China's Ministry of Commerce has issued a warning to local automakers about the risks of foreign investments.

Reuters shared Thursday that in a meeting held in July, the ministry advised local automakers not to invest in India, Russia and Turkey. The ministry also pointed out the risks of building facilities in Europe and Thailand.

An official reportedly shared that carmakers should use overseas factories for final vehicle assembly with exported parts from China. This would also lighten the risks coming from geopolitical issues.

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The fiasco caused by China and India's military conflict at the Himalayan border in 2020 led New Delhi to tighten its monitoring of Chinese investments, causing other projects to be halted.

The country's Chery is discussing with Russian manufacturers about producing vehicles in Russian facilities. Chinese automakers are also sharpening their search for expansion overseas while facing an "overcapacity problem" due to a demand slowdown caused by increased prices.

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