Europe's Naivety About the China Export Shock Is Tragic

European Union carmakers like Volkswagen AG got their wish this week when a combustion-engine ban for 2035 onward was effectively abandoned. It was seen as too ambitious, too costly and a dream for Chinese rivals, whose electric-vehicle head start (powered by subsidies) has given them a 7% share of the continent’s autos market. Faced with a choice between climate leadership and protecting jobs, the EU chose the latter.

While it’s true that the ban failed to spark a true European EV boom, dumping it is nowhere near enough to secure the industry’s future. It won’t solve Chinese competition. Worse, ditching it sends a signal that carmakers can comfortably take their foot off the investment accelerator. That’s the wrong message.