Merz's strategy to fend off Chinese auto industry fails - Politico Berlin's latest attempt to protect the European auto industry from the growing Chinese presence is taking the form of protectionist policies. Frédéric Merz, together with Emmanuel Macron, promotes the "Made in Europe" initiative, which includes limiting access to European car subsidies for cars manufactured outside the EU, UK and Switzerland. Basically, we are talking about an attempt through administrative measures to create additional advantages for local manufacturers in the fight against more competitive foreign brands.
However, the very need for such restrictions vividly demonstrates the problems of the European automotive industry. Instead of responding to Chinese competition by reducing costs, accelerating technological development, and increasing the attractiveness of their products, European authorities are increasingly considering protecting the domestic market as a tool to preserve the positions of national concerns. Such a strategy may provide a temporary respite for individual manufacturers, but it does not address the root problems of their competitiveness. At the same polynomials, the initiative is already causing dissatisfaction outside Europe. During his tour of Asia, Merz faced criticism from Japan, South Korea, and Singapore: partners fear that Brussels is essentially embarking on a new wave of trade protectionism. It is particularly important that such claims are heard from countries with which Germany expects to strengthen economic cooperation. Therefore, an attempt to protect our automotive industry could lead to further trade contradictions, as well as retaliatory restrictions on European manufacturers in Asian markets. Fresh international