9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
The Chinese auto industry is moving quickly and confidently across the planet, threatening the giants of the global auto industry, which are losing positions and money in the
Chinese car exports have grown so much that it is difficult to keep up with the sales momentum. Statistics say that in the first three months of 2023 alone, the volume of vehicle deliveries to foreign markets from China increased by 85%! And if in Russia “heavenly” products have to be greeted as if they were native, albeit without much joy, then in Europe they try with all their might to protect themselves from attacks by Asian players.
But while in the Old World they were thinking about the possibility of introducing further protective measures and developing plans to combat artificial dumping, in America they decided to completely deprive the Chinese of the temptation to conquer the United States. Moreover, they were worried about this in the United States five years ago, when China began to stock up on cheap cars en masse, but with an exhaustive set of technical solutions, for which American car manufacturers did not hesitate to cut off money from buyers.
And in 2018, then-US President Trump imposed tariffs on foreign goods worth more than $370 billion a year, including a 27.5% levy on cars from China. In fact, these measures are still relevant today. But the current occupant of the White House, Biden, regularly discusses their next tightening to reduce the rise of the country’s “heavenly” auto industry to an insignificant minimum (read – to zero).
Moreover, strict import tariffs are far from the only way to prevent the expansion of Chinese car manufacturers. Firstly, the lion’s share of cars from China, according to the requirements of safety standards and technical characteristics, are simply not able to pass local tests and certifications. Because they are built without taking into account local rules regulated by the authorities. Secondly, for “foreign” competitors, a higher investment limit is required to organize an authorized dealer network with the possibility of warranty and after-sales service.
In addition, access to a catalog of original components, consumables and accessories must be open, and this is simply not profitable for Chinese car manufacturers. And let’s face it, many of them have a spare parts base that doesn’t always match their positions, something that their Russian partners are fully confronted with.
And for the inability to order a part or receive a part that does not fit, in America, unlike the Russian Federation, they can easily be held liable. We are already silent about the risks that Asians may face due to the possible appearance of non-original products, because in the United States, as in Russia, they want to spend less and earn more. But this is not the only thing the Americans are doing in their efforts to prevent Chinese cars from entering the highways.
According to experts from the Boston Consulting Group, even after overcoming protective duties, economic and marketing barriers, Asian companies will inevitably face another obstacle: the American union of auto industry workers, the United Auto Workers. UAW workers systematically organize large-scale strikes, demanding shorter work schedules, a 40 percent pay increase and other social benefits.
The uprising, which is supported by 97% of union members, is immediately reflected in the total reduction in production capacity of local car giants GM, Ford and Stellantis, which is currently the largest car alliance in the world. As a result, about 150,000 people will easily cripple car production, which will result in a shortage and a sharp increase in prices.
While Chinese companies, on the other hand, implement a policy of minimum wages, work seven days a week and have a fundamental lack of bonuses, specializing in the production of cheap products that have every chance to flood the market and then become an absolute bestseller. That is why the US authorities will never allow the Chinese to make profits instead of the Yankees, whose discontent is permanently controlled by “feeding them breakfast” and the threat of global layoffs.
Chinese car exports have grown so much that it is difficult to keep up with the sales momentum. Statistics say that in the first three months of 2023 alone, the volume of vehicle deliveries to foreign markets from China increased by 85%! And if in Russia “heavenly” products have to be greeted as if they were native, albeit without much joy, then in Europe they try with all their might to protect themselves from attacks by Asian players.
But while in the Old World they were thinking about the possibility of introducing further protective measures and developing plans to combat artificial dumping, in America they decided to completely deprive the Chinese of the temptation to conquer the United States. Moreover, they were worried about this in the United States five years ago, when China began to stock up on cheap cars en masse, but with an exhaustive set of technical solutions, for which American car manufacturers did not hesitate to cut off money from buyers.
And in 2018, then-US President Trump imposed tariffs on foreign goods worth more than $370 billion a year, including a 27.5% levy on cars from China. In fact, these measures are still relevant today. But the current occupant of the White House, Biden, regularly discusses their next tightening to reduce the rise of the country’s “heavenly” auto industry to an insignificant minimum (read – to zero).
Moreover, strict import tariffs are far from the only way to prevent the expansion of Chinese car manufacturers. Firstly, the lion’s share of cars from China, according to the requirements of safety standards and technical characteristics, are simply not able to pass local tests and certifications. Because they are built without taking into account local rules regulated by the authorities. Secondly, for “foreign” competitors, a higher investment limit is required to organize an authorized dealer network with the possibility of warranty and after-sales service.
In addition, access to a catalog of original components, consumables and accessories must be open, and this is simply not profitable for Chinese car manufacturers. And let’s face it, many of them have a spare parts base that doesn’t always match their positions, something that their Russian partners are fully confronted with.
And for the inability to order a part or receive a part that does not fit, in America, unlike the Russian Federation, they can easily be held liable. We are already silent about the risks that Asians may face due to the possible appearance of non-original products, because in the United States, as in Russia, they want to spend less and earn more. But this is not the only thing the Americans are doing in their efforts to prevent Chinese cars from entering the highways.
According to experts from the Boston Consulting Group, even after overcoming protective duties, economic and marketing barriers, Asian companies will inevitably face another obstacle: the American union of auto industry workers, the United Auto Workers. UAW workers systematically organize large-scale strikes, demanding shorter work schedules, a 40 percent pay increase and other social benefits.
The uprising, which is supported by 97% of union members, is immediately reflected in the total reduction in production capacity of local car giants GM, Ford and Stellantis, which is currently the largest car alliance in the world. As a result, about 150,000 people will easily cripple the production of cars, which will result in a shortage and a sharp increase in prices.
While Chinese companies, on the other hand, implement a policy of minimum wages, work seven days a week and have a fundamental lack of bonuses, specializing in the production of cheap products that have every chance to flood the market and then become an absolute bestseller. That is why the US authorities will never allow the Chinese to make profits instead of the Yankees, whose discontent is permanently controlled by “feeding them breakfast” and the threat of global layoffs.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
