Dynamic Evolution of Electric Vehicle Trade Network between China and Europe
Keywords:
Dynamic evolution, electric vehicle, trade network, China, Europe
Abstract
China and Europe have promoted the development of electric vehicles to reduce carbon emissions and cope with climate change. In recent years, the sales share of Chinese electric vehicle brands in the European market has increased rapidly. Europe has become the largest export market for Chinese electric vehicles. However, the European Union implemented various temporary tariffs on Chinese electric vehicle brands in 2024, which posed a major challenge to the development of electric vehicle trade between China and Europe. The paper conducts a systematic examination of overall structural characteristics, node centrality metrics, core-periphery architecture and community detection of electric vehicle trade network between China and Europe from 2018 to 2022 by using social network analysis. The results indicate a general upward trend in tighter trade groups and increased connectivity efficiency within the network, while the network density and reciprocity display some fluctuations during this period. From a structural perspective, countries holding central positions in both centrality measures and core-periphery indicators show statistically significant convergence patterns in electric vehicle trade network between China and Europe. Moreover, there has formed different communities and undergone significant composition changes in electric vehicle trade network after 2020, highlighting the strengthening of connectivity within the trade network. This study has both theoretical and practical implications. It highlights the dynamic changes in electric vehicle trade network between China and Europe, and providing practical implications for Chinese policymakers and Chinese electric vehicle manufacturers through strategic frameworks to enhance bilateral cooperation, market adaptability, and sustainable trade reciprocity with European countries.
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References
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30. Rauch, J. E. (2001). Business and social networks in international trade. Journal of Economic Literature,39:1177-1203. https://doi.org/10.1257/jel.39.4.1177
31. Santos, G., & Davies, H. (2020).Incentives for quick penetration of electric vehicles in five European countries: Perceptions from experts and stakeholders. Transportation Research Part A: Policy and Practice, 137: 326-342. https://doi.org/10.1016/j.tra.2018.10.034
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35. Shen, L., Zhong, Z., Chen, C. Zhang, S., & Zhen, F. (2024). City network evolution characteristics of smart industry: Evidence from Yangtze River Delta, China. Chinese Geographical Science, 34: 829–848. https://doi.org/10.1007/s11769-024-1456-3
36. Smith, D. A., & White, D. R. (1992). Structure and dynamics of the global economy: Network analysis of international trade 1965–1980, Social Forces,70(4): 857-893. https://doi.org/10.1093/sf/70.4.857
37. Snyder, D., & Kick, E. L. (1979). Structural position in the world system and economic growth, 1955-1970: A multiple network analysis of transnational interactions. American Journal of Sociology, 84(5): 1096 - 1126. http://www.jstor.org/stable/2778218
38. Song, Z., Che, S., & Yang,Y. (2018).The trade network of the Belt and Road initiative and its topological relationship to the global trade network. Journal of Geographical Sciences, 28(9): 1249-1262. https://doi.org/10.1007/s11442-018-1523-8
39. Sun, N. H, Geng, Y., Hu, L., Shi, L., & Xu, T. (2018). Measuring China's new energy vehicle patents: A social network analysis approach. Energy, 153(4): 685-693. https://doi.org/10.1016/j.energy.2018.04.077
40. Van Wieringen, K.(2024). The future of European electric vehicles, https://www.europarl.europa.eu/RegData/etudes/IDAN/2024/762873/EPRS_ IDA(2024)762873_EN.pdf.
41. Voituriez, T., Wang Y., & Mathias L. L. (2019). Revising the“host country standard”principle: A step for China to align its overseas investment with the Paris Agreement. Climate Policy. 19(10):1205-1210. https://doi.org/10.1080/14693062.2019.1650702
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43. Yao, H., Yang, Y., & Wang, S. (2024). Network and mechanism of China’s new energy vehicle industry from the perspective of value chain. Journal of Geographical Sciences, 34(4): 779-803.
https://doi.org/10.1007/ s11442-024-2227-x.
44. Yang, Z., Algesheimer, R., & Tessone, C. (2016).A comparative analysis of community detection algorithms on artificial networks. Scientific Reports, 6:30750.https://doi.org/10.1038/srep30750
45. Yu, C. H., Wu, X., Zhang, D., Chen, S., & Zhao, J. (2021). Demand for green finance: Resolving financing constraints on green innovation in China. Energy Policy, 153:112255.
https://doi.org/10.1016/j.enpol.2021.112255
2. An, H., Zhong, W., Chen, Y., Li, H., & Gao, X. (2014). Features and evolution of international crude oil trade relationships: A trading based network analysis. Energy, 74(5): 254-259.
https://doi.org/10.1016/j.energy.2014.06.095
3. Andersen, T. (2023).Chinese EVs in Europe: A threat to European automakers, International Centre for Defence and Security,
https://icds.ee/en/chinese-evs-in- europe-a-threat-to-european-automakers/.
4. ARC. (2024).EU Implements tariffs on Chinese electric vehicles: Evaluating impact on market dynamics, https://arc-group.com/eu-tariffs-chinese-electric-vehicles/.
