China Tells Car Makers to Pause EU Investments Over EV Tariffs

Chinese automakers are being advised to press the brakes on major investments in European countries that have backed new tariffs on Chinese electric vehicles (EVs). This decision comes as a response to the European Union's (EU) recent imposition of tariffs, which can reach up to 45. 3%, following a year-long investigation. The tariffs have caused a rift within the EU, with ten countries, including France, Poland, and Italy, supporting the measures, while five, including Germany, opposed them, and 12 chose to abstain. In a private meeting held by China's Ministry of Commerce on October 10, automakers like BYD, SAIC, and Geely were instructed to halt their plans for significant asset investments, such as building factories, in the countries that voted in favor of the tariffs. The meeting also included representatives from foreign automakers, who were advised to be cautious about investments in countries that abstained from voting. Instead, they were encouraged to invest in the five EU countries that opposed the tariffs. This move by China underscores the complex political landscape surrounding international trade and highlights the potential repercussions of such decisions on business investments.