China Auto Roundup: CATL Refutes U.S. Allegations of Forced Labor, Turkey to Hike Tariffs on Chinese Vehicles

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Battery products from Contemporary Amperex Technology on display on Dec. 12, 2023, in Changzhou, Jiangsu province. Photo: VCG

Welcome to the Auto Roundup — a weekly briefing on the biggest headlines in China’s automotive industry covering electric vehicles, gas-powered cars, battery and autonomous technology, and more.

China’s CATL refutes U.S. lawmakers’ allegations of using forced labor

Contemporary Amperex Technology Co. Ltd. (CATL) (300750.SZ), the world’s largest lithium battery manufacturer, has refuted U.S. lawmakers’ allegations that the company uses forced labor in its supply chains, calling the accusations “groundless and completely false.”

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CATL has denied allegations by U.S. lawmakers of using forced labor, emphasizing the claims are unfounded and detailing their supplier practices.
Turkey will implement a 40% tariff on all vehicles imported from China to reduce imports and address the current account deficit.
Nine carmakers, including BYD and Nio, received approval from Chinese regulators to conduct public road tests for advanced autonomous driving technology in several cities.

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Who’s Who

Contemporary Amperex Technology Co. Ltd. (CATL): Contemporary Amperex Technology Co. Ltd. (CATL) is the world's largest lithium battery manufacturer. Recently, CATL refuted U.S. lawmakers' allegations of using forced labor in its supply chains, declaring the accusations "groundless and completely false." The company stated it had ceased or never engaged with the named suppliers connected to forced labor.

Gotion High-Tech Co. Ltd.: Gotion High-Tech Co. Ltd. (Gotion) is another battery-maker implicated alongside CATL by U.S. lawmakers for having supply chains allegedly connected to forced labor and the genocide of Uyghurs in China. These allegations have led to calls for the Department of Homeland Security to blacklist the company, although specific refutations from Gotion were not mentioned in the article.

BYD Co., Ltd.: BYD Co., Ltd.'s chairman, Wang Chuanfu, stated that Europe and the U.S. are "afraid" of Chinese electric vehicles (EVs), highlighting Western efforts to limit imports of China-made cars. Wang's comments reflect China's growing strength in the EV industry. BYD is also among the nine automakers granted approval to start advanced autonomous driving tests on public roads in China.

Guangzhou Automobile Group Co. Ltd. (GAC): Guangzhou Automobile Group Co. Ltd. (GAC) Chairman Zeng Qinghong called for the government to provide fair treatment for conventional cars, highlighting that China's electricity used for NEVs is largely coal-generated. Additionally, GAC was among the nine automakers approved by Chinese regulators to test level 3 autonomous driving technology on public roads, collaborating with fleet operators in cities like Beijing, Shanghai, Guangzhou, and Chongqing.

Nio Inc.: Nio Inc. is one of the nine car manufacturers granted approval by Chinese regulators to test vehicles equipped with advanced autonomous driving technology on public roads. These tests will focus on level 3 autonomous driving capabilities and will be conducted in restricted areas within cities such as Beijing, Shanghai, Guangzhou, and Chongqing. The automakers will collaborate with fleet operators, including ride-hailing platforms, for these tests.

Chang’an Automobile Co. Ltd.: Chang’an Automobile Co. Ltd. is among the nine car manufacturers granted approval by Chinese regulators to test vehicles equipped with advanced autonomous driving technology on public roads. The tests will be conducted in restricted areas of cities including Beijing, Shanghai, Guangzhou, and Chongqing.

SAIC Motor Co. Ltd.: SAIC Motor Co. Ltd. is one of the nine car manufacturers authorized by Chinese regulators to test vehicles equipped with advanced autonomous driving technology on public roads. These tests aim to accelerate the commercialization of autonomous driving and will be conducted in restricted areas in cities such as Beijing, Shanghai, Guangzhou, and Chongqing.

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What Happened When

Thursday, June 6, 2024：: GAC Chairman Zeng Qinghong suggested at an industry event that policymakers should avoid resorting to a 'one-size-fits-all' approach for the auto industry.

Friday, June 7, 2024：: CATL refuted U.S. lawmakers’ allegations of using forced labor in its supply chains in a statement.

Friday, June 7, 2024：: BYD chairman Wang Chuanfu claimed that foreign countries are afraid of Chinese EVs in a speech at an industry summit in Chongqing.

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