China sees resolving EU trade conflicts, pushes for tech-tie-up

Following the European Commission's launch of an investigation into China's

electric vehicle

As Chinese EV exports increase, the Chinese government, business associations, and corporations should mitigate the effects on foreign markets and seek out mutually beneficial partnerships with local businesses. In an article posted on his WeChat account on Monday, Dong Yang, deputy chairman of China's top EV research tank China EV100, said.

Dong, a former employee of the Ministry of Machinery of China, one of the government agencies in charge of overseeing the country's automobile industry in the 1990s, and the state-owned automaker BAIC Group, also recommended that Chinese battery suppliers should strengthen their ties with European businesses and establish a local battery supply network in Europe. Later, the ministry became a federation.

In the meanwhile, he continued, "European manufacturers can use Chinese EV technologies to hasten their switch to electrification."

Dong's remarks echoed those made earlier this month at the Munich IAA conference by other leaders of the Chinese EV industry, including Wan Gang, the 'father of EVs' and a policy adviser, as well as the executives of major automakers and battery companies. All of these leaders called for greater international cooperation and policy standardisation to speed up the transition to new technologies.

A week later, Ursula von der Leyen, president of the European Commission, accused China of flooding the market with electric vehicles at falsely cheap costs because of significant state subsidies. She launched an investigation that might lead to punitive tariffs.

In July, Chinese EV manufacturer Xpeng and Volkswagen agreed to work together to produce two new vehicles in China on Xpeng's EV platform. LeapMotor, among others, is looking to license its electric vehicle innovations to overseas companies.

The German facility of the Chinese battery manufacturer CATL has been expanding, and a new site is being developed in Hungary.

In order to acquire at least 70% of the essential materials required to create batteries in Europe by 2026, its peer CALB has been localising its supply chains by encouraging Chinese suppliers to open factories there and providing technical help to local businesses.