That’s exactly what I fear may happen in Europe.
I don’t want to give a cent to European manufacturers because of the prices they want to subject us to, but I’m sure Europe will eventually do something about the Chinese allowing poor people to own cars.
European cars are expensive not just because the manufacturers are greedy, but also because we want them to pay their employees a proper living wage, human working hours, sick leave, a few weeks of vacation every year, healthcare... Those don't come for free.
Also you have to add that cars sold in Europe (regardless of manufacturer) require by law much more expensive extras compared to other countries.
But the labor costs of manufacturing are still tiny compared to material costs. If labor was free for European manufacturing that would only drop the price a token amount, not the £10,000+ that Chinese autos have over current cars.
So-called materials are manufactured, too, and usually not in China. Might be Poland or Hungary or Portugal though.