China recently advised its electric vehicle (EV) makers to temporarily halt major investments in European countries that support new tariffs on Chinese-made EVs.
The guidance comes after the European Union (EU) imposed tariffs of up to 45.3% on Chinese EVs, aimed at protecting European automakers from low-priced imports.
Some EU countries, such as France, Poland and Italy support the tariffs, while others, including Germany, oppose them.
In response, China told its automakers such as BYD, SAIC, and Geely to be careful with their investments in countries that support these tariffs.
They are encouraged to consider countries that oppose tariffs such as Hungary, where BYD is already building factories.
The guidance is part of China's strategy to maintain strong export ties in Europe, which is an important market for Chinese EVs.
Chinese automakers are also advised to coordinate investment discussions, to strengthen their collective position.
With nearly half of China's EV exports going to Europe, this move is especially important because the United States and Canada already have tariffs on Chinese-made EVs.
