Keep EV tech at home, Beijing instructs Chinese automakers
China’s Ministry of Commerce told automakers that they shouldn’t make any auto-related investments in India in a bid to safeguard Chinese EV tech and lower regulatory risks, the Bloomberg report said.
China has instructed its automakers to ensure advanced EV technology stays in the country, according to a report by Bloomberg.
Beijing is strongly advising Chinese carmakers to export ‘knock-down’ kits to their overseas plants, which effectively means important parts of vehicles would be made domestically and then sent to their destination market for final assembly.
In a meeting in July, China’s Ministry of Commerce told automakers that they shouldn’t make any auto-related investments in India in a bid to safeguard Chinese EV tech and lower regulatory risks, the Bloomberg report said.
The move comes even as Chinese automakers build factories in many countries to dodge tariffs on Chinese exports.
Chinese firms like BYD and Chery Automobile are shoring up plans to build factories in countries like Spain, Thailand and Hungary.
Chinese carmakers wanting to invest in Turkey have to first notify the Ministry of Industry and Information Technology that oversees China’s EV industry, along with the Chinese embassy in Turkey.
BYD has reportedly agreed to build a USD 1 billion plant in Turkey, which may boost BYD’s access to the EU, since Turkey has a customs-union agreement with the bloc.
In Spain, Chery Automobile has a partnership with a local company to reopen a former Nissan plant that will assemble cars from partially “knocked down” kits.