China backs automaker investment in Europe amid EU trade and local-content pressure
Minister signals support for Europe expansion
As reported by Reuters, citing China’s Commerce Ministry, Commerce Minister Wang Wentao says China supports investment by its automakers in Europe and wants auto-sector disputes handled through dialogue and consultation toward a mutually acceptable, constructive solution.
The ministry says Wang made the remarks during a meeting on Monday with Hildegard Mueller, head of the German Association of the Automotive Industry. It adds that China is committed to exploring solutions under the China-EU trade consultation mechanism based on principles of compliance, balance and non-discrimination.
Wang also says China does not want the European side to choose protectionism, restrict or close markets, or contribute to global markets becoming closed off from one another.
Trade tensions shape industry strategy
The comments come as Chinese automakers seek factory sites in Europe before the expected adoption of EU local-content manufacturing rules. They also come as China faces pressure to limit hybrid vehicle exports to Europe.
Beijing says it is closely monitoring EU moves affecting the number of hybrid cars China exports to the region. China-made plug-in hybrid cars are not covered by the bloc’s additional tariffs of up to 35.3% on battery-electric vehicles manufactured in China.
In a separate video call on Monday with Mercedes-Benz CEO Ola Kallenius, who also serves as president of the European Automobile Manufacturers’ Association, Wang says China welcomes European automakers, including Mercedes-Benz, to expand investment in China and deepen innovation partnerships with Chinese counterparts.
In our earlier coverage of the Trump–Xi Washington summit buildup, we outlined how markets were reacting to expectations that the U.S. and China would preserve and potentially extend their trade truce. We also noted that despite hopes for limited near-term deliverables, core frictions over tariffs, export controls, and technology policy remained unresolved and were set to shape the next phase of negotiations.
Source: Tradersunion