HEFEI, China — The person who spearheaded China’s electrical automobile technique on Wednesday mentioned that Chinese language funding in the European electrical autos trade might be a method ahead for each side amid commerce tensions.

“I imagine the governments [of China and the EU] are actually contemplating how, by negotiations, they’ll mix funding along with commodity commerce,” mentioned Wan Gang, now president of the China Affiliation for Science and Know-how.

Wan was talking through an official English translation throughout a livestream of a panel on the World Financial Discussion board’s “Summer time Davos” assembly in Dalian, China. Spokespersons for China’s overseas ministry and the European Fee weren’t instantly accessible when contacted by CNBC.

China’s Ministry of Commerce mentioned over the weekend that it was launching consultations with the EU over the bloc’s probe into the position of subsidies in Chinese language electrical vehicles. The EU mentioned earlier this month that it could improve tariffs on imports of the autos.

“Though we’re not exporting a lot of EVs, maybe the Chinese language firms can attempt investing in Europe,” Wan mentioned, noting that such funding might create native jobs.

Wan grew to become China’s minister of Science and Know-how round 2007 and is understood for spearheading the country’s early push into electric cars.

He mentioned that, when China joined the World Commerce Group in 2001, he had already labored in Germany for about 15 years, together with at Audi — and he skilled a number of intervals of oil value volatility.

Wan added that 2001 was additionally the yr when the Chinese language authorities set a objective of creating a “reasonably affluent society,” which might imply each household would quickly have their very own automobile.

However fuel-powered autos would put stress on Beijing to make sure a steady provide of gasoline for customers, whereas air pollution would improve, Wan estimated on the time.

He claimed that China wasn’t interested by competing with anybody when creating its electrical automobile technique, however slightly contemplating its personal survival.

The U.S. this yr additionally raised tariffs on Chinese language electrical automobile imports amid rising criticism of how Beijing’s coverage has overly favored home gamers over overseas firms.

Wan mentioned China requested him to return from Germany and begin researching electrical vehicles greater than 20 years in the past. By round 2010, he mentioned Chinese language cities confronted excessive air air pollution issues, which incentivized an area effort to go electrical, beginning with buses and taxis.

This yr, new power autos — a class that features battery and hybrid-powered vehicles — have reached greater than a 3rd of latest passenger vehicles offered in China, in line with native passenger affiliation information.

Nonetheless, Wan mentioned that electrical automobile makers nonetheless have to do extra to cut back drivers’ vary nervousness — corresponding to enabling autos to know when and the place to be charged mechanically — and enhance security on the street by driver-assist know-how.

He mentioned that electrical automobile growth was an “irreversible pattern” for the world, noting that “we have to be totally decided to maneuver on regardless of the vicissitudes.”