The 90th Paris Motor Show, running from Monday to Sunday, offers a unique window into global automotive trends. Despite the European Union's decision to impose steep anti-subsidy tariffs on Chinese electric vehicles, prominent Chinese automakers like BYD, Hongqi, and Leapmotor are actively showcasing their latest innovations at the event. This contrast is striking, demonstrating that European protectionism has not deterred Chinese auto companies from pursuing the European market or stifled the industry’s drive for cooperation and innovation.
As the world’s first auto exhibition, the Paris Motor Show—established in 1898—carries undeniable influence in the sector. Its emphasis this year on "immersion, innovation, and passion" reflects the critical role that innovation plays in shaping the future of the industry. The event highlights cutting-edge technologies, from electric and hybrid vehicles to hydrogen fuel cells and intelligent vehicle systems that transform cars into mobile smart terminals. Major players such as Renault, Peugeot, Volkswagen, BMW, Kia, Ford, and Tesla will all be present, showcasing their unique advancements alongside their Chinese counterparts.
China's "Intelligent Manufacturing" has already made a mark at previous industry events, including the 2022 Paris Motor Show and last year’s Munich Auto Show, where Chinese companies' growing strength in the new-energy vehicle (NEV) market was on full display. Although China is a relative newcomer to the automotive world—especially compared to established players like Europe, the US, and Japan—it has quickly gained ground, particularly in the NEV sector. Nevertheless, its market share in Western countries remains limited, and gaps persist in key technologies. Chinese participation in the Paris Motor Show underscores the desire to break through trade barriers and foster deeper global cooperation, challenging perceptions that they pose a "threat" to established markets.
The global automotive industry is engaged in an "innovation race," with Europe and the US appearing to overreact to competition from China. While the Paris Motor Show emphasizes innovation, European leaders also realize that maintaining a competitive edge requires technological progress rather than protectionism. In fact, China’s rise in the industry has been fueled by open competition and collaboration with foreign brands. The show’s open stance towards Chinese exhibitors highlights a consensus within the global auto sector: innovation thrives on international cooperation. Joint efforts, particularly in expanding the green industry, are also essential to meet global emission reduction targets.
Against this backdrop, the European Commission’s proposal to impose tariffs on Chinese electric vehicles seems counterproductive. While such tariffs will undoubtedly challenge Chinese automakers, they may also spur these companies to double down on innovation and brand development, eventually earning global recognition through superior products. On the other hand, European automakers are already grappling with the challenges of industry transformation. Imposing tariffs could raise costs for imported parts, creating supply chain disruptions and hindering Europe’s own technological progress. The EU must reconsider its development strategy, as protectionist barriers cannot keep pace with the global demand for collaboration and innovation in the automotive sector.
For Chinese car companies, participation in the Paris Motor Show underscores their commitment to the European market, a crucial region for their global ambitions. Likewise, the emphasis Chinese firms place on Europe highlights the strategic importance of the region itself. The ongoing dispute between China and the EU over the anti-subsidy investigation into Chinese EVs could be resolved through constructive dialogue, ultimately benefiting both sides. Consultations on this issue have already spanned over 20 days, with significant differences still remaining. China has expressed sincerity in negotiations but remains firm, urging the EU to meet them halfway.
In the early days of the automobile, European countries resisted change by enacting laws that prioritized horse-drawn carriages over cars—a historical irony now seen as laughable. Today, using protectionism to shield industries from competition seems like a modern-day equivalent of the "horse-drawn carriage protection law." Hopefully, the EU will realize this sooner rather than later. The automotive industries of China and Europe are highly complementary, and the potential for cooperation is vast. By working together, both sides could build a mutually beneficial future in this rapidly evolving industry.
