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From chips to electric cars, the United States' suppression of China's industry is all-round, and it has never wanted to compete with China on an equal footing.
But trams are different from chips, China is also the world's giant in the field of trams, and the technology of electric cars in the United States is not much better than China's, and the price cannot be compared with China.
In order to protect local companies, the U.S. government wants to significantly increase tariffs on Chinese trams and curb Chinese tram sales. But does this way really work?
Build a wall with tariffs
According to the Wall Street Journal, the Biden administration planned to increase tariffs on Chinese trams as early as May 10 last week, and the increase rate is an astonishing 100%! The exact numbers will be announced on May 14.
The percentage of the tariff increase is so large that even American economists can't help but worry that the excessively high tariffs could provoke retaliation from China.
The mainland's attitude is very clear, the United States has already made a "tariff mistake" in the previous 301 investigation, if it increases the tariff on trams, it is a very excessive behavior, and the mainland will not sit idly by and watch this happen!
China Industry Network2024-05-10: Biden was revealed to announce new tariffs on China's electric vehicles as soon as next week
At present, the U.S. charges a 25% tariff on continental trams, but even so, continental trams still have an absolute advantage over American trams because of the price of continental trams.
The mainland tram adopts the mass production mode, and the huge production and equipment costs are evenly distributed to each car, so it seems that there are not so many.
In addition, the cost of labor on the mainland is not high, but the quality is better than that of many countries, and the production cost per car is much lower than that of the United States.
Coupled with the world's leading battery and motor technology, the cost of mainland trams is so low that it is difficult for other countries to imagine.
Starting in the second half of 2023, there has been a wave of price reductions in the mainland tram sector, with various brands vying for discounts and price reductions to clear their own inventory.
When foreign trams are still researching products and striving for mass production, the mainland's tram brands have already "broken their heads". In this case, how can foreign trams, especially American trams, compete with mainland brands?
Therefore, after NIO, BYD and other brands entered the US market, the pressure on American electric car brands increased sharply, and few car companies could withstand the impact of BYD's "full price", and only Tesla could maintain a certain market share.
But Tesla is having a hard time either. The United States is a country on wheels, and there is a huge demand for automobiles, and in the "current era of energy conservation and emission reduction", Americans need a large number of electric cars.
But even in the United States, where the poor are still the majority, the cheaper the tram is, the better. In this regard, the Continental Tram is much better than the Tesla.
Taking BYD as an example, BYD's cheapest tram "BYD Seagull" is only 70,000 or 80,000 yuan; Tesla's cheapest electric car, the Model 3, starts at 230,000 yuan.
There is a huge price gap between the two, and even if the overall performance of Tesla's electric car is better than BYD's, a large number of Americans will still choose BYD. Some U.S. car companies are even looking forward to raising taxes on Chinese trams.
Observer.com2024-05-11: The Biden administration intends to impose fourfold tariffs on Chinese electric vehicles? U.S. analysts warn: China will fight back
In this case, the Biden administration's tax hike on Chinese trams has become a helpless "off-the-board move" - the competition is too much, and the government is begging the government to put some pressure on the opponent.
However, the Biden administration's purpose of raising taxes on Chinese trams is not only to protect local companies, but also has other political purposes behind it.
The Biden administration's careful thinking
Biden's main purpose in raising taxes on Chinese car companies is his own political life.
At present, Biden has just been in office for 4 years and has one more chance to be re-elected, but he is 81 years old, and if he is not re-elected this time, he will almost lose the possibility of becoming president again.
And his rival Trump is only 77 years old this year, and he still has a long political life ahead of him. Therefore, Biden must seize this opportunity to achieve a second term as president, and one of the ways Biden can win votes is by cracking down on Chinese companies and stirring up public sentiment.
After a long period of propaganda by the US media, "sanctions against China" has become politically correct, and politicians have used methods and slogans to suppress China to gain the support of the people and Congress.
This seemingly unsophisticated method has been tried and tested repeatedly by American politicians, and "raising taxes on Chinese trams" is an obvious political move.
Of course, Biden will hold high the banner of "national security" and "protect local car companies", which will not only win the support of the people, car companies, and auto workers, but also suppress Chinese trams.
This kind of method is really not clever, and the entrepreneurs who have come through the trade war have clearly seen the routine of destroying the country: China's advantageous industries, high-tech industries that may catch up with or surpass the United States, will be suppressed by the United States.
Only Chinese companies with low technology content that do not threaten the status of the United States can make peace with the United States. The so-called "non-decoupling" of the United States only refers to those low-end manufacturing industries, and the United States has "left no hands" on high-tech industries such as chips and trams!
In fact, the hostility of the U.S. government to the continental tram was manifested very early.
It was foreshadowed
At the end of February 2024, Biden told the public that Chinese trams are "popular" in the United States and may threaten the security of the United States, and the U.S. government will take targeted measures.
In April, U.S. Commerce Secretary Raimondo also said that the U.S. could take very strict measures to prevent a large flow of Chinese trams into the United States.
And the reason given by Raimondo is very ridiculous: if there are too many Americans driving Chinese trams, the road information and driver information of the United States will be collected by China, therefore, Chinese connected cars cannot enter the United States!
This statement is very ridiculous, Tesla has been in China for so long, and the mainland has never made a similar judgment about Tesla. The United States, on the other hand, has been harsh on China's trams, and all it wants is unfair competition.
2024-05-09 : Raimondo claimed that the United States could take "extreme measures" to ban Chinese connected cars from entering the United States, as the Chinese side has previously stated
The United States has increased the tariff on trams by 100%, and the sales of mainland trams in the United States have indeed been affected, but the mainland will not sit on the sidelines, and if the United States takes such measures, the mainland can also use similar measures!
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