China forbids investments in India related to automobiles

China’s Ministry of Commerce has encouraged automakers to refrain from making any auto-related investments in India. This is a component of Beijing's larger plan to protect the nation's electric vehicle industry from legal threats and keep control of its technological know-how. China hopes to reduce the possibility of knowledge leakage by avoiding investments in India, guaranteeing that its advancements in EVs stay a domestic asset.

China is promoting the export of knock-down kits. These kits consist of vehicle parts manufactured within China, which are then shipped abroad for final assembly in destination markets. By employing this strategy, Chinese automakers can benefit from international production while keeping core technology development within the country. This move also helps them bypass punitive tariffs imposed on Chinese exports in certain markets.

Another notable directive involves Turkey. Automakers looking to establish operations in Turkey are required to first inform China’s Ministry of Industry and Information Technology and the Chinese embassy in Turkey. This precondition underscores China’s desire to closely monitor any overseas investments, especially in strategically important markets.

As Chinese automakers gain traction in international markets, China is taking calculated steps to maintain control over its advanced EV technology. The export of knock-down kits and restrictions on investments in certain countries highlight Beijing’s commitment to safeguarding its technological innovations while facilitating global growth for its automakers.