European Union require companies from China to place production in Europe

By Alimat Aliyeva

The European Union will require companies from China to set up production in Europe and share intellectual property as conditions for foreign companies to access the EU market, Azernews reports.

According to two EU officials, the new criteria will also allow foreign enterprises to receive grants as part of Brussels' green technology development strategy. The first such tender for subsidies, amounting to 1 billion euros and related to battery development, will be held in December. This pilot project, they said, "could be extended to other EU subsidy schemes."

Brussels' new demands "echo China's own rules, which require foreign companies to share intellectual property in exchange for access to the Chinese market," the publication notes. By tightening requirements towards China, the EU aims to "protect companies in the bloc that comply with strict environmental standards and strengthen their competitiveness," the article emphasizes.

In early July, Brussels imposed duties ranging from 17.4% to 37.6% on electric vehicles from China. As the European Commission informed, these duties were applied based on the results of a nine-month investigation into "illegal subsidies." The EU's highest executive body clarified that consultations with China on this issue "have intensified in recent months," and the European side expects to reach a settlement in accordance with World Trade Organization norms. On October 29, the European Commission approved the introduction of appropriate tariffs, up to 35.3%, which will be valid for five years.