In China, global automakers seek clarity from an ambitious regulator

In China, global automakers seek clarity from an ambitious regulator ...

(This November 11 story correctly follows the Mercedes-Benz official's comment in paragraph 13 to show that the time between new rule and new rule is "short", not insufficient.)

For foreign automakers, selling in China, the world's biggest car market and the first-faster of the world with electric vehicles coming, can yield tremendous rewards. But the regulatory headaches, too, can be really painful.

A report titled "China auto regulation" describes the key complaints related to the country's autonomy law in the European Union.

Although the survey-based report released in September did not cite specific examples, auto industry sources say it highlights bubbling frustration with China's regulatory process and growing pains as automakers adapt to the country's expanding regulatory clout.

In the past, cars that meet EU and U.S. auto standards did not have too much trouble affecting Chinese regulatory bodies which based their own regulations on western equivalents.

China is entering the forefront of EV regulation now. Because of its sheer market size, accounted for roughly 40% of all electric vehicles sold worldwide in 2020 - and mainly the company's efforts to create a change in international standards across a range of sectors are under threat.


Last year, the Volkswagen AG redesigned a battery pack for its ID.4 electric vehicle illustrates the impact of the industry.

The battery pack failed the Volkswagen and German government tests to manage heat, but it did not meet the Chinese plan aimed at reducing the risk that EVs were unlikely to catch fire in the first five minutes of the crash, two sources told the news.

An official report said that only the government did not know when the new standards would be implemented but said the problem was solved, so the source said, however, in the statement that the government also committed to such a problem, who say they blamed a lack of attention to the Chinese regulators as they were not able to find out what the German automaker's point of view was, too.

In addition to sending managers to China's industry and auto testing agency China Automotive Technology and Research Center (CATARC) to demand clarification on how to make a rule effective, Volkswagen assembled a team of engineers who worked out fixings for around six months, said the sources.

Ultimately, the battery pack orginally planned was replaced by a heavy aluminum-steel pack with a different structural design. The mechanical design for the car's chassis was also changed.

"It is easier to get a new model to make a new model and ID.4 is an example of that," says one source.

The sources declined to be identified discussing internal matters. Volkswagen said that ID.4 smoothly gained regulatory approval, its regional teams get the necessary support to meet local legal requirements and a zero tolerance for non-compliance.


The era for testing and development in China, Hans Georg Engel, head of research and development at Mercedes-Benz last month told reporters last month one challenge for a new regulation is that the time between when it is clearly known and when it comes to new development is short.

We need to be quicker here in China, he said.

Chinese authorities could do more to ensure the regulatory process clearer and less prone to unwelcome surprises, senior executives say.

Those who didn't hear about the matter didn't think they were able to be identified, and declined to be identified. When deciding on the subject, a number of people are asked for a first meeting with an expert on new regulation for the Chinese people. Most of the chinese people are invited to initial meetings on proposed new rules but that's why foreign-owned automakers don't attend later.

Reuters's response to requests for comment is not responding to the chinese industry ministry and the CATARC.


China outlined China standards 2035, a strategy for two years, still to the same height - a common approach that requires several decades of research and implementation. China wants to make China, in an international level, a major voice, if not a driver, when international standards are set.

Its plans to promote better standards encompass a wide range of industries - from technology, packaging to biotech, to automobiles.

In line with this goal, CATARC, backed by China's industry ministry, is expanding its international reach.

In June, CATARC started an office in Geneva for the United Nations transportation regulators. It worked in the past and has also been working in conjunction with Indonesia's government on EV policies, and holding routine talks with European countries such as Belarus, Uzbekistan and the United States. In September, it said some of China's auto regulatory policies were adopted by the European Union, Israel and Chile.

In its annual meeting in September, the minister of ecology and environmental said addressing the growing global impact of the china's auto emissions rule. He said that the export of Chinese-made engines, components and testing machines will help to address a variety of problems, he said.

If it be so, the foreign companies will invest in more China's research and development centers, making it better invest them in their industry in order to meet their requirements more precisely, because they're interested in meeting the aforementioned challenges more specifically a foreign regulator.

Volkswagen is building a new research centre in the eastern Chinese city of Hefei, where it is boosting EV production. Last month Tesla Inc (TSLA.O) announced that it had built a new R&D centre in Shanghai, whose first outside the USA, while Daimler AG opened a new research centre in Beijing.

The world is changing so fast and many governments worldwide are developing and developing software-driven and electric vehicles, Hubertus Troska said at the opening of the opening.

"So far as China is important, we intend to make sure that our Chinese requirements are not forgotten."

We're following a standard. .

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