EU to demand technology transfers from Chinese companies

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New requirements will apply to batteries but could be expanded to other green sectors

Brussels is planning to force Chinese companies to transfer intellectual property to European businesses in return for EU subsidies as part of a tougher trade regime for clean technologies following the election of Donald Trump. New criteria requiring Chinese businesses to have factories in Europe and share technological knowhow will be first introduced into a tender for €1bn worth of grants to develop batteries in December, according to two senior EU officials.

“If we want to play along with Trump on some of his agenda then we need to decide what to do about China,” a senior EU diplomat said. But the move also comes amid deepening concern about the weakness of the EU’s economy and the ability of companies to meet ambitious climate targets without relying on cheap imports. Brussels has also introduced domestic production targets into legislation aimed at boosting clean technologies adopted in May.

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