Under all-out pressure, the United States has set up obstacles in China's industry, from chips to electric vehicles, and refuses to compete on an equal footing.
But in the electric vehicle industry, China has become a global leader, with technology not inferior to the United States, and the price is more competitive.
In order to support local car companies, the United States imposed 100% tariffs on Chinese electric cars to curb their sales and prevent expansion in the American market.
Can this kind of protection of the United States effectively resist high-quality and low-cost Chinese products?
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The U.S. crackdown on China's industry
The United States has been listing artificial intelligence, supercomputing and chips as emerging technologies that are subject to export control, with the aim of curbing China's development in these areas. Last year, the United States imposed sanctions on Chinese companies, severely restricting the export of advanced chips and chip-making equipment to China.
In addition to export controls, the United States has also included China's leading technology companies in the Entity List of Export Controls, prohibiting American companies from conducting technology transactions with them without a license, and the United States has also included Yangtze River Storage, a leading Chinese memory chip company, on the Entity List, which has severely damaged its development prospects.
While China is vigorously developing the electric vehicle industry, it has also become a new target of US suppression. At present, the United States has imposed strict restrictions on the export of advanced batteries and automotive semiconductors to Chinese electric vehicle companies, in order to hinder their growth.
In order to protect the domestic industry, the US government has adopted a series of protectionist measures in addition to technological controls. Last year, the United States imposed anti-dumping and countervailing duties on electric vehicle battery imports from China, dealing a heavy blow to Chinese companies.
In addition, the United States has long banned the export of many civilian materials and technologies used in civil aviation products to China, sanctioned a number of Chinese aviation companies and research institutions, and restricted the export of key technologies such as qubit manipulation to China.
It can be said that the US crackdown has extended to all aspects of China's technology industry, intending to curb China's development in the field of emerging technologies and maintain its own technological hegemony, even so, the United States cannot shake the mainland's development in the field of electric vehicles.
China's position in the field of electric vehicles
Data shows that China's electric passenger car sales accounted for 53.9% of the global market in 2022, maintaining its leading position for many years. Chinese electric vehicle companies have seized an absolute advantage in the domestic market, and are also actively exploring overseas markets.
In core areas such as power batteries and intelligent networking, China is rapidly catching up with international giants. The technical strength of battery companies such as Yiwei and CATL has reached the world-class level, and car companies such as Xiaopeng and Li are in a leading position in intelligent driving systems.
With local production and scale effects, Chinese brand electric vehicles are generally 15%-30% cheaper than international brand models. Moreover, the Chinese government vigorously supports the development of the new energy vehicle industry, and has introduced favorable policies such as purchase subsidies and tax exemptions.
At the same time, speed up the construction of charging piles and other supporting facilities to create favorable conditions for the promotion and popularization of electric vehicles. China's electric vehicle industry is developing rapidly and its international influence is increasing day by day, and it has become an important player and leader in this field.
As the world's largest consumer of automobiles, the United States has been leading the development of the electric vehicle industry. But in recent years, the rise of Chinese electric vehicle companies has also brought huge challenges to the U.S. electric vehicle industry.
The current state of the U.S. trolley industry
Tesla, undoubtedly the representative of the American electric vehicle industry, has a share of about 65% of the electric vehicle market in the United States. Traditional car companies such as GM and Ford are also increasing their layout in the transformation of electrification. In addition, new car companies with Silicon Valley technology backgrounds have also entered the game.
In terms of power battery technology, U.S. companies have long relied on Japanese and South Korean battery suppliers. Although Tesla, General Motors and other companies have built their own battery factories, there is still a gap between China's leading companies.
In terms of the degree of intelligent networking, American technology companies have certain advantages, but the strength of Chinese car companies Xpeng and NIO's intelligent driving systems should not be underestimated. In the field of autonomous driving, U.S. companies are strong in the field, and Waymo and Cruise are leading the world.
Due to high labor and operating costs, coupled with a reliance on batteries, electric vehicles in the United States are generally expensive, and only a few models can compete head-to-head with Chinese electric car brands.
However, with the introduction of the "Cast America" Act by the U.S. government, as well as the promotion of battery localization, the price of electric vehicles in the United States is expected to fall in the future, and the competitiveness will also be improved.
In the field of power batteries, intelligent networking and other technologies, Chinese tram companies are rapidly narrowing the gap with the United States. But when it comes to autonomous driving and software services, U.S. companies still have some advantages. The competition between the two sides on the global electric vehicle track is heating up.
However, the recent news that the U.S. government is considering imposing tariffs on Chinese electric vehicle imports has caused an uproar, and if this measure is implemented, it will have a profound impact on the electric vehicle industry pattern in China and the United States, as well as the world.
Analysis of the impact of U.S. tariffs on Chinese trams
If the U.S. imposes additional tariffs of 100% on Chinese electric vehicles, it will directly raise the price of these models in the U.S. market and hit their competitiveness.
