EU sets tougher rules for Chinese firms

Brussels is planning new rules requiring Chinese firms to transfer technology and build factories in Europe to qualify for EU subsidies. These measures will apply to a €1 billion battery development scheme launching in December, potentially setting a precedent for other clean technology initiatives.

The proposals echo China’s own approach to foreign businesses, which compels them to share intellectual property to access its markets. The European Commission has also implemented tariffs on Chinese electric vehicles and stricter rules for hydrogen technology, aimed at reducing reliance on cheaper imports that undercut local manufacturers.

Chinese companies such as CATL and Envision Energy are already investing heavily in European facilities. However, domestic challenges persist, with Sweden’s Northvolt struggling financially as it attempts to scale up battery production. Batteries are critical for electric vehicles, making supply chains essential for Europe’s transition to greener technologies.

Critics warn that these tougher trade policies could disrupt EU climate goals by driving up costs for consumers. While the measures aim to support European industries, experts suggest they risk creating uncertainty and hindering innovation.