The European Union (EU) will require Chinese companies to localize production in Europe and share intellectual ownership as conditions for foreign companies to enter the Community market, reported the Financial Times (FT) newspaper.
According to two EU officials, the new criteria allow foreign businesses to also receive grants as part of Brussels' green technology strategy. The first such auction for subsidies of 1 bln. EUR for battery development will be held in December. This pilot project, they say, “could be extended to other EU subsidy schemes.“
Brussels' new demands "reflect China's own rules that force foreign companies to share intellectual property in exchange for access to the Chinese market," the publication said. By tightening the requirements in relation to China, the EU seeks to “protect companies in the Union that are subject to strict environmental standards and strengthen their competitiveness”, the publication emphasizes.
In early July, Brussels imposed tariffs ranging from 17.4% to 37.6% on electric vehicles from China. As reported by the European Commission, they were implemented based on the results of a nine-month investigation to combat “illegal subsidies”. The EU's top executive body specified that consultations with China on this topic “have intensified in recent months” and the European side expects to reach an agreement in accordance with the norms of the World Trade Organization. On October 29, the European Commission approved the introduction of the corresponding duties of up to 35.3%, which will be in force for five years.