China supports investment by its automakers in Europe, commerce minister says

​China backs investment by its ​automakers in Europe, Commerce ‌Minister Wang ​Wentao said, calling for dialogue and consultation to resolve auto-sector issues through a "mutually acceptable, constructive" solution.

The remarks ‌come as Chinese automakers seek factory sites in Europe ahead of the expected adoption of EU local-content manufacturing rules, and as China faces pressure to limit ‌hybrid exports to the continent. China was committed to exploring solutions on auto-sector issues ‌under the China-EU trade consultation mechanism based on principles of compliance, balance and non-discrimination, Wang said, the ministry said in a statement on Tuesday.

"China doesn't want to see the ⁠European ​side choose a ⁠path of protectionism, restrict or close markets, and cause markets around the world to become mutually ⁠closed off." Wang made the comments during a meeting on Monday with Hildegard Mueller, ​head of the German Association of the Automotive Industry.

Beijing has said it ⁠will closely monitor EU moves on the number of hybrid cars China exports to Europe. China-made ⁠plug-in ​hybrid cars are not covered by the bloc's additional tariffs of up to 35.3% on battery-electric vehicles manufactured in China.

Separately, in a video ⁠call on Monday with Mercedes-Benz CEO Ola Kallenius, also president of the European Automobile ⁠Manufacturers' Association, Wang ⁠said China welcomes European automakers, including Mercedes-Benz, to expand investment in China and deepen innovation partnerships with Chinese counterparts.