Chinese automakers like BYD have notched impressive growth in Europe as consumers flock to their affordable electric-vehicles.
The European Union and China plunged into a spat over electric vehicles this week in a dispute that could create short-term catalysts for auto stocks—and may bode ill for diplomatic relations. But the EU has good reason to fear Chinese competition.
The dispute—in which Tesla , popular in both Europe and China, could benefit—has sparked a fresh source of short-term catalysts for auto stocks. Chinese names like Nio , XPeng , and BYD and European counterparts like Volkswagen , Mercedes-Benz , and Stellantis , have moved up and down this week in response to support from their respective camps.
Chen, for her part, has eyed a more integrated supply chain as being a factor behind the cost efficiency for Chinese manufacturers—though EU regulators may allege that government subsidies help keep prices low, too.
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