EU opens new front with China over car chips

By Pieter Haeck | 07/17/2024 06:36 AM EDT

European officials are concerned subsidized Chinese firms are going after the bloc’s champions.

BRUSSELS — The European Union is eyeing action against Chinese rivals to protect one of Europe’s remaining tech successes: chips for its mighty car industry.

This could open up a new battleground in an escalating trade war with Beijing, adding to tension over EU import duties on Chinese electric vehicles.

The European Commission has been asking European semiconductor producers whether and how Chinese rivals might be undermining them, according to a questionnaire seen by POLITICO.

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Europe is still a leading force in manufacturing legacy chips for the automotive industry and household appliances. A May report showed that German Infineon, Dutch NXP and French-Italian STMicro are three of the five largest suppliers in the car chip market.

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