SHANGHAI -China has told its automakers to halt big investment in European countries that support extra tariffs on Chinese-built electric vehicles, two people briefed about the matter said, a move likely to further divide Europe.
Geely declined to comment. SAIC, BYD and the commerce ministry did not immediately reply to requests for comment. Given 100% tariffs on Chinese-made EVs in the United States and Canada, a drop in EV exports to Europe would risk deepening overcapacity Chinese automakers face in their home market.During a visit to China by Spanish Prime Minister Pedro Sanchez last month, a Chinese company agreed to build a $1 billion plant in Spain to make machinery used for hydrogen production. Spain was one of the 12 EU states that abstained.
An aide to France's junior trade minister Sophie Primas said they had no comment to make ahead of her trip to China next week. BYD is building a plant in Hungary, which voted against the tariffs. The Chinese EV giant has also been considering relocating its European headquarters from the Netherlands to Hungary due to cost concerns, two separate people with knowledge of the matter said.