Fears of China’s growing dominance in the electric vehicle market played a significant, if subtle, role in the UK’s decision to relax its own EV sales rules. Jaguar Land Rover’s lobbying, in particular, brought this geopolitical tension to the forefront.
JLR’s argument that the ZEV mandate’s credit system forced UK-based firms to buy credits from and “subsidise” Chinese rivals was a powerful one. It tapped into a broader Western anxiety about being outcompeted and strategically dependent on China for the technologies of the future.
This “China angle” provided a non-environmental justification for slowing down. It allowed policymakers to frame a relaxation of the rules not as a concession on climate, but as a prudent move to protect the domestic industry from an unfair global playing field.
While JLR’s parent company is Indian, its status as an iconic British brand gave the argument particular resonance. The episode shows how climate policy is increasingly intertwined with issues of trade, national security, and the global economic rivalry between China and the West.
