Yes, I imagine that the EU automotive industry is substantially intertwined with the Chinese industry, with components trade and licensing agreements in both directions.
Wealthy Chinese really love their Mercedes cars too.
The Europeans may find that the blow-back is not worth the political points.
Here is the Chinese perspective on the proposed EV tariffs:
https://www.globaltimes.cn/page/202406/1315125.shtml
All IMO.
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