An inward-looking attitude that could spell the end of globalisation
2 min
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The Chinese holisitic approach
Could this series of crises have swept away the global economic organisation that had prevailed for many years? In the world’s second largest economy, which some people still like to describe as ‘developing’, the situation changed a long time ago, particularly in the automotive sector. State control, which is almost total, has made it possible to give a marked boost to electric cars, with preference given to national brands. Since 2010, China has accounted for 75% of direct subsidy policies implemented worldwide*
*CLIFA 2025 study (Comité de Liaison des Industries Fournisseurs de l’Automobile).
The new aggressive policy of the United States
In the world’s largest economy, with the return of Donald Trump to the presidency, the time has come to turn inward and launch an unprecedented legislative offensive. After abolishing the Inflation Reduction Act, enacted by Joe Biden and which favoured electric vehicles, the Big Beautiful Bill and considerably increased customs duties began to penalise anything that was not American-made.
A disorganised european response
Faced with the two behemoths of the sector, EU member states remain divided, lacking boldness and often defending their interests individually. Several countries, such as Germany, which has been particularly hard hit by US tariffs, are supporting their manufacturers and the market with their own resources. However, regulations and technical constraints are holding back the effectiveness of the measures adopted.
The Draghi report, calling for a European industrial action plan, did indeed see the light of day. But will its recommendations be acted upon? The European Union is struggling to come up with concrete, aligned, firm and clear responses that are equal to the challenges, and above all sustainable. In other words, the European car industry is in dire straits. And yet, with savings on the rise, accompanied by a shift towards production, Europe has an asset on which it could profitably build.