Beijing tells automakers to halt EU expansion

Agencies

China told its automakers to halt big investment in European countries that support extra tariffs on Chinese-built electric vehicles, a move likely to further divide Europe, after the new European Union tariffs of up to 45.3 percent came into effect on Wednesday.

In a private meeting held between BYD (1211), SAIC, Geely (0175) and the Ministry of Commerce, companies were told to pause their heavy asset investment plans such as factories in European countries.

As tension between the two sides continues to increase, the EU dispatched officials to Beijing to explore whether an agreement can be reached on so-called price undertakings to avoid tariffs.

While the conflict on electric vehicles continues, the European Commission is set to launch an investigation into Chinese online retail platform Temu over whether they are in breach of the rules meant to prevent the sale of illegal products online.

Meanwhile, Reuters said that Temu is considering joining an European counterfeit group called the "Memorandum of Understanding on the Sale of Counterfeit Goods on the Internet."

In other news, the United States has imposed sanctions on some 400 entities and individuals in fresh action against Russia, including dozens of Chinese, Hong Kong and Indian companies, in an effort to push against third-country evasion of sanction.