Navigating Europe’s “De-Risking” Policy: Challenges and Strategies of Chinese New Energy Vehicles
Year: 2025
Type: article
Abstract: Driven by the global green transformation and carbon neutrality, new energy vehicle (NEV) industry has become the core area of international competition and cooperation. In recent years, the policy environment of the European NEV industry has changed significantly, especially under the influence of “De-Risking” policy, raising regulatory barriers while reshaping market dynamics. Chinese NEV enterprises are facing both challenges and opportunities in entering the European market. These shifts have driven up compliance and production costs, altered investment flows, and intensified supply chain restructuring. As a result, Chinese NEV manufacturers not only face higher entry costs, but also must navigate changing consumer demand and competitive pressures in an increasingly protectionist environment. This study focuses on two Chinese NEV companies, BYD and Geely, and explores their expansion strategies, supply chain localization, and technology cooperation models in the European market. The study finds that, despite the increased barriers to enter into the European market, Chinese firms can still maintain their competitive advantage by strengthening supply chain localization, deepening cooperation with European firms, and promoting technological innovation. This study helps to understand the evolution of European NEV industry policies and provides a reference for Chinese NEV enterprises to formulate internationalization strategies.
Author: Zhuofan Yu
Institution: Beijing Foreign Studies University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4410619602