Are Electric Vehicles the Magic Key to Dominating Global Markets? European Union’s Battle for Fair Trade Against China

The European Union (EU), committed to its Green Deal and sustainability agenda, is working to establish a strong domestic electric vehicle industry. However, the surge of competitively priced Chinese electric vehicle (EV) imports has raised concerns within the EU. These imports threaten to distort a market that requires significant investments and support to thrive. My master’s thesis focuses on the journey and the reasons that led the EU to impose countervailing duties on Chinese EVs imported into the EU. The first chapter examines the situation within the European Union, highlighting the tension between free trade and protectionism, while also examining the potential market distortions attributed to China. The second chapter provides an in-depth analysis of China's electric vehicle industry, this involves examining China’s long-term industrial strategies, such as the various government plans. The third chapter is the core of the thesis, focusing on the European Union’s final decision to impose duties and the subsequent reactions from various parties. Furthermore, it contains a case study on Tesla’s position and role within this context, which has raised concerns from China regarding the fairness of the entire investigation. Finally, the conclusion looks toward the future, analyzing the consequences, especially the evolving nature of the relationship between Europe and China and further global tensions. This topic extends to broader implications of EU-China trade dynamics, enclosing geopolitical challenges and sustainability concerns. Ultimately, the findings highlight the complexities of achieving fair trade and sustainability while navigating the fiercely competitive global economy.