The Chinese government has urged its automakers to limit investment in European countries that support new EU tariffs on imports of electric vehicles from China, which could reach 35.3%. According to Reuters, this decision comes after ten EU member states, including France and Italy, supported the introduction of permanent duties in response to the European Commission’s investigation into subsidies to Chinese manufacturers.
At a closed-door meeting on 10 October in Beijing, the Chinese government advised automakers to suspend investment in countries that support the new duties and focus on markets that voted against them, such as Germany, Hungary and Slovakia. BYD, the world’s largest electric car maker, is already building a plant in Hungary and is considering moving its European headquarters from the Netherlands to the country.
Beijing’s directive to automotive companies also calls for caution when investing in abstaining countries and forgoing individual negotiations with EU governments in favour of collective agreements.
