China’s commerce ministry unveiled proactive measures on Wednesday to bolster the new energy vehicle (NEV) industry’s ability to effectively counter foreign trade restrictions. In response to an ongoing European investigation into Chinese subsidies for the NEV sector, the guidelines encourage collaboration with overseas firms, the establishment of research and development (R&D) and after-sales service centers abroad, and closer cooperation with international partners to enhance supply chains.
Under the outlined measures, Chinese banks are urged to expand services for domestic and overseas automakers and their supply chains, including facilitating cross-border settlements in RMB. The ministry also aims to streamline export procedures for NEVs and batteries, aiming for increased efficiency and competitiveness in the global market.
China, having surpassed Japan as the world’s largest auto exporter in 2023, is facing heightened scrutiny and trade tensions. A European Commission probe into Chinese-made electric vehicles for potential subsidies and discussions in the United States about raising tariffs on certain Chinese goods, including electric vehicles, underline the challenges the industry is currently navigating.
As China’s influence in the global vehicle export market grows, the guidelines seek to position the NEV industry strategically amidst evolving trade dynamics, promoting innovation, collaboration, and adaptability.
