Chinese mull car manufacturing in Portugal
China’s ambassador to China has announced “ideas” that Chinese car manufacturers could set up assembly line factories in Portugal.
Chinese electric cars are widely seen as among the most economical alternative to current models, but China’s goal is more than just selling electric vehicles to the European market; it wants to invest “in Portugal’s market” and “collaborate” in the international market, especially the European one.
Chinese manufacturers have “ideas” to build factories in Portugal, starting with “assembling”. This was stated by Zhao Bentang, China’s ambassador to Portugal, in an interview at the CNN Portugal Summit this week.
“I am optimistic (about Chinese investment in Portugal) and there are ideas that companies like BYD – a Chinese high-tech company that specialises in electronics, automobiles, clean energy, and rail transport and is known for their rechargeable batteries, electric vehicles (EVs), and public transportation systems, focusing on zero-emission solutions – could invest in Portugal but it needs incentives for this to happen.
“We hope that European governments and the Portuguese government can treat Chinese companies fairly and without discrimination because companies can come and open up markets for a win-win situation with European companies,” he said.
And added: “In the beginning, China attracted European investment to successfully develop its car industry. Now, China wants to collaborate with Europe; not just to sell cars but to learn and build mutual and reciprocal benefits”.
The ambassador believed that “more Chinese companies will collaborate in the European market, not just batteries, but electric cars”.
“China has the cars, batteries and the technology, and also has as very complete (supply, production and logistics) chain that can help bring prices down” he said, adding that in the 1990s China’s car sector was very behind that of other countries in Europe, or the US but that investing in its home market had enabled China to evolve overseas where the Chinese want to create markets.
China’s car manufacturing industry is thriving and is one of the world’s largest, both in production and market size. It’s also a major exporter, particularly of new energy vehicles (NEVs). While the industry is experiencing a shift towards electric vehicles, some traditional car manufacturers are still facing challenges.
In 2024, China’s Foreign Direct Investment (FDI) in Portugal reached a record high of €3.96Bn. This represents a 9.3% increase compared to 2023, and signifies 14 consecutive years of growth in Chinese investment in Portugal. This also marks a 4.5-fold increase in Chinese FDI in Portugal over the last decade, according to data from the Bank of Portugal and Portugal’s overseas trade bureau AICEP.
