Hong Kong Watch publishes briefing exposing the risks of Huawei and BYD in the EU

Today, Hong Kong Watch is publishing a new briefing, titled, Huawei and BYD Meet Hong Kong: Economic, Ethical, and Security Risks to the EU.

The briefing follows Build Your Dreams (BYD) and Huawei separately announcing the establishment of their first European factories in Hungary and France, respectively, in November and December 2023. These announcements coincided with the EU-China summit, the European Parliament’s adoption of the Critical Raw Materials Act (CRMA), and the European Commission launching an anti-subsidy probe on cheap Chinese battery electric vehicles (EVs) in October 2023.

The briefing exposes the risks of Huawei and BYD establishing factories in the EU, given their extensive links to the Chinese Communist Party (CCP) and the Government of the People’s Republic of China (PRC). Huawei and BYD are also both strongly connected to Hong Kong, where basic rights and freedoms, including the rule of law, are quickly deteriorating. 

The briefing includes a timeline of 10 EU Member States’, including France’s, current policies on Huawei, which are inconsistent with allowing a Huawei factory worth €200 million (£173,440 million) to be built inside France itself. It also shares a prediction from Allianz, regarding the EU car industry standing to lose more than €7 billion (£6.04 billion) in net profits each year due to Chinese competition. The briefing includes further details related to other EU Member States.

In 2022, Hong Kong exported €698,603.86 (£637,284.66) worth of electrical apparatus; parts for diodes, transistors, and similar semiconductor devices and photosensitive semiconductor devices to China, making it likely that BYD is using Hong Kong as a platform from which to send needed EV components to China given that BYD’s major manufacturing centres are in Shenzhen, Huizhou, Shaanxi, and Shanghai.

Given the threat posed by Huawei and BYD to the EU, as well as their connection to one another and Hong Kong, and to the CCP, we recommend that the European Union’s Institutions take the following actions, among others included in the briefing:

  • The European Commission should conduct two separate thorough and independent reviews and the European Parliament should hold two separate hearings on the national security risks posed by Huawei and BYD. The establishment of a Huawei factory in France and a BYD factory in Hungary should be paused until the reviews and hearings are complete.

  • The European Parliament should adopt a resolution calling attention to the national security risks posed by Huawei and BYD, as well as all technology and EV companies with ties to the PRC’s human rights violations in Hong Kong or Xinjiang.

  • The European Commission should increase the import tariff on all Chinese EVs from 10 percent to 20 percent or more to offset the fact that Chinese EVs are entering the EU market at a 20 percent lower price than similar EU products.

  • The European Parliament should employ its Anti-Coercion Instrument (ACI) on EU companies which are suffering from Chinese technology and EV companies dominating the EU market, and implement countermeasures including restrictions on certain goods and services, foreign direct investment, and intellectual property rights.

Benedict Rogers, co-founder and Chief Executive Officer of Hong Kong Watch, said:

“Huawei and BYD are both deeply connected to Hong Kong, mainland China, and the Chinese Communist Party. In the case of Huawei, the creation of 500 jobs in France is not worth setting up infrastructure that would allow the infiltration of the CCP. Likewise, BYD’s track record does not merit a ‘get out of jail free’ card in the EU’s EV probe. France and other EU Member States must remain clear-eyed about the national security risks posed by Huawei and BYD, and take seriously the rationale behind the current policies on Huawei throughout the EU, while closely examining BYD’s rapidly increasing presence in the EU market.”

Megan Khoo, Research and Policy Advisor at Hong Kong Watch and the author of the report, said:

“It seems like China heard ‘de-risking’ and started frisking. With Huawei planning to break ground on a factory in France this year, and BYD to follow suit in Hungary, it is imperative that the European Commission launches thorough and independent reviews and the European Parliament holds hearings on the national security risks posed by Huawei and BYD prior to the proposed establishment of their respective factories on European soil.”

香港監察簡報揭露華為、比亞迪在歐洲設廠對歐盟的國安風險 建議歐盟委員會展開獨立調查、歐洲議會舉行聽證會

香港監察今天發表新簡報，揭露中國企業華為和比亞迪與香港的關係及其對歐盟的經濟、道德和安全風險。

簡報背景在於比亞迪和華為各於2023年11月和12月宣布，將分別在匈牙利和法國設立首間歐洲工廠。兩者宣布之時正值歐中峰會、歐洲議會通過《關鍵原材料法》（Critical Raw Materials Act），以及歐盟委員會於2023年10月啟動對中國廉價電動汽車的反補貼調查。

簡報針對華為和比亞迪與中國共產黨和中華人民共和國政府的廣泛關係，揭露了其在歐盟設廠的風險。華為和比亞迪亦與香港有密切關係，而香港的基本權利和自由（包括法治）正迅速惡化。

香港監察共同創辦人兼行政總監羅傑斯（Benedict Rogers）表示：

「華為和比亞迪均與香港、中國大陸和中國共產黨有深厚關係。就華為而言，向法國提供500個就業機會並不值得設立存在中共滲透隱憂的基礎建設。同樣，比亞迪的往績紀錄也不值得在歐盟電動車調查中擁有『免罪金牌』。法國及其他歐盟成員國必須對華為和比亞迪構成的國家安全風險保持清醒，並認真考慮整個歐盟目前對華為政策背後的理由，同時密切審視比亞迪在歐盟市場迅速增長的業務。」

香港監察研究及政策顧問、簡報作者Megan Khoo表示：

「中國似乎聽到『去風險』後，就躍躍欲動。華為計劃今年在法國設廠，比亞迪也計劃在匈牙利設廠。在華為和比亞迪在歐洲設廠這兩件事發生前，歐盟委員會必須就其構成的國家安全風險展開徹底的獨立調查，歐洲議會也必須就此舉行聽證會。」

News, ReportsMegan KhooEU, eu, red capital