The winners will be those who build bridges, not walls, says Gambardella.

MUNICH, Germany, Sept. 10 (Xinhua) -- Now is the right time for Chinese and European carmakers to strengthen cooperation, as the global automobile industry is undergoing a profound transformation, Luigi Gambardella, president of the Brussels-based international digital association ChinaEU, told Xinhua in an exclusive interview.

Gambardella, who stressed that the winners will be those who build bridges, not walls, noted that the rise of Chinese electric vehicles in Europe has been remarkable.

In July 2025, Chinese carmaker BYD reportedly once again outsold Tesla in the European market. Chinese brands such as NIO and SAIC have also become increasingly visible on European roads.

Some Chinese manufacturers have already invested in building factories or forming joint ventures in Europe, while companies including Xiaomi and Li Auto have chosen to establish R centers to prepare for future market expansion.

He pointed out that, on the one hand, Chinese carmakers have developed cost competitiveness through mastery of the entire value chain -- from battery innovation to large-scale assembly. On the other hand, their speed of innovation outpaces that of European, American, and Japanese companies, with new models reaching the market more quickly and with a leading position globally in battery technology.

"Chinese carmakers not only provide a price advantage but also appeal to younger European consumers by combining advanced technology with user-oriented design," Gambardella said.

In his view, uncertainty stemming from U.S. trade policy is weighing heavily on the European automotive industry and having far-reaching consequences. Under the newly concluded U.S.-European Union (EU) trade agreement, Washington now imposes a 15 percent tariff on cars and auto parts exported from the EU, up from the previous 2.5 percent.

"This is nothing short of a severe blow to European automakers and their supply chains," Gambardella warned.

The automotive industry is a pillar of Europe's economy, with countries such as Germany, France, and Italy heavily dependent on its vast supply chain, which directly or indirectly supports millions of jobs.

He cautioned that U.S. tariff policy will force European manufacturers either to absorb the higher costs themselves -- further squeezing profit margins -- or to pass them on to consumers, resulting in a loss of market share.

Even more concerning, the pressure will not be limited to carmakers alone. Upstream suppliers of components and downstream distributors will also be affected, creating a ripple effect across the entire ecosystem.

Gambardella emphasized that the European auto sector is already in the midst of a challenging transition toward electrification, autonomous driving, and decarbonization -- a shift that requires substantial investment in R and production.

Against the backdrop of an increasingly complex and volatile global environment, Gambardella called for deeper cooperation between Chinese and European automakers -- from manufacturing and battery development to charging networks and sustainable materials.