Slovenia Touts Itself as Investment Destination for China’s Auto, Green Tech Firms

By Bao Zhiming and Wang Xintong

Slovenia could serve as a gateway for Chinese companies to enter Europe, a government minister said, calling for more Chinese investment in local sectors such as automotive and green energy.

Economy, Tourism and Sport Minister Matjaž Han told Caixin in a recent interview that Slovenia’s commitment to a green, sustainable economy can offer opportunities to Chinese companies, particularly in clean energy sectors like solar power.

Han also highlighted opportunities in the automotive sector, which offers around 40,000 jobs and accounts for 10% of Slovenia’s GDP and 25% of its exports. “The new automotive cluster in Slovenia … will in the next few years invest hundreds of millions of euros in the technological reformation,” he said.

The minister acknowledged China’s technological breakthroughs in automobile innovation in recent years and also admitted European carmakers are facing challenges.

In October, backed by the Ministry of the Economy, Tourism and Sport, Ljubljana hosted an event for “mutual acquaintance and networking” between Slovenian and Chinese carmakers.

“The global automotive industry is at a historic turning point in the transition to a carbon-free society. But these challenges bring not only risks but also many business opportunities,” Han said at a meeting related to the event, according to a ministry press release.

“The Ministry of the Economy, Tourism and Sport is aware of this and is fully committed to keeping the industry in Slovenia,” he added.

A report cited in the press release showed that between 2000 and 2022, the share of EU-produced vehicles in the global market declined from 31% to 15%, while the share of vehicles produced in China increased from 4% to 32%. Globally, vehicle production increased from 58 million vehicles in 2000 to 85 million in 2022.

Han told Caixin he saw numerous opportunities for China-Europe cooperation, especially in skills exchanges. Slovenia can serve as “a country that opens its doors to Europe” for Chinese companies, he said.

Slovenia is one of several countries offering itself as a gateway to Europe for China’s automakers and green tech manufacturers, including Turkey and the EU’s top destination for Chinese investment this year, Hungary.

In early November, a record 35 Slovenian companies participated in the China International Import Expo in Shanghai. That’s part of Ljubljana’s efforts to address the country’s huge trade deficit with China, which has been exacerbated in recent years by the Covid pandemic and geopolitical tensions, according to Han.

“As we know, China’s exports to Slovenia are much more than Slovenia’s exports to China. I sincerely hope that we can balance these proportions,” the minister told Caixin.

Customs data showed China exported $3.727 billion worth of goods to Slovenia from January to October, down 1.6% year-on-year. In comparison, Slovenia’s exports to China were only $300 million during the period, despite a 5.7% year-on-year increase.

“Trade between China and Slovenia needs to be balanced,” as well as between China and the EU, Han said.

He also said countries within Europe “will have to make agreements regarding these questions so that the European economy can develop further and be competitive toward China.”

The minister’s comments come as the outcome of talks between Beijing and Brussels to find an alternative solution to the EU’s extra tariffs on imports of China-made EVs remains up in the air.

As part of the bloc’s efforts to address trade imbalances and ensure fair competition, the European Commission officially launched an anti-subsidy probe into China-made EVs in October last year.

In late October this year, the commission concluded the probe by imposing five-year definitive duties on China-made EVs. The probe found state subsidies were enabling Chinese automakers to unfairly undercut their European rivals.

When the EU’s 27 member states voted on the tariffs on Oct. 4, 10 countries voted in favor, twelve abstained, and five voted against, including Slovenia.

“I think we are not solving the crucial problem in that way,” said Han, who represented Slovenia in the vote. He suggested that cooperation could be a more viable solution.

Contact reporter Wang Xintong (xintongwang@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)

caixinglobal.com is the English-language online news portal of Chinese financial and business news media group Caixin. Global Neighbours is authorized to reprint this article.

Image: Kalyakan – stock.adobe.com