Chinese EV makers reduce investments in Europe as trade tensions escalate

Chinese electric vehicle (EV) manufacturers are scaling back investments in Europe due to rising trade tensions. The Chinese government has advised automakers to pause major investments in EU countries that support high tariffs on Chinese-made EVs, following the EU's new tariffs of up to 45.3%. This shift comes as Chinese battery maker SVOLT Energy plans to close its European operations by January 2025, citing poor sales and financial pressures. The company will shut its German subsidiaries and lay off staff, indicating a broader retreat from the European market. Negotiations between the EU and China are ongoing to explore alternatives to the new tariffs. Both sides are considering a "price undertakings" agreement to regulate export prices and volumes, but challenges remain in reaching a comprehensive deal.