FT: EU wants to make Chinese companies share technology with European partners

The European Union wants to make Chinese companies transfer technology to European businesses in exchange for European subsidies. The Financial Times (FT) reported this on Tuesday, citing two senior EU officials. For now, the conditions are expected to apply only to subsidies for battery development, but could eventually be extended to other areas, the FT added.

These requirements resemble, on a smaller scale, a similar model in China, where the government pressures foreign companies to share intellectual property with Chinese partners in exchange for access to the Chinese market.

Brussels is expected to issue a call for applications in December for a tender offering one billion euros in grants for battery development. The conditions are likely to include new criteria requiring Chinese companies to have plants in the EU and share technological know-how with local partners.

Officials said the criteria could nevertheless change before the tender begins. On the other hand, the scheme could serve as a pilot project ahead of extending the model to other industries, the FT added.

Batteries are crucial to the development of the electric vehicle market. According to the FT, they account for more than a third of manufacturing costs. At the end of October, the EU imposed countervailing duties of up to 35.3 percent on imports of battery electric vehicles from China, in addition to the standard 10 percent import tariff.

According to the European Commission (EC), Beijing artificially lowers production costs through unfair subsidies, giving Chinese manufacturers an unfair advantage.