The European Union is planning to compel Chinese companies to transfer technology to European businesses in return for EU subsidies, Reuters news agency reported on Tuesday, citing two senior EU officials.
According to report, new criteria requiring Chinese businesses to have factories in Europe and share technological knowhow will be introduced when Brussels invites bids for €1bn of grants to develop batteries in December, according to two senior EU officials. The pilot could be rolled out to other EU subsidy schemes, they said.
The requirements, while at much smaller scale, echo China’s own regime, which pressures foreign companies into sharing their intellectual property in exchange for access to the Chinese market. The criteria could be subject to change ahead of the tender, officials said.
The plans represent part of a hardening stance from Europe towards China as it seeks to protect companies in the bloc — subject to strict environmental regulations — from being undercut by cheap and more polluting imports.
Last month, the European Commission confirmed tariffs of up to 35 per cent on Chinese electric vehicles, on top of an existing 10 per cent levy. It has also introduced stricter requirements for companies applying for hydrogen subsidies, decreeing that only 25 per cent of parts in the electrolysers used to make hydrogen can be sourced from China.
