Business
Beijing’s Warning to Chinese EV Makers: Avoid Overseas Investments in Countries like India and Turkey
Beijing is advising Chinese EV manufacturers to refrain from investing in nations such as India and Turkey. The global expansion efforts of these Chinese EV companies took a hit following this directive from Beijing encouraging them to steer clear from making investments in such countries.
In July, the Department of Trade gathered leaders from over twelve electric vehicle manufacturers for a meeting, referred to as "window guidance", to talk about the potential dangers of constructing factories overseas, as per Bloomberg's report.
A pair of industry insiders aware of the circumstances have verified that a meeting occurred. They stated that the ministry instructed automobile manufacturers to enhance the protection of their assets and technology as they intensify their global expansion efforts.
In mainland China, the government employs a method known as window guidance to verbally or in writing guide businesses on state policies. Typically, businesses that do not adhere to the instructions given through window guidance won't face penalties as per the nation's regulations and laws.
In the gathering, electric vehicle manufacturers were urged to prioritize setting up disassembly production lines – where crucial parts are manufactured locally before being transported globally to be assembled nearer to the consumer markets – instead of establishing supply chains and extensive facilities abroad.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.