More than two years ago on the outskirts of a medieval German town, China¡¯s biggest EV battery company placed a €1.8 billion ($2 billion) bet on the future of global trade.
The decision by Contemporary Amperex Technology Co. Ltd. (CATL) to open a sprawling factory in central Germany ¡ª its first outside China ¡ª symbolized President Xi Jinping¡¯s recognition that protectionist impulses around the world are here to stay. The idea was simple: invest abroad, create local jobs and keep Chinese goods flowing into key markets. CATL ¡ª which this week started trading in Hong Kong after raising $4.6 billion ¡ª is a flagship example of that initiative.
¡°I see ourselves as a blueprint for Chinese companies who are looking to expand in Europe,¡± Matthias Zentgraf, the battery giant¡¯s European president, said from his factory office outside the town of Arnstadt. With the EU slapping tariffs as high as 45% on Chinese EV exports last year, it¡¯s a tactic being rolled out from Spain to Hungary by companies including BYD, Chery and Leapmotor.
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