China has urged its automakers to halt significant investments in EU countries supporting new tariffs on Chinese EVs, aiming to leverage talks and mitigate the impact on exports.
China has instructed its automakers to stop significant investments in European nations that endorse new tariffs on Chinese electric vehicles (EVs). This directive follows the European Union’s implementation of tariffs up to 45.3%, a decision that has further polarized the bloc. Ten EU members supported these tariffs, while five opposed them, highlighting divisions within Europe.
During a recent meeting, Chinese automakers, including BYD and Geely, were urged to pause investment plans in supportive countries. Participants also received guidance to be cautious with investments in abstaining nations and were encouraged to focus on those opposing tariffs.
This strategic move indicates China’s effort to negotiate with the EU while safeguarding its vital EV export market, which represents over 40% of its exports. With the U.S. imposing 100% tariffs on Chinese EVs, any decline in European market exports could exacerbate the overcapacity issue faced by Chinese manufacturers.
Source : China tells carmakers to pause investment in EU countries backing EV tariffs, sources say
