The European Union is building an economic security alliance with Japan, South Korea and Britain to shield its car industry from a surge in Chinese vehicle imports, according to people familiar with the plans.
Vehicles from the three partner nations would receive preferential treatment under proposed "Buy European" procurement rules, while the European Commission is also weighing safeguard tariffs modelled on existing EU steel protections. The push follows a milestone in May when Chinese automakers outsold Japanese brands in Europe for the first time. Chinese-made plug-in hybrids have grown rapidly, reaching 60 percent of EU imports in the first quarter of this year, up from 37 percent in 2024.
Brussels has already moved on multiple fronts, having imposed anti-subsidy tariffs on Chinese battery-electric vehicles in 2024 and proposed the Industrial Accelerator Act to prioritise European-made strategic goods. With Spain emerging as a hub for Chinese auto manufacturing, lawmakers are seeking quotas on European-made components in vehicles assembled on the continent.