Beijing asked Chinese carmakers to put off plans of expanding to Europe amid continuing negotiations over the European Union's plans to add tariffs on Chinese electric vehicles, Bloomberg News reported Thursday.
The directive, which wasn't a mandatory order, was also made due to concerns about potential overcapacity of Chinese electric vehicles in the region, according to the report.
China asked the carmakers to pause the signing of new deals and the search for new production sites in Europe, sources told Bloomberg, adding that state-owned Dongfeng Motor Group (HKG:0489) already withdrew its plans to potentially manufacture cars in Italy.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.