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16.10.2026

Statement

Forget “Made in Europe.” Think “Made with Europe”

Kiel Institute President Prof. Dr. Moritz Schularick comments on the "Made in Europe" provisions of the Joint German-French Position on the Automotive Package, published on October 15, 2026 ahead of the EU leaders’ summit in Brussels:

"Germany and France are right that the EU needs a strategic response to Chinese competition. China’s dominance of the battery and EV supply chain reflects not only market competition but also state-supported expansion that has contributed to overcapacity, making it both important and legitimate for Europe to address the resulting market distortions. 

But the proposed approach misses the mark. A 'Made in Europe' rule defined as the EU-27 plus a handful of single-market neighbours is hitting important allies as hard as China. While the UK may opt in, Japan, South Korea, Canada and others are excluded. 

What Europe needs is not 'Made in Europe' but 'Made with Europe': an alliance of the middle powers willing to set common rules of origin and face China’s distortions together. That coalition is larger, more credible, and harder for Beijing to route around than a European club that excludes friends and allies. 

Containing China’s distortions is important and legitimate. But do it together with allies in a similar situation. Turn 'Made in Europe' into ‘Made with Europe’."

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