Summary of an article by Kliment Robev
In brief
During the European Football Championship, Kliment Robev uses the tournament as a starting point to look at another European battle — the car industry against Chinese makers of electric vehicles.
Key points
- The European Championship is also a “machine for billions”: in a France–England match there are players worth €2.75 billion on the pitch — more than Gambia’s GDP.
- Among the tournament’s main sponsors are Chinese companies — BYD supplies the electric cars — while European brands such as BMW, Mercedes and Volkswagen are absent.
- After the Japanese and Korean brands, it is China’s turn: imports of Chinese EVs into Europe have grown tenfold since 2020, and their average price is about 30% (around €20,000) below that of European rivals.
- The European Commission is imposing tariffs of up to almost 50% on some Chinese brands over the subsidies that let them undercut prices; BYD and Geely face additional duties of 17 to 20%.
- Robev warns of retaliation and a trade war — with Germany the biggest loser — and concludes that there are no winners in a war, and the bill is paid by the end consumer.
Context
Published on 5 July 2024, during the European Football Championship in Germany, as the EU introduced tariffs on Chinese electric vehicles.
Views reflect his position at the date of publication and are not investment advice. Regulatory information
