China introduces export licences for electric cars
From 1 January 2026, the Chinese government will require exporters of all-electric vehicles to obtain a licence to export such vehicles. In this way, China is strengthening its control over models shipped overseas.
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The official reason announced in a joint statement by the four ministries is "to promote the healthy development of trade in vehicles with alternative propulsion systems".
The announcement raises fears that a situation similar to rare earth element exports could emerge with electric vehicles at the turn of the year. Following an export ban in mid-April in response to the trade war waged by US President Donald Trump, Beijing though allowed overseas shipments to resume in June, but only under strict conditions. Since then, there have been regular reports of problems with export licences for rare earth elements - partly due to long processing times for applications, partly due to bureaucratic abuse.
The new rules affect not only Chinese carmakers actively expanding overseas, but also international manufacturers producing electric cars in China for other markets. Volkswagen, for example, produces the Cupra Tavascan only in China, while Tesla supplies the Model Y crossover produced by Gigafactory Shanghai to other Asian countries.
It remains to be seen exactly how licences will be issued. China may not only decide which manufacturers can export, but also consider on a country-by-destination basis, using electric vehicle export licences as a political pressure tool.
