EU Requires Chinese Firms to Transfer Technology

The European Union is set to impose new regulations requiring Chinese companies to establish production facilities in Europe and share technology in exchange for access to EU subsidies, particularly targeting a €1 billion battery development initiative launching in December. This policy mirrors China's own practices that compel foreign firms to transfer intellectual property for market access, aiming to bolster EU domestic industries and advance clean energy objectives. In addition to these requirements, the EU has already implemented tariffs ranging from 17.4% to 37.6% on Chinese electric vehicles to protect local manufacturers. Critics warn that such trade barriers could disrupt the EU's climate goals by increasing costs for consumers and stifling innovation. The evolving trade strategy also reflects concerns over cheaper, environmentally harmful imports from China, amid rising geopolitical tensions and potential pressure from the incoming US administration to adopt stricter trade measures. The EU's approach is seen as a significant shift towards protecting its market while navigating complex international trade dynamics.