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China’s EV makers face rising EU demands on climate disclosures, sustainability compliance, eroding export edge: expert

  • EU regulations and laws aimed at achieving its 2050 net zero ambition have major implications for Chinese firms, says TUV Rheinland technical manager
  • Some EU measures ‘can be considered a kind of protectionism’, he says

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Cars are being assembled at the NIO Second Advanced Manufacturing Base in Hefei, China’s Anhui Province on October 11, 2023. Photo: Xinhua
Eric Ng
Chinese electric vehicle (EV) makers face a mounting burden from disclosures relating to carbon emissions and other sustainability and compliance issues in the European Union, their largest export market, according to a sector expert.

Rising environmental requirements will erode some of the competitive advantage of Chinese EVs and components, given their high carbon footprint from long distance transport, said Ray Niu, customised services senior technical manager at testing, inspection and certification provider TUV Rheinland in China.

“The EU has launched a series of regulations and laws in recent years as part of efforts to achieve its 2050 net zero carbon ambition, which have major implications for Chinese firms,” he told the Post.

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“Such regulations not only brought additional sustainability requirements for market entry into the private sector, they are also manifested in the EU’s public-sector procurement policies. Some can be considered a kind of protectionism.”

Cars wait to be loaded onto a ship for export at the port in Yantai, in China’s Shandong province, on January 2, 2024. Photo: AFP
Cars wait to be loaded onto a ship for export at the port in Yantai, in China’s Shandong province, on January 2, 2024. Photo: AFP

For example, he said, the submission of an environmental product declaration (EPD) has been added as a requirement in the tendering of public electric buses, which has affected Chinese suppliers like Shenzhen-based BYD, the world’s largest EV maker.

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