Dragon’s order to companies.keep this technology hidden lest India gets hold of it!

The world’s second largest economy is growing at a slow pace (China Economy Growth). Due to fears of recession and inflation, many companies are also migrating from here. Meanwhile, China has issued an order for companies in the electric vehicle sector (EV Sector). The report said that China’s Commerce Ministry held a meeting with more than a dozen vehicle manufacturing companies in July, in which instructions were given not to make any vehicle-related investment in India.

According to a Bloomberg report, this step has been taken by China to protect the technology of its electric vehicle (EV) industry and reduce regulatory risks during the global expansion of Chinese vehicle manufacturers. China has asked EV sector companies to focus on the safety of better EV technology by keeping the main production in China despite the increasing demand abroad.

Focus on exporting only EV parts- China
According to the report, Chinese EV companies have been encouraged to export knock-down kits. Knock-down kits mean vehicle parts made in China, which are then sent to foreign plants. This will also give Chinese EV companies control over the production process and also provide relief from tariffs imposed on manufactured

These guidelines come at a time when Chinese automakers are trying to globalise their operations to avoid tariffs, while they face stiff competition and slow sales in the domestic market.

This crisis can arise in front of China
Keeping production within China could hamper their expansion efforts and pose challenges for countries such as Europe, which are keen to attract Chinese investment to spur economic growth and job creation. It could also impact earnings for many companies.

For example, in Turkey BYD plans to build a factory with an annual capacity of 150,000 cars, while in Spain Chery Automobile has struck a deal with a local firm to reopen an old Nissan plant.

Let us tell you that this directive is not only applicable to India, but also to other countries like Turkey, where vehicle manufacturers will have to inform and take permission from China’s Ministry of Industry and Information Technology before investing.