As the Electric Vehicle Industry Grows Globally, Beijing Wants Chinese EV Tech to Stay at Home

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Beijing’s directive comes as most major Chinese carmakers operating in other countries are looking to localize EV manufacturing to avoid tariffs.

Robotic arms on the assembly line at the Zhejiang Leapmotor Technology Co. production facility in Jinhua, Zhejiang province, China, on June 23, 2024.hina has strongly advised its carmakers to make sure advanced electric vehicle technology stays in the country, people familiar with the matter said, even as they build factories around the world to escape punitive tariffs on Chinese exports.

It could also come as a blow to those European nations wooing Chinese carmakers in the hopes their presence will bring jobs and a local economic boost. BYD is planning on building a factory in Turkey, for example, that’s expected to have an annual capacity of 150,000 cars and employ up to 5,000 people.

“How much of the value added is going to be created in the EU, how much of the know-how is going to be in the EU? Is it just an assembly plant or a car manufacturing plant? It’s quite a substantial difference,” Dombrovskis told the Financial Times last month.In Brazil, BYD and Great Wall Motor Co. have said explicitly they aim to increase the share of locally produced and locally sourced components in coming years.

 

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