China's EV industry is investing heavily in Hungary giving it an additional mode of entry into the European market. As the EU attempts to protect European incumbent firms with the imposition of tariffs on EV imports from China, this investment creates a challenge for European policy makers.

The paper elaborates the foundations and functioning of global value chains, the importance of their analysis within the S3 context, in line with the existing RIS3 framework. A methodological approach to analysing a country's position in GVCs in terms of activities, flows and relationships is...