China Asks Carmakers to Halt Europe Expansion Over Tariff Spat
- Dongfeng said to have shelved plans to make cars in Italy
- Beijing also worried about poor demand for Chinese cars in EU
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China is pressuring its automakers to pause expansion in the European Union due to the escalating trade conflict over electric vehicles, people familiar with the matter said.
Beijing is telling manufacturers to put on hold active searches for production sites in the region and signing of new deals, and generally keep a low profile while negotiations over EU tariffs on Chinese EVs are ongoing, the people said, declining to be identified because the talks are private. State-owned Dongfeng Motor Group Co. has already halted plans to potentially manufacture cars in Italy in response to the warnings, the people said.