Download pdf
Navigating Europe’s “De-Risking” Policy: Challenges and Strategies of Chinese New Energy Vehicles
- 1 German College, Beijing Foreign Studies University, Beijing, China
* Author to whom correspondence should be addressed.
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.
Keywords
new energy vehicle, “De-Risking” policy, supply chain
[1]. Liu, Y., and Kokko, A. (2013) Who does what in China’s new energy vehicle industry?. Energy policy, 57, 21-29.
[2]. International Council on Clean Transportation (2018) China’s New Energy Vehicle Mandate Policy (Final Rule). Retrieved from: https://theicct.org/sites/default/files/publications/China-NEV-mandate_ICCT-policy-update_20032018_vF-updated.pdf?utm_source=chatgpt.com
[3]. Ren, J. (2018) New energy vehicle in China for sustainable development: Analysis of success factors and strategic implications. Transportation Research Part D: Transport and Environment, 59, 268-288.
[4]. Poullikkas, A. (2015) Sustainable options for electric vehicle technologies. Renewable and Sustainable Energy Reviews, 41, 1277-1287.
[5]. Hu, X., Chang, S., Li, J., and Qin, Y. (2010) Energy for sustainable road transportation in China: Challenges, initiatives and policy implications. Energy, 35(11), 4289-4301.
[6]. European Commission. (2023) Critical Raw Materials Act. Retrieved from: https://single-market-economy.ec.europa.eu/sectors/raw-materials/areas-specific-interest/critical-raw-materials/critical-raw-materials-act_en.
[7]. Jerzyniak, T. (2024) The EU De‐Risking of Energy Dependencies: Towards a New Clean Energy Geopolitical Order?. Politics and Governance, 12(8285), 1-18.
[8]. Balcet, G., Wang, H., and Richet, X. (2012) Geely: a trajectory of catching up and asset-seeking multinational growth. International Journal of Automotive Technology and Management 19, 12(4), 360-375.
[9]. Yakob, R., Nakamura, H. R., and Strom, P. (2018) Chinese foreign acquisitions aimed for strategic asset-creation and innovation upgrading: The case of Geely and Volvo Cars. Technovation, 70, 59-72.
[10]. Wang, H., and Kimble, C. (2013) Innovation and leapfrogging in the Chinese automobile industry: examples from Geely, BYD, and Shifeng. Global Business and Organizational Excellence, 32(6), 6-17.
[11]. Hu, S., Liu, Z., Tan, Y., Cheng, X., Chen, Z., and Long, Z. (2022) The status quo and future trends of new energy vehicle power batteries in China—Analysis from policy perspective. Energy Reports, 8, 63-80.
[12]. Masiero, G., Ogasavara, M. H., Jussani, A. C., and Risso, M. L. (2016) Electric vehicles in China: BYD strategies and government subsidies. Revista de Administração e Inovação, 13(1), 3-11.
[13]. He, H., Sun, F., Wang, Z., Lin, C., Zhang, C., Xiong, R., Deng, J., Zhu, X., Xie, P., Zhang, S., Wei, Z., and Zhai, L. (2022) China’s battery electric vehicles lead the world: achievements in technology system architecture and technological breakthroughs. Green Energy and Intelligent Transportation, 1(1), 100020.
[14]. Shao, L., and Jin, S. (2020) Resilience assessment of the lithium supply chain in China under impact of new energy vehicles and supply interruption. Journal of cleaner production, 252, 119624.
[15]. Xia, Z., and Zhang, X. (2011) Strategic analysis of synergistic effect on M&A of Volvo car corporation by Geely Automobile. iBusiness, 3(1), 5-15.
Cite this article
Yu,Z. (2025). Navigating Europe’s “De-Risking” Policy: Challenges and Strategies of Chinese New Energy Vehicles. Lecture Notes in Education Psychology and Public Media,95,131-137.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 3rd International Conference on Global Politics and Socio-Humanities
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).