New Energy Vehicles (NEVs) in China
- Thread starter supercat
- Start date
FriedRiceNSpice
Captain
There is nothing wrong with the US protecting domestic industry. What's distasteful is US meddling in other countries trying to prevent those countries from also buying Chinese products and strongarming other nations to deny exports of certain technological products to China. Trump's broad tariffs were stupid, but targeted tariffs to protect strategic/critical industries is something that is done by all sovereign nations.
With all the scare stories coming from the west, I think its pretty much inevitable that Chinese cars will be banned in the west. US has already banned it. But EU will also ban it I think. They are building up the case against Chinese cars now. Overcapacity is just the first part, they will really hit Chinese cars with spying, just like what they did to Tiktok.
I actually think Chinese car companies need to focus less on EU and more on the global south. That will save them from investing money and then having to give up those investments when the inevitable ban hits them.
FriedRiceNSpice
Captain
Might be still worthwhile to pursue JVs in European countries and focus on the friendly countries (ie Serbia, Hungary, Greece, Romania).
I don't think they will just tariff Chinese branded vehicles. They will outright ban it with the ground of national security. Just like how they banned Huawei. They will say Chinese cars can transfer data to China, that's it, ban started.
Chinese automakers should focus on Russia, South Africa, Brazil, Nigeria, Angola, Colombia, Venezuela, Indonesia. Opening factories, increasing economic cooperation with these countries. Today, Russia and Brazil together buy 4 million new cars every year. With the growth of economic activity and competitive prices they have the potential to reach 8 million new cars and surpass Western Europe. Lagacy automakers had no competition before in Russia, ASEAN and Latin America, so their markets were stagnant and only had expensive and outdated cars, but with Chinese investment they will be brilliant markets with enormous growth potential.
China should never bet on entering Europe's vassal markets, which depend on the US for everything. Europe and US are riskier markets than India. They are a cartel that will never allow competition.
China should never bet on entering Europe's vassal markets, which depend on the US for everything. Europe and US are riskier markets than India. They are a cartel that will never allow competition.
If this done then China should just add 100% tariffs on US vehicle, and US vehicle parts imports.
I would also forbid the repatriation of profits made by GM in China to the US.
Should hit Joe Biden right where it hurts. Since GM workers are a big part of the Democrat party voting base.
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