EU to demand technology transfers from Chinese companies

Elisabetta Cornago, senior research fellow at the Centre for European Reform think-tank, said that the Commission was “trying to find plenty of ideas” to shore up its trade defences “against a possible flood or redirection of Chinese trade flows towards Europe”.

Cornago warned that a tougher stance against Chinese components could backfire on the EU’s decarbonisation efforts. “You are temporarily putting a trade protection shaped like innovation support . . . to support your industry but that isn’t bringing down prices for consumers.” she said. The measure could add a “level of confusion over what the EU automotive sector should do to grow and compete with China”, she added.