Regarding China's electric vehicles, the US and the West are unprecedentedly united, and China is isolated?

07/23 2024 605

The United States took the lead in imposing tariffs on Chinese electric vehicles, increasing the tariff rate from the original 25% to 100%, and ultimately reaching a practical maximum of 102.5%, the highest in history.

Next, the European Union imposed provisional countervailing duties on electric vehicles imported from China, on top of the previous 10% tariff, proposing to impose provisional countervailing duties ranging from 17.4% to 38.1%, for a total maximum tax of nearly 50%.

In fact, it's not just the United States and the European Union, but other Western countries have also begun to impose tariffs on Chinese electric vehicles. In dealing with Chinese electric vehicles, there is unprecedented unity among them, and they cannot allow Chinese electric vehicles to enter their domestic markets, isolating China.

Why are they so united this time? The reason is simple: they are vested interests in fuel vehicles. Now the entire automotive industry is undergoing a transformation, shifting from fuel vehicles to electric vehicles.

Both the United States and the West lag far behind China in electric vehicles. Biden himself has acknowledged that China is the global leader in electric vehicles.

We know that the automotive industry is often referred to as the crown of industry due to its complex supply chain, high value, and status as one of the essential engines of economic growth.

Over the past years, the United States and Europe have earned substantial profits globally through fuel vehicles, while China, as the world's largest automotive market, has paid dearly for importing fuel vehicles from the West, including the United States and Europe.

However, with the rise of Chinese electric vehicles, their penetration rate has exceeded 50%, leading to a significant decline in sales of Western fuel vehicles in China, making them increasingly difficult to sell and resulting in heavy losses.

Not only that, but China is also exporting electric vehicles to the United States and the West, competing for market share.

Both the United States and the West are no match for China in the field of electric vehicles because China leads not only in electric vehicle manufacturing but also in the entire supply chain.

From lithium batteries and almost all core products and components in the lithium industry chain to autonomous driving technology and smart cockpit technology, China is ahead, and the West is not a competitor.

Therefore, under such circumstances, the United States has to consider "isolating" China's electric vehicle industry from Western countries as a whole and attempting to build its own independent supply chain and a "Great Wall" of blockade that can compete with China.

The United States hopes that Western countries will join it in isolating Chinese electric vehicles to prevent them from affecting the automotive industry in the West.

But the question is, will imposing tariffs really work? In my opinion, it's nothing more than closing the country off and falling further behind China. After all, China calls the shots in the electric vehicle supply chain, and isolating China is essentially alienating oneself from the world's most advanced technologies.

Solemnly declare: the copyright of this article belongs to the original author. The reprinted article is only for the purpose of spreading more information. If the author's information is marked incorrectly, please contact us immediately to modify or delete it. Thank you.