On paper, the recent EU-China auto deal looks like a compromise Europe needed. In reality, it is a big mistake: short-term relief for European automakers versus long-term market dominance for China.

The EU protects the hybride car market in Europe in essence protecting the ‘old’ combustible engine technology at the same not incentivizing EU car makers to go all in on Electrical Vehicles.

The future however is 100% electric, and this is where the EU car makers will lose out as they remain stuck in their old ways.

This deal shows the pressure the EU is under to get short-term relief, while at the same time not thinking about the long-term consequences.

In essence they EU has no China strategy