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At first glance, it seems that America has long and reliably shielded itself from the expansion of the Chinese auto industry, and local manufacturers have nothing to worry
The US auto market is protected from Chinese electric vehicles by a veritable economic fortress wall. First, the import of any vehicle from China to the United States is subject to a 25% customs duty. Moreover, it is taken into account even if the car, according to the documents, is listed as assembled in friendly Mexico. Secondly, a special tax discount applies when purchasing an American electric train. With its help, the retail price of an electric vehicle in the showroom is reduced by $7,500. In practice, this means, for example, that the cheapest electric car on the North American market, the Chevrolet Bolt EV, immediately drops in price from €26,500 to €19,995.
Characteristically, even with such government support measures, by the summer of 2023 the average price of an electric car in the US market was over $53,000 – about $23,000 more than for a comparable model with an internal combustion engine.
Be that as it may, but in the presence of the economic crutches described above, it seems that Chinese cars in the United States have no chance in the fight against the “locals” and the authorities do not have to worry about it welfare. of the American auto industry. But this is on the surface. Indirect signs indicate that there are some reasons for alarm that are unknown to the general public. Moreover, it seems that they are very serious, judging by the intensity of the new protectionist measures urgently taken.
For example, on October 6, 2023, the Treasury Department and the US Internal Revenue Service agreed to introduce another benefit for electric vehicle buyers. From January 1, 2024, an additional “state cashback” will come into effect for every buyer of an electric train – amounting to $7,500 for a new car and $4,000 in the case of purchasing a used car.
And recently, the Wall Street Journal learned that President Biden’s administration is discussing plans to impose new duties on Chinese electric vehicle imports in spring 2024 to protect electric vehicle manufacturers. Apparently the latter are not doing well in this area.
In fact, America is now expressing much the same attitude and fear about the growing global expansion of the Chinese auto industry as European officials. The latter recently decided to launch an anti-dumping investigation against Chinese electric vehicles in their market. Because local automakers don’t compete on price with hard-nosed Asians.
It is funny to observe such protective movements in the markets of the “leading economies of the world” in relation to Middle Kingdom companies. After all, absolutely all European and American suppliers of electric vehicles are strictly “tied” to the Chinese industry. According to Bloomberg, by 2022 China would therefore have about 75% of the world’s battery production capacity and about 90% of the production of electrolytes and battery anodes.
That is, if something happens, the Chinese can immediately “turn off the tap” on the supply of such components. Or, at the behest of their party and government, raise prices for all this equipment – if they enter into a full-fledged economic battle with the United States and the collective West. Overall, the plot spins quite funny. At this rate, you see, we’re getting to the “first electric car war”…
The US auto market is protected from Chinese electric vehicles by a veritable economic fortress wall. First, the import of any vehicle from China to the United States is subject to a 25% customs duty. Moreover, it is taken into account even if the car, according to the documents, is listed as assembled in friendly Mexico. Secondly, a special tax discount applies when purchasing an American electric train. With its help, the retail price of an electric vehicle in the showroom is reduced by $7,500. In practice, this means, for example, that the cheapest electric car on the North American market, the Chevrolet Bolt EV, immediately drops in price from €26,500 to €19,995.
Characteristically, even with such government support measures, by the summer of 2023 the average price of an electric car in the US market was over $53,000 – about $23,000 more than for a comparable model with an internal combustion engine.
Be that as it may, but in the presence of the economic crutches described above, it seems that Chinese cars in the United States have no chance in the fight against the “locals” and the authorities do not have to worry about it welfare. of the American auto industry. But this is on the surface. Indirect signs indicate that there are some reasons for alarm that are unknown to the general public. Moreover, it seems that they are very serious, judging by the intensity of the new protectionist measures urgently taken.
For example, on October 6, 2023, the Treasury Department and the US Internal Revenue Service agreed to introduce another benefit for electric vehicle buyers. From January 1, 2024, an additional “state cashback” will come into effect for every buyer of an electric train – amounting to $7,500 for a new car and $4,000 in the case of purchasing a used car.
And recently, the Wall Street Journal learned that President Biden’s administration is discussing plans to impose new duties on Chinese electric vehicle imports in spring 2024 to protect electric vehicle manufacturers. Apparently the latter are not doing well in this area.
In fact, America is now expressing much the same attitude and fear about the growing global expansion of the Chinese auto industry as European officials. The latter recently decided to launch an anti-dumping investigation against Chinese electric vehicles in their market. Because local automakers don’t compete on price with hard-nosed Asians.
It is funny to observe such protective movements in the markets of the “leading economies of the world” in relation to Middle Kingdom companies. After all, absolutely all European and American suppliers of electric vehicles are strictly “tied” to the Chinese industry. According to Bloomberg, in 2022 China would therefore have about 75% of the world’s battery production capacity and about 90% of the production of electrolytes and battery anodes.
That is, if something happens, the Chinese can immediately “turn off the tap” on the supply of such components. Or, at the behest of their party and government, raise prices for all this equipment – if they enter into a full-fledged economic battle with the United States and the collective West. Overall, the plot spins quite funny. At this rate, you see, we’re getting to the “first electric car war”…
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.