5. Boullenois, C., Kratz, A., & Goujon, R. (2023). Opening salvo: The EU's electric vehicle probe and what comes next, https://rhg.com/wp-content/uploads/ 2023/10/ Opening-Salvo-The-EUs-Electric-Vehicle-Probe-and-What-Comes-Next.pdf.
6. Busch, P., Pares, F., Chandra, M., Kendall, A., & Tal, G. (2024). Future of global electric vehicle supply chain: Exploring the impact of global trade on electric vehicle production and battery requirements. Transportation Research Record: Journal of the Transportation Research Board,2678(11): 1468–1482.
https:// doi.org/10.1177/03611981241244797
7. Cho, M., & Kim, Y. L. (2023). Do inter-firm networks sustain the resilience of regional industrial ecosystems? A network-based analysis of the South Korean automotive industry. Regional Studies, Regional Science, 10(1), 569–580.
https://doi.org/10.1080/21681376.2023.2205919
8. Dadush, U. (2024).Rippling out: Biden's tariffs on Chinese electric vehicles and their impact on Europe, Bruegel, https://www.wita.org/atp-research/ rippling-out.
9. Du, R., Dong, G., Tian, L.,Wang,Y., Liu,Y.,Wang, M., & Fang,G. (2016).A complex network perspective on features and evolution of world crude oil trade. Energy Procedia, 104:221–226.
https://doi.org/10.1016/j.egypro.2016.12.038
10. Duthoit, A. (2023). The Chinese challenge to the European automotive
industry, Allianz.
https://www.allianz.com/content/dam/onemarketing/azcom/ Allianz_ com/economic-research/publications/specials/en/2023/may/ 2023-05-09-Automobile.pdf.
11. Energy Institute. (2024). 73nd edition statistical review of world energy. https://www.energy.ox.ac.uk/wp-content/uploads/2024/09/ 4.-11.50am-Juliet -Davenport-SLIDES-SR-2024-launch-presentation-AGM.pdf.
12. European Commission. (2024).Commission investigation provisionally concludes that electric vehicle value chains in China benefit from unfair subsidies.
https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3231.
13. Fagiolo, G., Reyes, J. & Schiavo,S. (2009). World trade web: Topological properties,dynamics and evolution.Physical Review, 79:1-19. https://doi.org/10.1103/PhysRevE.79.036115
14. Garlaschelli, D., & Loffredo, M. I. (2005). Structure and evolution of the world trade network. Physica A: Statistical Mechanics and Its Applications, 355(1): 138-144.
https://doi.org/10.1016/j.physa.2005.02.075
15. Greif, A. (1989). Reputation and coalitions in medieval trade: Evidence on the Maghribi traders.The Journal of Economic History, 49:857~882. https://doi.org/10.1017/S0022050700009475
16. Hannah, R. (2020). Cars, planes, trains: where do CO₂ emissions from transport come from? https://ourworldindata.org/co2-emissions -from-transport.
17. Hu, X., & Pan, J. (2023). Analysis of trade influencing factors and trade potential of China's new energy behicles under carbon emission - Evidence from "Belt and Road" countries. Industrial Engineering and Innovation Management, 6(9):142-152.
https://doi.org/10.23977/ieim.2023.060920
18. IEA. (2023). Global EV Outlook 2023. https://iea.blob.core.windows.net/ assets/ dacf14d2-eabc-498a-8263-9f97fd5dc327/GEVO2023.pdf.
19. IEA. (2024). Global EV Outlook 2024. https://iea.blob.core.windows.net/ assets/ a9e3544b-0b12-4e15-b407-65f5c8ce1b5f/GlobalEVOutlook2024.pdf.
20. IISS. (2024).The EU’s approach to tariffs on Chinese electric vehicles Strategic Comments, 30(7): vii–ix. https://doi.org/10.1080/ 13567888. 2024.2424072
21. Ingeborgrud, L., & Ryghaug, M. (2019). The role of practical, cognitive and symbolic factors in the successful implementation of battery electric vehicles in Norway. Transportation Research Part A: Policy and Practice, 130: 507- 516.
https://doi.org/10.1016/j.tra.2019.09.045
22. Jackson, M.O., Rogers, B.W., & Zenou, Y. (2017). The economic consequences of social-network structure. Journal of Economic Literature, 1:49–95. https://doi.org/10.1257/jel.20150694.
23. Jiang, S., Deng, X., Liu, G., & Zhang, F. (2021).Climate change-induced economic impact assessment by parameterizing spatially heterogeneous CO2 distribution. Technological Forecasting and Social Change, 167:120668.
https://doi.org/ 10.1016/j.techfore.2021.120668
24. Kim, S., & Shin,E. (2002). A longitudinal analysis of globalization and regionalization in international trade: A social network approach. Social Forces.81:445-471. https://doi.org/ 10.1353/sof.2003.0014
25. Lusher, D., Koskinen, J., & Robins, G. (2013).Exponential random graph models for social networks: Theory, methods, and applications. Cambridge University Press: New York.
