In this episode, we explore the growing presence of Chinese electric vehicle companies like BYD and Leapmotor in Europe, challenging the region’s automotive dominance despite efforts like EU tariffs. The story unfolds with Germany's industrial base grappling with the "second China shock," revealing how its overreliance on China has left it vulnerable in the face of shifting global dynamics. As Central and Eastern Europe finds itself caught between German supply chains and increasing Chinese influence, the episode delves into the consequences of this dependency and the tough choices facing these economies. We also explore how Europe is being forced to rethink its approach, shifting from a traditional market mindset to one that embraces system competitiveness, all while considering the potential creation of Special Economic Zones to safeguard the region’s future. It’s a story of shifting power, economic risks, and the evolving battle for industrial dominance in Europe. This episode belongs to the special series which is part of the collaboration between CHOICE, ECFR, and OSW.

Janka Oertel is director of the Asia programme and a senior policy fellow at the European Council on Foreign Relations. She previously worked as a senior fellow in the Asia programme at the German Marshall Fund of the United States’ Berlin office, where she focused on transatlantic China policy including on emerging technologies, Chinese foreign policy, and security in east Asia. Prior to joining the GMF, she served as a programme director at Körber Foundation’s Berlin office. She was also a visiting fellow at the German Institute for International and Security Affairs (SWP Berlin) and worked at United Nations Headquarters, New York, as a Carlo-Schmid fellow.

Jakub Jakóbowski Deputy Director of the Centre for Eastern Studies (OSW) and the head of the China Department, having previosly served as the coordinator of the „Connectivity in Eurasia” project and a Senior Fellow on China’s economy. Formerly a Taiwan Fellow at Soochow University in Taipei and a European China Policy Fellow at the Mercator Institute for China Studies (MERICS). He holds a PhD in political science from the Warsaw School of Economics (SGH), based on a dissertation on China’s foreign economic policy towards the Global South. He gives lectures at the Warsaw University and the Warsaw School of Economics. Member of a number of international projects and associations, including the Think Visegrad, China Observers in Central Europe (CHOICE) and the Horizon 2020 EU-STRAT project.

Read their paper Electric shock: The Chinese threat to Europe’s industrial heartland here!

Discussing Chinese EV Industry in Europe with Janka Oertel and Jakub Jakobowski

China Observers