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flag European automakers buy Chinese EV carbon credits to avoid fines, sparking climate and fairness concerns.

flag European automakers are buying carbon credits from Chinese EV makers like BYD and Geely to avoid EU emissions fines due to slow EV adoption, drawing criticism for weakening climate goals. flag The credits allow companies such as Mercedes, Volvo, and Nissan to comply without accelerating their own electric transitions. flag Chinese firms reinvest the revenue to lower prices in Europe, boosting their market share. flag The EU extended compliance deadlines to 2027, easing pressure but raising concerns about long-term environmental effectiveness and the competitiveness of European industry.

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