Technologically, “it’s created a level playing field,” he says.Ĭhina’s Rapid Gain in Competitive Advantage “The switch to battery means the motor is no longer a differentiator,” says Alexander Klose, executive vice president for overseas operations at Aiways Automobiles Co., a pure-Chinese EV maker, which has sold several thousand vehicles in Europe. By shifting to more complex and sophisticated products for competitive, highly regulated markets, Chinese companies are moving up the value chain in manufacturing-a key driver of growth that transformed the once-struggling communist economy into today’s quasi-capitalist $18 trillion juggernaut. The trend underscores that China has moved beyond being the “world’s factory” for low-cost consumer electronic devices, appliances and Christmas toys. The target is to sell 8 million passenger vehicles overseas by 2030-more than twice Japan’s current shipments, he says. It’s just the beginning, according to Xu Haidong, deputy chief engineer at the state-backed China Association of Automobile Manufacturers. Backed by Warren Buffett’s Berkshire Hathaway Inc., BYD is already charming EV buyers in developed countries such as Australia. are ascending as well, with ambitions to dominate the world of new-energy vehicles. and Chinese-owned former European brands such as Volvo and MG, and European brands like Dacia Spring or the BMW iX3, which is produced exclusively in China. In Europe, the China-made vehicles sold are mostly electric models from Tesla Inc. China’s numbers, behind Japan but ahead of the US and South Korea, herald the emergence of a formidable rival to the established auto giants.Ĭhinese brands are now market leaders in the Middle East and Latin America. That’s only a whisker (about 60,000 units) behind Germany, whose exports have fallen in recent years. Overseas shipments of cars made in China have tripled since 2020 to reach more than 2.5 million last year, according to data from the China Passenger Car Association. The US Hasn’t Noticed That China-Made Cars Are Taking Over the Worldīloomberg reports The US Hasn’t Noticed That China-Made Cars Are Taking Over the World This thread was inspired both by this Bloomberg story, and the EU's current freakout over the IRA (& its long silence over China's obviously discriminatory policies in the EV sector, which have had a much bigger impact on EU auto exports and employment) I suspect that you need a Ph.D in political science - or perhaps psychology and trade law □ - to understand why the Commission's main response to a surge in Chinese competition (primarily in EVs) has been to threaten to challenge the US in the WTO … (China has been a net exporter of auto parts for some time) Brad Setser has an interesting thread on China’s sudden surge in car exports.Ĭhina has gone from a large net importer of finished (mostly from the EU, the Japanese firms never thought they could sell in China w/o producing in China) to a net exporter remarkably quickly …
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