In the past, if foreign car manufacturers wanted to do business in China, they were effectively forced to enter into joint ventures with local manufacturers. However, as policies have evolved, it seems the EU is attempting to impose something similar.
EU officials plan to introduce new rules requiring Chinese companies to transfer intellectual property to European firms in exchange for support. This policy is expected to take effect in December and will apply to €1 billion (approximately $1.05 billion) in battery development incentives. Statements from two senior officials indicate that this scheme may be applied to other support programs as well.
However, the specifics are not set in stone and may change. In particular, this idea may make Chinese companies hesitant to seek incentives, as it would require them to share technology with European competitors. This could ultimately benefit European companies, as there may be less competition for funding.
It is unclear if this is what the decision-makers have in mind, but companies like CATL and Envision Energy have heavily invested in European facilities. It goes without saying that this move is likely to anger China and could prompt a response.
