[sgbuffett]

China EV industry is especially bad due to over production and over supply leading to price war and unsold vehicles.

Over investment was the result of artifical incentives by Chinese govt to grow the sector  through subsidies is likely to result in Eurozone retaliation to increase tariffs for China made EV as its own industry will suffer due to the investment misallocation in China.

Eurozone needs to minimise teh fallout from China as it will hurt its current weak economic further. Unfair subsidy system practised in China  to stimulate growth in green sectors undermines free and fair competition in global trade.