The Chinese government has directed local automobile manufacturers to refrain from making automotive investments in India, aiming to protect its electric vehicle (EV) technology. During a July meeting, the Ministry of Commerce instructed automakers to restrict advanced EV features to the domestic market and instead export 'knock-down kits' for assembly abroad. This move is seen as an attempt to safeguard China's EV industry amid increasing global competition and regulatory risks. The directive could hinder the globalization efforts of Chinese automakers as they seek to establish manufacturing bases in regions facing tariffs on their products. Companies like BYD and Chery are planning facilities in countries such as Turkey and Spain, yet the guidelines may complicate these ambitions. The Chinese government emphasizes that investments in markets promoting trade barriers against Chinese vehicles should be approached with caution.