The European Union will provide grants to Chinese companies for battery development, provided they transfer rights to intellectual property and establish factories in Europe, reports the Financial Times, citing two high-ranking EU officials.
New conditions are expected to be introduced in December when applications for grants totaling EUR 1 billion will begin. These could also be extended to other European subsidy programs.
Chinese authorities are implementing a similar policy, requiring foreign companies to share technological know-how in exchange for market access, notes the FT.
Meanwhile, Europe aims to protect its businesses from competitors offering cheaper products. Last month, the European Commission approved additional tariffs of up to 35% on imports of Chinese electric vehicles. The EC has also tightened requirements for applicants seeking "hydrogen" subsidies, limiting the share of Chinese components in electrolysis plants for hydrogen production to 25%.
Meanwhile, U.S. President-elect Donald Trump, according to sources close to him, will push for the European Union to follow his lead and impose additional restrictions on Chinese goods and investments.
If Trump implements the promised 60% tariffs on Chinese products, Beijing will likely have to redirect them to other regions, such as the EU, which in turn will try to limit their flow, the newspaper writes.
However, the state of the EU's economy and the ability of businesses to meet the climate goals set by its legislation without the aid of cheap imports are increasingly in doubt.