China EV adviser sees tech tie-ups resolving EU trade conflicts

CALB

18/09/2023 14:42

SHANGHAI, Sept 18 (Reuters) - China's auto industry
should seek solutions to trade conflicts by deepening ties with
European peers via technology partnerships, a Chinese policy
adviser said after the European Commission started a probe into
China's electric vehicle subsidies.
    The Chinese government, industrial associations and
companies should alleviate the impact on other markets as
Chinese EVs exports grow and seek win-win relationships with
local companies, Dong Yang, vice Chairman at China's top EV
think tank China EV100, wrote in an article published on his
social media Wechat account on Monday. 
    Dong, a former official at China's Ministry of Machinery,
one of the government bodies overseeing China's auto industry in
1990s, and state-owned automaker BAIC Group, also suggested
Chinese battery suppliers should deepen ties with European
companies and build a local battery supply chain in Europe. The
ministry was later turned into a federation.
    Meanwhile, European automakers can also leverage China's EV
technologies to accelerate their transition to electrification,
he added. 
    Dong's comments echoed China's EV industry leaders from
policy adviser and 'father of EVs' Wan Gang to the heads of
carmakers and battery giant, who all called for stronger global
cooperation and standardisation in policy to fasten the
technological transition at the Munich IAA conference earlier in
the month.
    A week later, European Commission President Ursula von der
Leyen accused China of flooding global markets with electric
cars at artificially low prices due to huge state subsidies and
started a probe that could result in punitive tariffs.
    Chinese EV maker Xpeng  9868.HK  in July struck a deal with
Volkswagen  VOWG_p.DE  to jointly build two new models based on
Xpeng's EV platform in China. Others, like LeapMotor  9863.HK 
are also seeking to license its EV technologies to foreign
partners.
    Chinese battery maker CATL  300750.SZ  has been ramping up
its German plant and is building another site in Hungary. 
    Its peer CALB  3931.HK  has been localising its supply
chains by offering technical support to local firms and
encouraging Chinese suppliers to set up plants in Europe, aiming
to source at least 70% of key materials it needs to produce
batteries in Europe locally by 2026.

 (Reporting by Zhang Yan, Brenda Goh; editing by David Evans)
 ((Zoey.Zhang@thomsonreuters.com;))