China and Poland agree to boost cooperation on electric vehicles

China and Poland have agreed to cooperate on electric vehicles despite the European Union's recent decision to raise tariffs on Chinese imports.

"Both sides will support the growth of two-way investments in electric vehicles, green development, logistics and other sectors," a joint action plan for 2024-27 said.

The document, which aims to "strengthen the comprehensive strategic partnership" between the two countries, was issued after Chinese President Xi Jinping met his Polish counterpart Andrzej Duda on Monday.

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Earlier this month the European Union announced that it would raise duties on Chinese EV imports by up to 38.1 per cent, prompting Beijing to announce an anti-dumping inquiry into pork imports in retaliation.

However, the bloc has agreed to talk with China about its anti-subsidy investigation in an effort to prevent a trade war.

Meanwhile, economic analysts have said that Chinese firms are likely to increase their manufacturing operations in Europe as a way of getting around the tariffs.

On Friday, the Polish government said that its Minister of State Assets Jakub Jaworowski had met a delegation from the Chinese car maker Geely to discuss the "role that Poland can play in the dynamically changing automotive market in Europe".

The Chinese company is working with the state-backed Polish firm ElectroMobility Poland to develop an electric car that is expected to start mass production in two year's time.

"Currently, intensive work is under way to evaluate the project implemented by ElectroMobility Poland. This work is aimed at verifying all business assumptions of the project," it added.

Meanwhile, another joint venture between the Chinese EV producer Leapmotor and the European firm Stellantis has started building cars at a plant in the Polish city of Tychy.

Elsewhere on the continent, the Chinese car firm BYD has invested in a plant in the Hungarian city of Sezeged, with a second European site under consideration, while SAIC said this month that it "plans to bring China's new energy technology and green factories to Europe".

Another Chinese carmaker, Chery, has acquired a plant in Barcelona through a joint venture with Spanish carmaker Ebro-EV Motors, becoming the first Chinese company to sign a deal to produce cars in western Europe.

China's Commerce Minister Wang Wentao visited the joint venture plant earlier this month, where he urged the EU to "abandon protectionism and return to the right path of dialogue and cooperation".

Spain is a key supporter of the EU tariffs, along with France, and could be one of the countries most affected by the investigation into pork products.

Beijing sees EVs as one of the key sectors for boosting exports and economic growth along with lithium-ion batteries and solar panels.

In the first five months of the year, EV exports had a total value of US$14.6 billion, a 3 per cent increase on the same period last year, according to Cui Dongshu, the secretary general of the China Passenger Car Association.

"New energy vehicle exports in May were not strong due to the EU's investigation," he wrote.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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