team has discussed this tricky question with gusto in the last few weeks and decided that it would be helpful to summarize key arguments for and against a deal in the new edition of the MERICS Insights. The debate also continued live in an exclusive online event on Friday, September 13, from 10:30-11:00 a.m. CEST.