EU trade chief suggests tech transfers in exchange for Chinese EV investment
EU trade chief Maros Sefcovic has suggested ahead of an official visit to Beijing that technology transfer should be a condition of Chinese investment in Europe’s EV industry.
The bloc’s trade chief has said that if Chinese EV manufacturers and investors want to invest in the EU, they should be expected to include technology transfer as a condition of those investments.
In a speech to the European Parliament in Brussels, Sefcovic said he wanted to use his visit to China to discuss how direct investment from Chinese companies could benefit the EU’s EV technology and supply chains.
Sefcovic said, “My intention is to engage proactively on areas of divergence, raise our concerns related to the level playing field and the impact on the EU, which we cannot leave unaddressed, and seek resolution to concrete market access issues.”
The news comes as trade tensions rise between the EU and China, with the former launching a probe into the Chinese investment in BYD’s Hungarian EV manufacturing plant, which recently received up to four billion Euros in state subsidies directly from Beijing.
According to a report from the Financial Times, the probe could result in BYD being forced to sell its assets, reduce its manufacturing output, or repay the entire subsidy. It’s expected that Chinese Commerce Minister Wang Wentao will raise this issue as part of wide-ranging talks in Beijing at the end of the month.
The position of China in Europe’s EV market has long been a point of contention, with duties already being placed on EVs made in China to avoid the European market being flooded and its manufacturers being placed under undue pressure. Analysts believe moves against Chinese companies are part of the bloc’s strategy to encourage more Chinese EV battery and auto manufacturers to build factories within the EU.
Citing the problem, Sefcovic said, “The real problem is Chinese overcapacity, and this means the way forward should be that Europe and the US should cooperate together to tackle the root causes of the overcapacity.”
Despite these apparent mixed messages, the EU has made it clear that it still welcomes Chinese participation within the European EV market. Economists have speculated that the latest moves to strengthen relations with China are a hedge against incoming US sanctions under President Donald Trump and the looming specter of a potential trade war.
