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China warns EV makers’ on EU expansion plans

China is urging its automakers to pause expansion plans in the European Union amid escalating trade tensions over electric vehicles (EVs). Beijing has advised manufacturers to halt searches for production sites and new deals while negotiations on EU tariffs continue, leading state-owned Dongfeng Motor Group to cancel its plans for manufacturing in Italy. This directive, though not mandatory, may exacerbate tensions as both regions compete in the auto industry. The EU recently voted to increase tariffs on Chinese EVs up to 45%, citing unfair subsidies from Beijing, which China denies and has threatened to retaliate against European goods.

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