The Ministry of Commerce convened executives from more than a dozen electric car makers in July, under so-called “window guidance”, to discuss the risks of building plants abroad, according to Bloomberg.
Two industry officials with knowledge of the situation confirmed the meeting took place and said the ministry told carmakers to better protect their assets and technology as they ramp up their expansion overseas.
In mainland China, authorities use window guidance to give verbal or written instructions to companies on government policy. Generally, companies that fail to comply with policy directions delivered via window guidance will not be punished in accordance with the country’s rules and laws.
During the meeting, the EV makers were encouraged to focus on knock-down assembly lines – where key components are produced at home before being shipped overseas where they are assembled closer to the consumption markets – rather than setting up supply chains and large-scale facilities outside the mainland.
