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How UAE fits into China’s electric vehicle push

The United Arab Emirates’ electric vehicle ambitions and restrictions from the United States make the Gulf state an attractive partner for Chinese firms, but Abu Dhabi has a way to go before it meets its electric vehicle ownership targets.
Attendees look around the at NIO EP9 during the 2022 Central China International Auto Show on July 14, 2022, in Wuhan, Hubei province, China.

Emirati and Chinese companies signed two electric vehicle-related agreements in the past week, signaling once again the importance of the United Arab Emirates in China’s ambitions in the sector.

Chinese electric vehicle maker Nio Inc. announced on Monday that its subsidiary, Nio Technology, entered into a technology licensing agreement with Forseven Limited, an electric vehicle subsidiary of the Abu Dhabi-based CYVN Holdings. Per the agreement, Forseven will be able to use Nio’s software, intellectual property and other information for the development, manufacturing and sale of Forseven vehicles, Nio said in a statement.

On Thursday, Chinese electric vehicle company Xpeng said it established a strategic partnership with Abu Dhabi-based holding company Ali & Sons. The move comes as Xpeng seeks to boost its overseas production via local dealer partnerships in Egypt, Jordan, Lebanon and Azerbaijan, Reuters reported.

Why it matters: The two agreements build on previous cooperation between the UAE and China on electric vehicles, including between CYVN and Nio. The following is a list of some recent electric vehicle deals between entities in both countries:

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