As the EU tightens trade regulations on sustainable clean technologies, Chinese companies seeking EU subsidies will need to operate production facilities in Europe and share technical expertise, with these standards taking effect by the end of December. Meanwhile, the EU has adopted a tough stance on trade regulation with China, also referencing related U.S. measures and the current regulatory landscape faced by Chinese firms. The European Commission plans to implement similar practices in the European market that it had previously criticized China for. Previously, international companies operating in China faced requirements accused of leading to technology outflows; now, the EU is tightening regulations, stipulating that Chinese companies must not only produce in Europe but also share technology to qualify for subsidies. The EU has already imposed high tariffs on Chinese electric vehicles and introduced stricter requirements for companies receiving subsidies in clean hydrogen technology.
Key points:1) The EU plans to force Chinese companies to transfer technology in exchange for subsidies by tightening trade regulations, with the standards taking effect by the end of December.2) The EU has consistently maintained a tough stance on trade regulation with China, covering multiple sectors such as electric vehicles and clean hydrogen technology.Chinese companies are facing increasingly stringent regulatory environments in global markets, with both the EU and the U.S. introducing numerous targeted measures. The EU's new plan to compel Chinese firms to transfer technology is noteworthy, driven by its own industrial development considerations as well as influence from U.S. practices. Chinese companies will face greater challenges when expanding into international markets, particularly in Europe and the U.S.
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