The last few years have seen growing political appetite for interventionist industrial policy in a shift away from free market policies. We expect a more protectionist trade environment in the medium-term as countries look to safeguard costly re-industrialisation strategies.     China’s EV exports rose 11.4% on-year to 708k in January-July, easing from last year’s 64% surge to 1.5m, on the back of growing resistance from Europe, as well as cooler demand growth. China exported almost 10% (9.6GWh) of its battery production in July, up from around 12% in 2023. Chinese OEMs are investing in building factories in key markets, namely the EU, or in those that offer an alternative supply chain route to key markets, such as Morocco. Rerouting products through third countries is another likely outcome. Chinese automakers are also looking to diversify their export markets. BYD’s top export markets now include Brazil, Thailand, Israel, Australia and Malaysia.