China Halts Auto Investments Over EU Tariffs

China has advised its automakers to pause significant investments in European countries supporting new tariffs on Chinese electric vehicles. The European Union recently implemented tariffs of up to 45.3%. China is encouraging companies to focus on countries against the tariff and avoid standalone negotiations.

China has officially informed its automakers to abstain from making hefty investments in European nations that favor additional tariffs on Chinese electric vehicles, according to sources familiar with the situation. This development is anticipated to deepen the existing chasm within Europe.

The European Union imposed a new tariff structure of up to 45.3% following a year-long inquiry that has fractured the bloc. Ten member states, including France, Poland, and Italy, supported the tariffs, whereas Germany and four others opposed, and 12 abstained.

During a meeting on October 10, led by the Ministry of Commerce, Chinese automotive giants like BYD, SAIC, and Geely were advised to halt major asset investments in countries backing the tariff proposal. These companies were urged to prioritize investment in nations that opposed the tariffs, sources reveal.

(With inputs from agencies.)