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China has called on its major car manufacturers to halt further investments in Europe. No Hungarian project is in danger, and the largest electric car manufacturer BYD may bring its European headquarters to Hungary, in addition to building a factory in Szeged (southern Hungary), Világgazdaság reports.
The Chinese Government has summoned the heads of its electric car manufacturers and asked them to halt investments in European countries that support punitive tariffs on electric vehicles made in China, according to multiple sources reported by Reuters news agency.
The European Union’s progressive tariffs of up to 45.3 percent came into force this week
after the majority of the EU agreed on it earlier this month. Ten Member States, including France, Poland, and Italy, voted in favor of the tariffs, while five voted against. The latter include Hungary and Germany, while twelve Member States abstained.
The Hungarian Government stated several times that it was a mistake to impose punitive tariffs on cars produced in China. However, Hungary could also benefit from the sanctions. As importing electric cars from China will be expensive, Chinese companies will have an interest in producing in the EU and thus avoiding the high tariffs. Battery factories are currently being built in Hungary, and the largest Chinese electric car manufacturer BYD is building a huge plant in Szeged.
Following the EU vote, the Beijing Ministry of Commerce summoned the CEOs of BYD, SAIC, Geely, and other car manufacturers. The Chinese government “encouraged” them to stop major investments in countries that voted in favor of imposing tariffs on their products. Beijing has also “asked” the CEOs to invest in EU countries that voted against the tariffs. These include Germany, Hungary, Malta, Slovenia, and Slovakia. This means that investments in Hungary are not at risk, as Hungary did not vote in favor of the tariffs on electric cars.
BYD could even move its European headquarters from the Netherlands to Hungary for cost reasons,
according to sources from Reuters news agency.
However, China’s retaliatory measures against the increased EU tariffs could take on new dimensions. So far, Beijing has only decided to impose import tariffs of 30-40 percent on famous national products from countries that voted in favor of the punitive measures, such as French cognac, according to the portal.
Via Világgazdaság; Featured image via Facebook/BYD Magyarország
