International Economic Law between Change and Continuity during Great Green Power Competition: The Case of EU-China EV Disputes

Great power competition has posed significant challenges to the international economic legal order, while the urgency of the climate crisis adds further pressure to the system. Against this backdrop, we examine the change and continuity of the functions of international trade and investment law through a case study of green industrial policy (GIP) competition between China and the EU in the electric vehicle (EV) sector. We analyze the measures adopted by China and the EU to support their EV industries, together with their justifications and defences under international economic law. While the institutional capacity of this legal system to resolve underlying disputes and induce compliance has weakened, its discursive power endures: existing rules and jurisprudence continue to structure governmental deliberations and decision-making, and these rules have been internalized domestically, reinforcing the system’s embeddedness. Thus, although governments are assuming more active roles in their economies and prompt adjustments in the legal system, the market-oriented logic underpinning international economic law is resilient in shaping interactions among States and firms. As governments experiment with different approaches to GIP while navigating intensifying geopolitical rivalries, a clearer understanding of both the shifts and continuities in international economic law – and their broader implications – becomes essential.