This study analyzes the cases of the EU and the U.S. imposing high tariffs on Chinese electric vehicles (EV), focusing on their respective relations with China. In particular, it seeks to demonstrate that the EU's actions are an extension of its “de-risking” strategy toward China. The EU's imposition of countervailing duties on Chinese electric vehicles is part of its de-risking strategy and is applied differently to companies based on the amount of subsidies they receive. This reflects the fact that European companies, including those in Germany, France and Italy, manufacture electric vehicles in China and that a significant portion of electric vehicles imported into the EU are manufactured by foreign companies. In addition, the intertwined supply chains between the EU and China, as well as the differing positions of EU member states, have influenced these actions. In contrast, the U.S. tariffs are imposed under Section 301 of the Trade Act and include high tariffs not only on electric vehicles, but also on related materials such as batteries and semiconductors, reflecting a decoupling approach. The intent is to completely block the entry of Chinese electric vehicles into the U.S. market and establish a domestic-centric EV supply chain. In conclusion, the cases of the EU and the U.S. imposing tariffs on Chinese electric vehicles illustrate that the concept of “de-risking” works in different ways within their respective policies toward China. The EU's measures can be understood as part of a limited de-risking strategy that takes into account the complexities of the supply chain. The U.S. approach, on the other hand, represents a more aggressive move toward decoupling.
Yoo‐Duk Kang (Mon,) studied this question.