The EU will do what they did when the Japanese car industry was about to crush it, they'll slap tariffs on Chinese EV imports to protect Thier domestic industry until they're in a position to be competitive.
Yes, the US would never, ever...
Oh, wait! They did:
https://en.wikipedia.org/wiki/Voluntary_export_restraint#198...
https://www.jec.senate.gov/reports/99th%20Congress/The%20Leg...