China is requesting its car manufacturers to maintain cutting-edge EV technology within the country
Chinese electric vehicle companies are planning to establish their production facilities in various countries worldwide. In this context, the Chinese government has advised these companies to avoid transferring their core technologies when setting up production units in countries like India. Instead, they are instructed to manufacture the key components of electric vehicles in China and only assemble the final products in foreign countries.
China has taken a leading position in the global electric vehicle industry. Even renowned foreign companies like Tesla are bravely competing with Chinese firms. The situation is intense. Local Chinese electric vehicle manufacturers have already been expanding their businesses to other countries. In this context, the Chinese government has imposed some restrictions on their domestic electric vehicle companies. When setting up manufacturing units in various countries, especially India, it is crucial not to expose your trade secrets. This is particularly important in these regulations.
In July, the Commerce Ministry of China invited representatives from over ten vehicle manufacturing companies to attend a meeting. The main aim of this gathering was to ensure that the advanced electric vehicle technology developed in their country does not fall behind in other countries. During this discussion, the government provided some specific guidelines.
Chinese companies that set up vehicle manufacturing units in India are suggested to produce major car components in China and then send them to India. This advice is due to the possibility of reducing customs duty by assembling these components here.
The guidelines provided by the Chinese government are shaping up to be applicable to all nations worldwide, not just India, including countries like Turkey. Companies like BYD and Chery from China, holding significant positions in electric vehicle technology, are planning to establish production facilities in countries such as Spain, Thailand, and Hungary. While BYD is showing interest in setting up its production unit in India, the government’s final approval is still pending.
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