Amid the controversy in China over Jaishankar’s trade remarks against China, External Affairs Minister S. Jaishankar has released a bombshell: China has asked its electric vehicle manufacturing companies to avoid investing in countries like India and Turkey, according to reports.
The Ministry of Commerce convened executives from more than a dozen electric vehicle companies in July to discuss the risks of setting up factories overseas under so-called “window guidance,” Bloomberg reported.
The ministry asked the electric car maker to better protect its assets and technology as it expands overseas, the officials said, confirming the meeting.
“Don’t build supply chains abroad”
In China, officials use window guidance to provide verbal or written instructions to companies on government policies. However, companies that do not comply with window guidance policy instructions will not be punished by national regulations and laws.
During the meeting, electric vehicle manufacturers were asked to focus on assembly production lines rather than going abroad to build supply chains and large-scale facilities. That is, key components of electric vehicles are produced in China and then shipped abroad for assembly and sales.
“We need countries like India and Türkiye…”
Regarding the meeting, a source told the South China Morning Post, “We were also asked not to invest in countries such as India and Turkey.”
The guidelines came as the country’s policymakers worry about growing tensions with some countries and a potential boycott of Chinese companies and products by local authorities and consumers, the sources said.
In addition, government officials are also worried that if electric vehicle factories are set up in these countries, these countries may “steal” China’s technology.
Jaishankar’s comments on trade with China spark controversy
Foreign Minister Subrahmanyam Jaishankar said at an event in New Delhi on August 31 that the whole world has common problems with China. He has said that many countries restrict Chinese investment in their countries for security reasons and India should do the same.
The External Affairs Minister further said, “Not only India, but the whole world is debating on different issues regarding China.” Even in Europe, China is at the centre of a major economic and national security debate.
China’s official newspaper Global Times was outraged by the foreign minister’s remarks and published several articles expressing its anger at the foreign minister.
On Monday, the Global Times, which had made personal comments about the foreign minister in an article and said his remarks clearly showed his anger and hatred towards China, deleted the article from its English website in light of the controversy it had sparked.
Follow us On Social Media Google News and Twitter/X