26. Martyn, L.(2024). Analysis: EU imposes tariffs on China – What it means & industry reaction,
https://www.evnewsdaily.com/2024/10/06/ analysis -eu-imposes- tariffs-on-china-what-it-means-industry-reaction/.
27. Münzel, C., Plötz, P., Sprei, F., & Gnann,T. (2019). How large is the effect of financial incentives on electric vehicle sales?–A global review and European analysis. Energy Economics, 84: 104493.
https://doi.org/10.1016/ j.eneco.2019.104493
28. Newman, M., Barabasi, A., & Watts, D. J. (2006). The structure and dynamics of networks.Princeton University Press.
29. Pavlínek, P. (2021). Relative positions of countries in the core-periphery structure of the European automotive industry. European Urban and Regional Studies, 29(1): 59–84. https://doi.org/10.1177/09697764211021882
30. Rauch, J. E. (2001). Business and social networks in international trade. Journal of Economic Literature,39:1177-1203. https://doi.org/10.1257/jel.39.4.1177
31. Santos, G., & Davies, H. (2020).Incentives for quick penetration of electric vehicles in five European countries: Perceptions from experts and stakeholders. Transportation Research Part A: Policy and Practice, 137: 326-342. https://doi.org/10.1016/j.tra.2018.10.034
32. Scott, J. (2000).Social network analysis: A handbook.Sage Publications Ltd.
33. Scott, J. (2011). Social network analysis: developments, advances,and prospects. Social Network Analysis and Mining, 1(1):21-26. https:// doi.org/10.1007/s13278-010-0012-6
34. Shao, L. G., Hu, J. Y., & Zhang, H. (2021). Evolution of global lithium competition network pattern and its influence factors. Resources Policy, 74: 102353. https:// doi.org/10.1016/j.resourpol.2021.102353
35. Shen, L., Zhong, Z., Chen, C. Zhang, S., & Zhen, F. (2024). City network evolution characteristics of smart industry: Evidence from Yangtze River Delta, China. Chinese Geographical Science, 34: 829–848. https://doi.org/10.1007/s11769-024-1456-3
36. Smith, D. A., & White, D. R. (1992). Structure and dynamics of the global economy: Network analysis of international trade 1965–1980, Social Forces,70(4): 857-893. https://doi.org/10.1093/sf/70.4.857
37. Snyder, D., & Kick, E. L. (1979). Structural position in the world system and economic growth, 1955-1970: A multiple network analysis of transnational interactions. American Journal of Sociology, 84(5): 1096 - 1126. http://www.jstor.org/stable/2778218
38. Song, Z., Che, S., & Yang,Y. (2018).The trade network of the Belt and Road initiative and its topological relationship to the global trade network. Journal of Geographical Sciences, 28(9): 1249-1262. https://doi.org/10.1007/s11442-018-1523-8
39. Sun, N. H, Geng, Y., Hu, L., Shi, L., & Xu, T. (2018). Measuring China's new energy vehicle patents: A social network analysis approach. Energy, 153(4): 685-693. https://doi.org/10.1016/j.energy.2018.04.077
40. Van Wieringen, K.(2024). The future of European electric vehicles, https://www.europarl.europa.eu/RegData/etudes/IDAN/2024/762873/EPRS_ IDA(2024)762873_EN.pdf.
41. Voituriez, T., Wang Y., & Mathias L. L. (2019). Revising the“host country standard”principle: A step for China to align its overseas investment with the Paris Agreement. Climate Policy. 19(10):1205-1210. https://doi.org/10.1080/14693062.2019.1650702
42. Wingender, P., Yao, J., Zymek, R., Carton, B.,Cerdeiro, D., & Weber, A. (2024). Europe’s shift to electric vehicles amid intensifying global competition. IMF Working Paper 24/218, https://www.imf.org/en/Publications/WP/ Issues/2024/10/11/Europes-Shift-to-EVs-Amid-Intensifying-Global-Competition-556285.
43. Yao, H., Yang, Y., & Wang, S. (2024). Network and mechanism of China’s new energy vehicle industry from the perspective of value chain. Journal of Geographical Sciences, 34(4): 779-803.
https://doi.org/10.1007/ s11442-024-2227-x.
44. Yang, Z., Algesheimer, R., & Tessone, C. (2016).A comparative analysis of community detection algorithms on artificial networks. Scientific Reports, 6:30750.https://doi.org/10.1038/srep30750
45. Yu, C. H., Wu, X., Zhang, D., Chen, S., & Zhao, J. (2021). Demand for green finance: Resolving financing constraints on green innovation in China. Energy Policy, 153:112255.
https://doi.org/10.1016/j.enpol.2021.112255
Published
2025-05-31
How to Cite
Yan, S., & Liao, Z. (2025). Dynamic Evolution of Electric Vehicle Trade Network between China and Europe. European Scientific Journal, ESJ, 21(13), 1. https://doi.org/10.19044/esj.2025.v21n13p1
Section
ESJ Social Sciences
Copyright (c) 2025 Shigang Yan, Zeng Liao
This work is licensed under a Creative Commons Attribution 4.0 International License.
