But they are ready to provide subsidies in return.
Modern cars are equipped with security systems that process video recordings from on-board cameras, and this can be a problem in terms of information security when it comes to foreign-made vehicles. European authorities are not only concerned that Chinese electric cars and hybrids are cheaper than locally assembled cars, they are also worried about information security, as the publication suggests Bloomberg.
Image source: Dongfeng Motor Group
The fact is that the Chinese auto concern Dongfeng Motor Group is negotiating with the Italian authorities about building a car manufacturing plant in the country, and the local government insists that on-board electronics be supplied to them by European manufacturers, and that data processing and storage be carried out within Italy. Prime Minister Giorgia Meloni met with her Chinese counterpart in Beijing last week with the aim of establishing economic ties between the countries on mutually beneficial terms.
Since the EU authorities have introduced higher duties on Chinese-made electric cars, Chinese companies are interested in localizing their production in Europe. In addition, the Italian authorities are trying to force Dongfeng to use at least 45% of locally produced automotive components when assembling its cars in the country. In exchange, however, the Italian government is ready to provide subsidies worth hundreds of millions of euros. Last year, 880,000 cars were produced in the country, and by the end of the decade, Italy expects to increase this number to 1 million units. By the way, seven years ago, the country annually produced 1.14 million cars, and at the beginning of the century it reached 1.74 million units. The Italian authorities are negotiating the localization of electric car production with other Chinese companies.
