Germany and France Push Stricter ‘Made in Europe’ Rules, Putting New Pressure on China's Electric Car Industry
Germany and France have agreed on tougher “Made in Europe” automotive rules that could increase pressure on Chinese electric vehicle manufacturers, including BYD, Chery and Xpeng. Announced on October 16, 2026, the proposal links certain government subsidies and public contracts to European manufacturing, research and development. It includes a proposed 70% European-content requirement for vehicle components excluding batteries, alongside phased battery-sourcing targets. The agreement also supports relaxing the EU's 2035 vehicle emissions target to a 90% reduction. Chinese companies may need to expand European factories and supply chains to remain competitive. The proposals still require approval through the European Union's legislative process.