EU takes a page from China with new tech transfer demand
Brussels will demand technology transfers from Chinese battery manufacturers who wish to receive EU subsidies, writes the "Financial Times." It notes that this is part of a community strategy to safeguard domestic industry from Chinese competition.
The British newspaper reports that this requirement will initially apply to investors seeking grants for battery manufacturing. However, according to EU sources, this system may be expanded to cover other areas.
The "FT" points out that this strategy mirrors Beijing's approach, which requires foreign companies to share their intellectual property with China as a condition for market access.
A range of tools
The newspaper highlights that these requirements will complement a suite of measures that Brussels has already implemented to bolster the resilience of the EU's green technology industry.
In October, the community imposed new tariffs on electric cars imported from China.
In September, it tightened requirements for green hydrogen producers seeking community subsidies. To qualify, the electrolyzers they use to produce fuel must contain no more than 25% Chinese components.
Initial results
The "FT" notes that this strategy is producing its first outcomes. Chinese CATL, the world's largest electric vehicle battery manufacturer, is constructing its first factories in the EU – in Hungary and Germany. Meanwhile, a Shanghai-based wind turbine manufacturer has announced investments in Spain and France. However, many European green technology companies are facing financial difficulties. One such company is the Swedish battery manufacturer Northvolt, which announced in October that its subsidiary, Northvolt Ett Expansion AB, filed for bankruptcy.
According to the "FT," if President-elect Donald Trump follows through on his pledge to impose 60% tariffs on Chinese imports, Beijing will redirect some exports intended for the USA to the EU. As the newspaper argues, this may, in turn, lead the EU to expand further its range of tools necessary to protect its industry from Chinese competition.
