Chinese Companies in Europe — 2026-09-13
Hungary’s new government has intensified environmental scrutiny on Chinese battery and EV giants CATL and BYD, delaying production timelines and raising political risks for their flagship European plants. Simultaneously, the EU Commission proposed new public procurement rules explicitly targeting Chinese bidders, while BYD expanded its logistics fleet with ten new car-carrier vessels to support growing exports.
Chinese Companies in Europe — 2026-09-13
Top developments
BYD and CATL Face Environmental Scrutiny in Hungary
Nikkei Asia reported on September 11 that Hungary’s new government is reviewing investment agreements signed under former PM Viktor Orbán and tightening environmental enforcement at Chinese factories. This crackdown specifically targets BYD’s plant in Szeged, which is already a year behind schedule, and CATL’s battery facilities. The move adds significant political risk to China’s largest industrial investments in Europe, signaling a shift from previous pro-investment policies to stricter local oversight.
BYD Expands Car-Carrier Fleet with Ten New Vessels
On September 11, reports indicated that BYD has ordered 10 additional car carriers, each capable of transporting 9,200 car equivalent units (CEU). This expansion brings BYD’s total fleet to 18 ships, significantly boosting its capacity to ship vehicles directly to Europe without relying on third-party logistics. The move underscores BYD’s strategy to control its supply chain amid rising EU tariffs and logistical bottlenecks.
EU Proposes "Buy European" Procurement Rules Targeting China
The European Commission proposed legislation on September 9 (reported widely by September 11) introducing a "European preference" in public procurement for strategic services. This move aims to exclude non-EU firms, particularly Chinese companies, from a market valued at €2 billion annually. The proposal requires bidders to explain prices falling significantly below competitors, a provision analysts describe as a direct counter to Chinese state-subsidized bidding practices.
Li Auto Announces European Debut for October
Li Auto confirmed on September 10 that its European version of the Li i6 SUV will debut at an auto show in October, with sales expected later this year. This marks another major Chinese EV maker entering the European market, following BYD, Nio, and Xpeng. The entry adds pressure on legacy European automakers who are already struggling to maintain market share against rapid Chinese expansion.
Deals, expansion & investment
No major new M&A deals or factory groundbreaking ceremonies were reported in the strict 24-hour window, though BYD’s fleet expansion (noted above) represents a significant logistics investment. Chery’s ongoing ramp-up in Barcelona continues, with capacity reaching 130,000 vehicles annually, though specific updates from the last 24 hours were limited.
Regulation & market context
The EU’s regulatory environment tightened significantly this week. Beyond the procurement rules, the European Parliament’s rapporteurs on the Industrial Accelerator Act are pushing to close the EU market to Chinese investment in sectors where Beijing is dominant, going further than the Commission’s initial proposals. This legislative momentum suggests a coordinated effort to shield strategic industries from Chinese overcapacity and subsidized competition.
On the radar
- Hungary’s Environmental Review: Watch for specific regulatory findings or fines issued to CATL and BYD in Szeged and Debrecen, which could set a precedent for other EU member states.
- Li Auto’s October Debut: Details on pricing and model specifications for the European Li 6 will be critical for assessing its competitiveness against Tesla Model Y and VW ID.4.
- EU Steel & E-commerce Rules: Following July announcements, new implementation guidelines for steel and e-commerce regulations aimed at reducing trade imbalances with China are expected to clarify enforcement mechanisms.
By the numbers
- 9,200 CEU: Capacity per new BYD car carrier vessel ordered in September 2026.
- €2 billion: Annual value of the EU public procurement market potentially affected by new "Buy European" rules.
- 18 ships: Total number of car carriers in BYD’s expanding fleet after the latest order.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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