South Korea has called on China to ensure “a fair business environment” for battery manufacturers to compete for business across the two countries.
South Korea’s trade minister Paik Un-gyu (pictured) made the plea during a meeting with his Chinese counterpart Miao Wei in Seoul, the Yonhap news agency reported.
According to Yonhap, Paik said both nations “need to develop their relations focused on trade of parts and materials into a partnership in new industrial sectors”. “A fair business environment is needed to promote free competition and cooperation between companies of the two nations, including on the electric vehicle batteries.”
The industry ministers’ meeting came one day after the Chinese government posted a list of car models eligible for production subsidies, Yonhap said.
The list did not include models such as the Dongfeng KIA and the Dongfeng Renault that use South Korea’s LG Chem power packs. However, China’s Association of Automobile Manufacturers issued a separate “white list” of supplier firms that included LG Chem and fellow South Korean battery makers Samsung SDI and SK Innovation.
But Paik told journalists: “Korean battery makers being included in the white list does not directly lead to a Chinese government decision to offer subsidies, but it means that their advanced battery technology is acknowledged in the market. I hope the Chinese government gives the right signal in the market to promote the use of Korean batteries in electric vehicles.”
BBB reported last February that Chinese and South Korean businesses had formed two new joint ventures to produce lithium-ion battery materials from bases in China.
The move followed months of claims and counter claims over China’s alleged “blocking” of South Korean batteries in a heated trade spat.