According to Reuters: "European governments may be wary of budget Chinese electric vehicles flooding their markets but they're also fiercely competing for a share of the manufacturing investment and jobs the new competitors bring.
While the European Union investigates China's auto subsidies and considers tariffs on imports, national governments across the bloc are dangling their own incentives to attract Chinese automakers looking to build European factories."
At the EU level, China is under investigation for using government subsidies in EVs, and considering tariffs. China has 4% of the European car market, but the article didn't mention what the share of the EV market is. Whatever the shares, they are expected to grow, unless the EU uses trade barriers to lower Chinese imports. But if China manufactures in Europe, and invests in land, labour, and machinery and equipment in Europe, the Chinese may have more favourable trade terms with Europe.
According to Reuters: "Chinese automakers may find labour costs in Northern Europe too high for competitive production, Di Loreto said, whereas further south, Italy or Spain offer a balance of lower labour costs and relatively high manufacturing standards – particularly important for premium vehicles.
For lower-cost vehicles, Di Loreto said, attractive locations include Eastern Europe and Turkey, which currently produces around 1.5 million cars annually, mostly for the EU, and has held talks with BYD, Chery, SAIC and Great Wall."
The poorer countries in Europe need foreign investment the most, and are also the most attractive to Chinese automotive companies. This is a win-win situation. Greater industry linkages between Europe and China, will benefit China the most. China needs friends, especially in the West. And investing in eastern and southern Europe may be a good move for China, economically and politically.
https://old.reddit.com/r/economy/comments/1dcjh0e/europes_policies_on_chinese_evs_vary_are_not/
by fool49