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China has instructed its electric vehicle (EV) makers to avoid investing in India and instead focus on protecting advanced EV technology within China.
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Chinese automakers are encouraged to export knock-down kits for assembly in foreign plants, maintaining control over core production processes.
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This move aims to safeguard China’s EV industry know-how and mitigate regulatory risks as Chinese automakers expand globally.
China has imposed restrictions on its electric vehicle (EV) manufacturers, advising them against investing in India. This move is part of China’s efforts to protect its EV technology and mitigate risks as its automakers expand globally. In a meeting held in July, China’s Ministry of Commerce instructed over a dozen automakers to focus on keeping key production within China, despite growing overseas demand.
Chinese companies are instead encouraged to export knock-down kits, allowing them to maintain control over core production processes while avoiding tariffs on Chinese-made EVs. This approach enables automakers to expand globally while safeguarding their technology. However, this directive may hinder their expansion efforts and pose challenges for countries seeking Chinese investment.
Chinese automakers like BYD Co. and Chery Automobile Co. are pushing ahead with plans to build factories in countries like Spain, Thailand, and Hungary, but with a focus on keeping critical technology within China. This move reflects China’s efforts to balance its global expansion with the need to protect its EV industry’s know-how.
