China’s Drive for Global EV Dominance and the Roadblocks It’s Facing, in Charts.
China’s Drive for Global EV Dominance and the Roadblocks It’s Facing, in Charts © Uncredited
Europe’s tariffs are the latest move by nations pushing back against imports from world’s biggest producer
Story by Clarence Leong - The Wall Street Journal
The push by Chinese electric-vehicle makers to export their made-in-China vehicles is running into roadblocks just a few years after it got going, owing to moves by countries around the globe to impose tariffs and other restrictions.
On Friday, European Union member states voted to impose tariffs of up to 45% on electric cars made in China.
Here is how the world’s biggest EV-producing nation has hit trouble overseas—and what its carmakers are doing to get around it.
- Ramping up exports
China’s surging EV production helped its carmakers reduce costs and become more competitive. With capacity outpacing demand at home, they began looking overseas in recent years.
- The response: tariffs
Countries seeing a surge in imports of made-in-China EVs have often responded with more tariffs. Brazil raised its tariffs on battery EVs to 18% in July from 10%. The tariff will rise again to 35% in July 2026.
Turkey has imposed an additional 40% duty on electric cars from China since July, while in Canada, a 100% tariff on Chinese-made EVs took effect Oct. 1.
The U.S. imports relatively few Chinese-made EVs and has already acted to make sure that remains the case. The Biden administration this year imposed a 100% tariff on Chinese EVs.
- Export growth slows
Brazil is an example of a country where higher tariffs have caused a sharp drop in its imports of made-in-China EVs. Imports in the EU have also stopped rising while in some other markets such as Mexico and Canada imports from China have still been growing.
- Building EV factories outside of China
In the past year, many Chinese companies have stepped up moves to build or invest in car production overseas to avoid tariffs. One example: BYD, the biggest Chinese EV maker, will build a factory in Turkey with an annual capacity of 150,000 vehicles, to open in 2026, the government said in July.
source : written by : clarence.leong@wsj.om