AVERE - The European Association for Electromobility’s Post

Europe’s Energy Crisis: A Tale of Missed Warnings  The headlines scream about Chinese electric vehicles being “too cheap.”   Meanwhile, factories and businesses across Europe are shutting down because energy prices have skyrocketed.  But here’s the twist:   European companies have been in China since the 1980s.   They’ve witnessed firsthand the rapid rise of Chinese manufacturing.  So how did we get here?   Did they not see this shift coming?   Or did they simply choose not to believe it?  Either way, the result is the same.   A continent struggling to keep up, caught off guard by a revolution decades in the making.  In today’s world, adaptability isn’t a luxury—it’s survival.   The question is: Will Europe rise to the challenge or repeat the cycle of missed opportunities?  Let’s discuss 👇   Do you think Europe can still compete on the global stage?  P.S. If you’ve seen this dynamic play out in other industries, I’d love to hear your thoughts.

News of this week: - EU's anti-subsidy investigation into Chinese EV's: China has expressed its willingness to engage in sincere dialogue and consultations with the European Union (EU), urging Germany to advocate for a cooperative approach within the EU. German Vice Chancellor Robert Habeck expressed concern that the EU's anti-subsidy investigation into Chinese EV's could harm Europe's green transition and consumer interests. #EV's #ChinaBusiness #SustainableGrowth #EUTrade - Direct flights between China and the Czech Republic have resumed, with Hainan Airlines now offering three weekly flights between Beijing and Prague. This year marks the 75th anniversary of diplomatic relations between the two countries, and the renewed service aims to boost tourism and business exchanges. #ChinaBusiness #CzechRepublic - Foreign companies are increasingly investing in China. In January, Audi launched pre-mass production of EV's in China. In March, Mercedes-Benz and BMW formed a joint venture in Beijing to build supercharging stations. ZEISS opened its largest Quality Centre of Excellence in Dongguan. Surveys show rising confidence among German and American businesses, with many planning to increase investments. PepsiCo recently broke ground on a new food production base in Xi'an. #ChinaBusiness #ForeignInvestment #Audi #MercedesBenz #BMW #ZEISS #PepsiCo

Another funny but dramatic story about European funding: 1. European policy makers are aiming to boost European sovereignty and therefore decrease the reliance on offshore (mainly Asian) manufacturing and supply chains. 2. Policy makers define and set up funds and initiatives such as RePowerEU, Horizon Europe, NetGenerationEU, etc. to boost a paradigm change. 3. Researchers from one of the biggest European research centers found a spin-off to manufacture [product] in Europe while dramatically reducing the need for some scarce and expensive materials. 4. The project is awarded several national grants and is submitted to the European Commission 5. The EIC (European Innovation Council) approves the project in Step 1 and Step 2. 6. The company travels to Brussels to be interviewed by the EIC jury. 7. The jury asks many questions about the business and its feasibility against Chinese competitors. 8. The project is rejected because the market is "currently very limited and dominated by Chinese manufacturers". Yes, this is not a joke. 9. The company is negotiating with investors in China. To be continued… #horizoneurope #eic #EU #innovation

The Mario Draghi report on #EuropeanCompetitiveness recently published has already been misquoted by some for whom a total dependency from China is of no concern (as heard in @EUPVSEC2024). The report doesn't mention anywhere that Europe should abandon clean tech manufacturing. It says: "Industries where the EU has a strategic interest in ensuring that European companies retain relevant know-how and manufacturing capacity, allowing production to be ramped up in the event of geopolitical tensions. Here the EU should aim to increase the long-term “bankability” of new investments in Europe, for instance by applying local-content requirements, and to ensure a minimum level of technological sovereignty". And if challenges are numerous, the report also paves the way for smarter, integration, cost-oriented incentives in order to compete with the US and IN for local manufacturing.

What purpose do these studies actually serve? Innovation is inherently complex, and overlooking important local material conditions and cultural differences that influence it does not help. Are there valuable lessons to be learnt from these rankings, or do they primarily obscure rather than illuminate? Any enlightening comments would be appreciated.

Well, results of this kind of analysis always depends on the factors that are taken as criteria. However article presents interesting combination of leaders and showcase a nuanced picture of global innovation dynamics, revealing that both smaller nations and developing countries can contribute meaningfully to innovation.

The 2024 Global Innovation Index (GII), recently highlighted by The Economist, informs discussions on the global innovation landscape, providing a comprehensive view of the innovation performance of 133 economies worldwide and offering insights in the future of innovation-driven growth. The GII tracks a diverse set of indicators – from R&D investment and high-tech exports to patents and scientific publications – serving as a robust tool to assess innovation performance worldwide. Learn more and view the full rankings at www.wipo.int/gii #GlobalInnovationIndex #WIPO #Innovation #GII2024

In what seems to be a significant shift in strategy, Europe is now interested to launch new rules requesting Chinese investors to potentially be transferring some of their technological competencies —especially in green energy—to gain access to the old continent. Context: Since 1979 foreign investment were require to transfer technological expertise in order to gain market access. Drawbacks in the automotive industry were that core technologies weren't always transferred and Chinese OEM ended up with a high level dependency towards Western engine and gearbox technology. Achievement: China made huge advancements towards its green technologies backed by a dominant supply chain in its favor replacing their dependency, with a simpler and efficient electric engine framework. Result: Is Europe focus on green energy tech enough to secure long-term competitiveness? Or will China early lead in software driven vehicle and scalable production technology pose a new threat? What do you think? How can Europe find the right balance towards fostering innovation and safeguarding its competitive advantage?

Today, we stand at a critical juncture for #Europe. Our global role and our way of life face mounting challenges - from economic shifts to geopolitical instability. To safeguard our future, we must prioritize three pillars: innovation, competitiveness, and stability. First, innovation. There is an urgent need for Europe to close the innovation gap with other global leaders. Our research and development spending remains well below that of the United States and China, directly impacting our technological sovereignty. By increasing R&D investments, we can move Europe closer to the forefront of clean energy, digital technologies, and artificial intelligence. #Innovation is not just about growth; it’s about securing our independence in critical sectors. Next, competitiveness. Fragmented regulations and barriers within our Single Market put European businesses at a disadvantage. If we address these hurdles, we not only strengthen our economic position but also protect European jobs and ensure that our industries can compete globally. #Competitiveness is crucial not only for economic vitality but also for our resilience in the face of global disruptions. Finally, stability. Without cohesive, strategic investments, Europe risks becoming a follower rather than a leader on the world stage. #Stability is essential to preserving our democratic values and reinforcing a rules-based world order. By prioritizing a stable, united Europe, we ensure that we can act as a beacon of cooperation and uphold the norms that protect peace and human rights globally. The path forward is clear: we must invest in innovation, remove barriers to competitiveness, and safeguard our stability. By doing so, we defend not only our economy but our principles and our role in the world. #makeeugreatagain #mega #europe #europa