Taking NIO ES8 as an example, the price will be as high as $77,000 after the tariffs, which is more than 10% more expensive than Tesla's Model X, which will undoubtedly hit its performance in the US market hard. In turn, the sales of American brands such as Tesla in the Chinese market will also be affected.
In order to avoid the impact of tariffs, Chinese automakers are likely to accelerate the process of localizing in the United States and establish local production bases. At the same time, U.S. battery suppliers will further increase their cooperation with Chinese companies.
In the face of trade barriers, Chinese tram companies will increase R&D investment in batteries, autonomous driving and other fields, reduce dependence on foreign countries, and form an independent and controllable industrial chain. U.S. companies will also expand innovation in the fields of new energy and intelligent networking, and improve their comprehensive strength.
Raising tariffs means consumers will pay for electric vehicles. Affected consumer groups are likely to put pressure on the government to oppose the tariffs. At the same time, some U.S. electric vehicle companies may also lobby the government to avoid hurting their own interests.
China and the United States are currently the double-headed dragon of the global electric vehicle market, once caught in the trade war, it will slow down the pace of development of the electric vehicle industry in the two countries, restricting the promotion and popularization of new energy vehicles around the world. Other auto-producing countries will benefit from this and capture some of the market share.
While the tariffs are intended to protect domestic industries, they will also exacerbate the "muscular confrontation" between China and the United States in the field of electric vehicles, triggering a broader negative impact. To maintain the healthy development of the industry, both sides need to follow the track of marketization and rule of law to resolve differences.
As a typical representative of the global manufacturing industry, the automobile industry has achieved remarkable benefits in the division of labor and efficient allocation of resources in the global supply chain. However, in recent years, the tariff friction between China and the United States in the field of electric vehicles has contradicted the general trend of global integration.
Possibility of competition and cooperation
The electric vehicle industry chain is long and complex, which requires China and the United States to cooperate sincerely in resources, technology, market and other links to give full play to their respective advantages.
China is a leader in power batteries and motors, and the United States has advantages in intelligent networking and autonomous driving technology, and companies from the two countries can carry out in-depth cooperation in these fields.
In addition, the two sides also have a broad space for cooperation in the construction of electric vehicle infrastructure and the formulation of standards. According to WTO rules, member countries are not allowed to impose discriminatory tariff policies on similar products from other member countries, otherwise it will be considered a violation.
Therefore, China and the United States should reach a win-win solution through friendly consultations through the WTO dispute settlement mechanism based on the principle of equality and mutual benefit.
Properly handling differences under the WTO framework will not only help maintain the authority of the multilateral trading system, but also promote the healthy development of the global electric vehicle industry.
conclusion
The electric vehicle industry chain is complex and the capital investment is huge, and it is difficult to fundamentally protect the U.S. domestic industry by simply raising tariffs. Tariff barriers may intensify the vicious competition between Chinese and American tram companies and restrict industrial innovation and development.
The U.S. government should focus on improving the overall competitiveness of its electric vehicle industry, strengthen infrastructure construction, and create a favorable environment for electric vehicle charging and intelligent networking. At the same time, American car companies should also be encouraged to actively explore the international market and achieve scale effects.
Although the competition between China and the United States in the field of electric vehicles is becoming increasingly fierce, it is more important for the two sides to grasp the general trend, resolve differences, and achieve healthy competition within the framework of rules.
In fact, the tram market in the two countries has huge potential, and it is fully capable of accommodating multiple car companies to develop together. Through complementary advantages and dislocation competition, Chinese and American car companies are expected to compete in the global electric vehicle market in the future.
Only by fully competing in a level playing field can the electric vehicle industry in China and the United States become truly strong and achieve leapfrog development. Compared with the trade war, openness and cooperation are king.
Resources:
China Industry Network: Biden was revealed to announce new tariffs on Chinese electric vehicles as soon as next week, China: The United States is wrong and https://baijiahao.baidu.com/s?id=1798661415822261889&wfr=spider&for=pc wrong
China Youth Network: Raimondo claimed that the United States could take "extreme measures" to ban Chinese connected cars from entering the United States, and the Chinese side has previously stated that it https://baijiahao.baidu.com/s?id=1798552006735953536&wfr=spider&for=pc
Observer.com: The Biden administration intends to impose four-fold tariffs on Chinese electric vehicles? U.S. analysts warn that China will fight back against https://baijiahao.baidu.com/s?id=1798722851264167218&wfr=spider&for=pc
Global Network: The United States wants to raise taxes on China's "key strategy" industries! Ministry of Foreign Affairs: Urge the US side to cancel all https://baijiahao.baidu.com/s?id=1798707468389281941&wfr=spider&for=pc of imposing tariffs on China