Technology transfer and economic partnerships between European and Chinese companies in the – the case of Connected and Autonomous Electric Vehicles

Luca Tarantino

List of Abbreviations and Acronyms

ADAS - Advanced Driver Assistance ICT - Information and Communications Systems Technology BIS - Bureau of Industry and Security IPR - Intellectual Property Right BIT - Bilateral Investment Agreement JAC - Jianghuai Automobile Co. CAAM - China Association of JMCG - Corporation Automobile Manufacturers Group JV – CAEV - Connected and Autonomous Electric Vehicle LiDar - Light Detection and Ranging CAI - Comprehensive Agreement on LCV - Light Commercial Vehicle Investment MIC 2025 - Made in China 2025 CAV - Connected and Autonomous Vehicle MIIT - Ministry of Industry and Information Technology CPTPP - Comprehensive and Progressive Agreement for Trans-Pacific MoU - Memorandum of Understanding Partnership NEV - New Energy Vehicle DRAC - Dongfeng Automobile OECD - Organisation for Economic Co- Company operation and Development ETSI - European Telecommunications R&D – Research and Development Standards Institute SEP - Standard Essential Patent EV - Electric Vehicle SMIC - Semiconductor Manufacturing FCA - Automobiles International Corp FDI - Foreign Direct Investment TRIPS - Agreement on Trade-Related FTA - Free Trade Agreement Aspects of Intellectual Property Rights FTT - Forced Technology Transfer TSMC - Taiwan Semiconductor Manufacturing Company GAC - Guangzhou Automobile Group Co. UNCTAD - United Nations Conference on Trade And Development GAC FCA - GAC FIAT CHRYSLER Automobiles Co., Ltd V2X - vehicle to anything GATS - General Agreement on Trade in WIPO - World Intellectual Property Service Organization GWM - Great Wall Motor WHO - World Health Organization IoV - Internet of Vehicles WTO - World Trade Organization ICE - Internal Combustion Engine

Introduction

The global automotive industry is currently experiencing a period of profound transformation. Following the emergence in the national agendas of developed and developing countries of the environmental pollution as a global issue and international commitments such as the Paris Agreement on climate change of 2016, leading automobile manufacturers are reducing their production of Internal Combustion Engine (ICE) vehicles and concentrating the efforts in developing New Energy Vehicles (NEVs), a category adopted in China that include pure electric vehicles, hybrid vehicles, fuel cell vehicles and solar electric vehicles1. Simultaneously, big steps have been made toward producing autonomous driving and driverless . According to Vaidya and Mouftah, a Connected and Autonomous Vehicle (CAV) has the technology to «communicate with nearby vehicles, infrastructure, as well as objects» and is «capable of driving itself without human intervention»2. Specifically, CAVs sense the environment using devices that include radars, Light Detection and Ranging (LiDar), image sensors and 3D camera. Furthermore, CAVs are connected to infrastructures and other vehicles (vehicle to anything or V2X) through the Internet3. SAE International, a global association of engineers based in the US, defines as standards six «Levels of Driving Automation»: level 0, no automation; level 1, either steering or brake/acceleration support are provided; level 2, both steering and brake/acceleration support provided; level 3 and 4, a set of features can autonomously drive the vehicles under limited conditions; level 5, the vehicle is fully automated4. Connected and Autonomous Electric Vehicles (CAEVs) are the frontiers of the automotive industry. These vehicles will not only promote more sustainable mobili