The European Union is investigating Chinese subsidies for electric vehicles. It sounds like the same old story, but it’s not. The reality is that this case is about an internal EU rivalry. Two implications follow. First, the EU would eventually derive a bigger political win by filing a complaint against the Biden administration’s Inflation Reduction Act. Second, because of the business model of its automakers, the EU will never be a stalwart ally of the U.S. against China when it comes to EVs. Last week, European Commission President Ursula von der Leyen set out the anti-subsidy case against China in...