Redirected Chinese EV Exports: The Chilling Effect of the EU’s Anti-subsidy Investigation

Even before the announcement of possible provisional import duties on Chinese exports of EVs to the European Union, there is evidence that Chinese EV producers are redirecting exports to emerging markets—in particular to Brazil, Kyrgyzstan, and South Korea. Properly measured, China’s share of the fast-growing EU EV market—especially the share supplied by Chinese-owned firms—was never that large. This briefing note marhals evidence consistent with the classic "chilling effect" associated with investigations of so-called unfair trade practices. Other pertinent information that will contextualise the European Commission's imminent decision is presented as well.