Brussels –
The European Union faces a delicate balancing act as it prepares to raise taxes on Chinese electric cars to protect European industry while avoiding a U.S. confrontation with Beijing that could lead to a trade war.
Europe’s automotive sector is the jewel in its industrial crown – behind iconic brands from Mercedes to Ferrari – but it faces an existential threat from the impending end of combustion engines and China’s lead in the transition to electric driving.
When Brussels launched an investigation into Chinese subsidies for electric cars last year, officials said they wanted to put the brakes on what they said were unfair practices that were undermining European carmakers.
