China Asks Its Carmakers to Keep Key EV Technology at Home. Avoid investing India and Turkey

[kankan326]

China has strongly advised its carmakers to make sure advanced electric vehicle technology stays in the country, people familiar with the matter said, even as they build factories around the world to escape punitive tariffs on Chinese exports.

Beijing is encouraging Chinese automakers to export so-called knock-down kits to their foreign plants, the people said, meaning key parts of a vehicle would be produced domestically and then sent for final assembly in their destination market.

The instructions come as companies from BYD Co. to Chery Automobile Co. firm up plans to build factories in Spain to Thailand and Hungary as their innovative and affordable EVs make inroads in foreign markets.

China’s Ministry of Commerce held a meeting in July with more than a dozen automakers, who were also told they shouldn’t make any auto-related investments in India, the people said asking not to be identified discussing matters that are private, in another attempt to safeguard the know-how of China’s EV industry and mitigate regulatory risks.

In addition, carmakers wanting to invest in Turkey should first notify the Ministry of Industry and Information Technology, which oversees China’s EV industry, and the local Chinese embassy in Turkey.

 

[Saudang]

It will be interesting to see if anyone respects Chinese IP and refrains from copying it, assuming it proves valuable. Given China's history of violating the IP of almost all international brands, it will be very difficult for them to protect their IP in foreign countries.

More importantly, many countries will likely make it punitively difficult for Chinese EV makers to set up plants without sharing their technologies. China should not forget how it treated Western car manufacturers when they entered the Chinese market.

 

[Menthol]

It will be interesting to see if anyone respects Chinese IP and refrains from copying it, assuming it proves valuable. Given China's history of violating the IP of almost all international brands, it will be very difficult for them to protect their IP in foreign countries.

More importantly, many countries will likely make it punitively difficult for Chinese EV makers to set up plants without sharing their technologies. China should not forget how it treated Western car manufacturers when they entered the Chinese market.

China can't, because it's being protected by international law.

 

[mulj]

China has strongly advised its carmakers to make sure advanced electric vehicle technology stays in the country, people familiar with the matter said, even as they build factories around the world to escape punitive tariffs on Chinese exports.

Beijing is encouraging Chinese automakers to export so-called knock-down kits to their foreign plants, the people said, meaning key parts of a vehicle would be produced domestically and then sent for final assembly in their destination market.

The instructions come as companies from BYD Co. to Chery Automobile Co. firm up plans to build factories in Spain to Thailand and Hungary as their innovative and affordable EVs make inroads in foreign markets.

China’s Ministry of Commerce held a meeting in July with more than a dozen automakers, who were also told they shouldn’t make any auto-related investments in India, the people said asking not to be identified discussing matters that are private, in another attempt to safeguard the know-how of China’s EV industry and mitigate regulatory risks.

In addition, carmakers wanting to invest in Turkey should first notify the Ministry of Industry and Information Technology, which oversees China’s EV industry, and the local Chinese embassy in Turkey.

BYD already invested in factory in Turkyie.

 

[Vikramaditya1]

Win win I guess. India is actively trying to prevent major Chinese investment in the sector by putting additional requirements like 'government clearance '.

 

[xiao]

看看是否有人尊重中国的知识产权并避免复制它，这将是一件有趣的事情，假设它被证明是有价值的。鉴于中国侵犯几乎所有国际品牌的知识产权的历史，他们在国外保护自己的知识产权将非常困难。

更重要的是，许多国家可能会使中国电动汽车制造商在不分享其技术的情况下建立工厂变得困难。中国不应忘记当西方汽车制造商进入中国市场时，它是如何对待他们的。

Turkey will not be restricted, and the construction of factories in Turkey will drive Turkey's employment and surrounding industrial chains to win over Turkey, and it can also bypass EU sanctions

 

[ety]

It will be interesting to see if anyone respects Chinese IP and refrains from copying it, assuming it proves valuable. Given China's history of violating the IP of almost all international brands, it will be very difficult for them to protect their IP in foreign countries.

More importantly, many countries will likely make it punitively difficult for Chinese EV makers to set up plants without sharing their technologies. China should not forget how it treated Western car manufacturers when they entered the Chinese market.

Treat what ? Only in your delusional people's minds sour of Chinese tech.

 

[ety]

China has strongly advised its carmakers to make sure advanced electric vehicle technology stays in the country, people familiar with the matter said, even as they build factories around the world to escape punitive tariffs on Chinese exports.

Beijing is encouraging Chinese automakers to export so-called knock-down kits to their foreign plants, the people said, meaning key parts of a vehicle would be produced domestically and then sent for final assembly in their destination market.

The instructions come as companies from BYD Co. to Chery Automobile Co. firm up plans to build factories in Spain to Thailand and Hungary as their innovative and affordable EVs make inroads in foreign markets.

