Europe Destroyed Its Auto Industry—China Did Not

Chinese electric vehicle sales in Europe reached a record high during the first five months of 2026. Chinese brands sold 171,800 battery-electric vehicles across the 18 largest Western European markets, raising their market share from 9.4% to 14.2% in one year. One out of every seven EVs sold in Western Europe now carries a Chinese brand, despite additional EU duties of up to 35.3% on top of the standard 10% automobile tariff.

Brussels claims China is “dumping” state-subsidized vehicles, and there is no question that Beijing supported its EV industry. Yet Europe subsidizes battery factories, charging stations, renewable energy, manufacturers, and the consumers purchasing these cars. Italy’s incentives temporarily reduced the Chinese Leapmotor T03 to as little as €5,000. The difference is that China used industrial policy to build an efficient supply chain, while Europe spent public money creating regulations, mandates, compliance departments, and carbon-accounting schemes.

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Source: https://www.armstrongeconomics.com/international-news/europes-current-economy/europe-destroyed-its-auto-industry-china-did-not/