IMO this is a tough one.
Because Chinese cars are selling in EU for about twice the amount they are sold in China!
So it doesn't seem to me they are dumping them, so the question is how China can make cars so much cheaper than we can?
We know they have incentives in China, but the tariffs were designed to compensate for that.
The Xiaomi SU7 is allegedly comparable to a Porsche Taycan. The SU7 even beat the Porsche in a speed test! But it cost less than a fifth in China.
So if they chose to export that to EU, they could sell a competitor to Porsche at less than half the cost!
One explanation may be that Porsche is one of the brands with the highest profit margins in the world.
Allegedly the competition in China is very tough, and there is speculation that only a few brands will survive the current price war.
That makes exports an obvious opportunity to actually make money.
As I see it, China is maybe expanding their price war to EU, and as is normal in such situations, some brands have to die before this ends.
This is normal capitalism 101, a principle we demanded China to follow to get access to our market.
But only now that we may become a victim we complain about it?
Obviously I hope EU car industry can go on and compete, but to expect any less from China with 1.3 billion citizens, than what happened when Japan became an industrial force, is very very naive. China is Japan times 10, except actually that one goes to 11!
So yes we do have to be careful and increase trade in a way that isn't so disruptive it destroys our own industries.