China’s Ministry of Commerce held a meeting in July with more than a dozen automakers, who were also told they shouldn’t make any auto-related investments in India, the people said asking not to be identified discussing matters that are private, in another attempt to safeguard the know-how of China’s EV industry and mitigate regulatory risks.

In addition, carmakers wanting to invest in Turkey should first notify the Ministry of Industry and Information Technology, which oversees China’s EV industry, and the local Chinese embassy in Turkey.

Sensible cautions and decisions for Chinese EV tech esp regarding India. I don't know about plant in Spain, Chinese automobile association has stated that Chinese EV companies will not go to EU countries to set up EV factories that will vote in favor of raising tariffs on import Chinese EV.

 

[kankan326]

It will be interesting to see if anyone respects Chinese IP and refrains from copying it, assuming it proves valuable. Given China's history of violating the IP of almost all international brands, it will be very difficult for them to protect their IP in foreign countries.

More importantly, many countries will likely make it punitively difficult for Chinese EV makers to set up plants without sharing their technologies. China should not forget how it treated Western car manufacturers when they entered the Chinese market.

This is Indian way of thinking. They attribute China's technology success to China's dishonesty and steal. They believe India is so backward because of Indians' honesty.

 

[ety]

This is Indian way of thinking. They attribute China's technology success to China's dishonesty and steal. They believe India is so backward because of Indians' honesty.

They honest ? Lol. In their views, no country could surpass or challenge their masters.

 

[Indos]

It will be interesting to see if anyone respects Chinese IP and refrains from copying it, assuming it proves valuable. Given China's history of violating the IP of almost all international brands, it will be very difficult for them to protect their IP in foreign countries.

More importantly, many countries will likely make it punitively difficult for Chinese EV makers to set up plants without sharing their technologies. China should not forget how it treated Western car manufacturers when they entered the Chinese market.

Main secret on EV Industry is in EV battery and this is in the nickel refinery and the Battery cell production

Battery pack like investment in India is just assembling the battery cell into battery pack

 

[Yellow is Okay]

These factories will most likely function as simple assembly lines with low value-added processes, while critical components will continue to be manufactured in China. In some cases, if China decides to relocate more than just the assembly line, Chinese companies from within the supply chain will follow suit, moving alongside Chinese EV manufacturers. We’ve seen a similar pattern with Samsung for decades, where most of their supply chain is composed of Korean companies that set up operations in those respective countries. Local companies in those markets rarely get the chance to compete, let alone break into Samsung’s supply chain.

What makes India different is the size and potential of its domestic market. India’s leverage for ToT is significantly stronger, much like China’s was in the past. From my perspective, India’s approach is entirely rational and not at all unprecedented.

 

[Indos]

These factories will most likely function as simple assembly lines with low value-added processes, while critical components will continue to be manufactured in China. In some cases, if China decides to relocate more than just the assembly line, Chinese companies from within the supply chain will follow suit, moving alongside Chinese EV manufacturers. We’ve seen a similar pattern with Samsung for decades, where most of their supply chain is composed of Korean companies that set up operations in those respective countries. Local companies in those markets rarely get the chance to compete, let alone break into Samsung’s supply chain.

What makes India different is the size and potential of its domestic market. India’s leverage for ToT is significantly stronger, much like China’s was in the past. From my perspective, India’s approach is entirely rational and not at all unprecedented.

India automotive Industry is quite advance and they can produce parts as well, their automotive Industry still has benefit without making battery cell production. They will start in Battery pack (which is actually assembling battery cell)

The parts can be produced in India

This is Indonesian automotive parts producer for example

Astra is local companies and not the only local companies who produce automotive parts in Indonesia

 

[Yellow is Okay]

India automotive Industry is quite advance and they can produce parts as well, their automotive Industry still has benefit without making battery cell production. They will start in Battery pack (which is actually assembling battery cell)

The parts can be produced in India

This is Indonesian automotive parts for example

Astra is local companies and not the only local companies who produce automotive parts in Indonesia

I'm not debating India's position in the supply chain, just sharing my thoughts on the article. The Chinese undoubtedly know how to safeguard their production processes, but stopping factory setups in India isn’t the way they’ll do it. And if India demands technology transfer from China, that’s completely reasonable for a country like India.

 

[kankan326]

Win win I guess. India is actively trying to prevent major Chinese investment in the sector by putting additional requirements like 'government clearance '.

Without China's investment, India can say good-bye to EV industry now. There is no other option. Even Tesla can not survive without some Chinese technological support.

India always wants China's investment in EV. It wants copy the made-in-India phone route. Firstly it seduced Chinese phone makers to establish factories in India by offering favorable policies. Secondly it raised tariff to phone parts import. Which will force Chinese phone makers to build production chain in India. Lastly Indian government used all kinds of pretexts to fine Chinese phone makers. Robbed all profit the phone makers ever made in India. And forced them to sell the factories to Indian companies.