Analysis by Viktor Eszterhai and Péter Goreczky
Geopolitical tensions between Western countries and China are prompting the European Union to attempt to reduce China’s economic exposure. This poses a particularly serious challenge to the Hungarian government, whose economic policy cornerstone is to create a manufacturing base for the interconnected European and Asian electric car value chains. This paper seeks to answer the question how the European Union can realistically attempt to reduce the European electric car industry’s dependence on China by exploring mergers in the European electric car industry and the Chinese battery industry. The study concludes by discussing whether the Hungarian government should maintain its current economic policy in the future or whether it needs to reconsider it due to the high risks involved.
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