How could the EU's use of CBAM and Chinese EV competition affect BRICS?
BRICS may face diplomatic strain as EU protectionism targets key members The European Union's deployment of the Carbon Border Adjustment Mechanism (CBAM) and other protective tools, such as anti-dumping duties and FDI screening, is part of a broader strategy to counter Chinese economic practices and rebuild strategic autonomy. Since China is a core member of BRICS, these regulatory actions create significant trade friction between the EU and a major bloc member. This strategic competition risks straining the diplomatic cohesion of BRICS, which seeks to promote alternative global economic structures.
- Effect
- Mild negative
- How direct
- Brind's reasoning
- When
- Within months
- The story
- Still developing
How it reaches BRICS
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The European Union is utilizing protective measures, including CBAM, while Chinese brands intensify competition in the European electric vehicle market, reaching roughly 11 percent of the market. This is occurring alongside slowing Chinese foreign direct investment and BRI projects, which is raising debt risks in some Western Balkan states.
The full event1independent outlet -
As a major member of BRICS, China's economic and geopolitical relationship with the EU is central to the bloc's global positioning. The imposition of trade barriers and strategic competition by the EU risks creating diplomatic tension and challenging the bloc's collective economic agenda.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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association of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates
Everything about BRICS
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The facts so far
As reported. Each one links to where it comes from.
- The EU response combines protective tools (CBAM, Foreign Subsidies Regulation, anti-dumping duties, FDI screening) with industrial initiatives.eurasiareview.com
- Chinese EV brands captured approximately 11% of the European market in 2025.eurasiareview.com
- The EU and China are engaged in strategic competition, with the EC using regulatory tools to counter Chinese economic practices and market expansion.eurasiareview.com
Why it matters
BRICS is positioned as a major counter-narrative to Western-led economic and geopolitical structures. The bloc's ability to maintain internal cohesion and present a unified front on global trade rules is crucial to its strategic influence. If key members like China face increasing regulatory pressure from the EU, it could complicate the bloc's diplomatic efforts and its ability to promote alternative global economic models.
This dynamic is part of a wider trend of global supply chain fragmentation and rising protectionism. The EU's use of CBAM signals a shift toward prioritizing industrial resilience and strategic autonomy over free trade principles, a move that directly challenges the economic assumptions of many developing nations within the BRICS framework.
What we don't know yet
- Will BRICS members coordinate a unified diplomatic response to the EU's protectionist measures?
- How will the EU's CBAM implementation affect the trade flows of other BRICS members besides China?
What would change this answer
— Other considerations
Beyond this explainer
Questions worth asking
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About EU Reindustrialization
Given that the EU is prioritizing industrial resilience, how does the use of CBAM specifically support or accelerate reindustrialization efforts within the bloc?
Explore EU Reindustrialization
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Who else could feel it
Other possible ripples from the same event.
Reporting
- eurasiareview.comOct 1
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.