Sino-US trade war is imminent: What impact will new energy vehicles have?

On March 22, US local time, Trump formally signed a memorandum, saying that based on the results of the “301 investigation,” it will impose large-scale tariffs on imports from China and restrict Chinese companies from investing in the United States. The scale of Chinese commodities involved can reach 60 billion U.S. dollars

Trump ignites the trade war The global economy is implicated

The Chinese Ministry of Foreign Affairs and the Ministry of Commerce promptly responded. At 7:00 a.m. on March 23, the Ministry of Commerce of the People's Republic of China issued a list of discontinuation concessions for U.S. imports of steel and aluminum products 232 measures and solicited public opinions. It intends to impose tariffs on certain products imported from the United States. The taxation list involves the United States China’s exports amount to about 3 billion U.S. dollars in order to balance the losses caused by the United States adding tariffs on imported steel and aluminum products to China’s interests.

The Chinese side further stated that if the United States continues to formulate a list of Chinese imports that impose tariffs within 15 days, the Chinese side will also propose a further counter-action checklist. The checklist will involve similarities in terms of the size and amount of goods listed by the United States.

Trump said that once the news of large-scale taxation of Chinese imports was announced, he exploded in the two countries. Most traders expressed concern about this trade war provoked by Trump. Even the collective opposition of the European Union and the U.S. mainland will affect the world’s trade war with a very large extent. Economic growth has even led to a global economic depression. The US taxation of China currently includes medical devices, biomedicine, new materials, aviation, railways, new energy vehicles and other high-tech products. The impact in the transportation sector, especially the hot new energy vehicles, the trade war is imminent, and it will definitely have a significant impact on the new energy vehicles that are rapidly developing.

U.S. may lose China's huge new energy vehicle market

The trade war initiated by the United States unilaterally, although not directly aimed at the auto industry, the impact on the new energy auto market is inestimable. With the growing shortage of petrochemical resources, the development of new energy vehicles has become a global trend. As the world’s largest producer and seller of new energy vehicles, China and the United States, the trade war is imminent, which will have an impact on the two parties’ new energy automobile market. What?

The reliance of US auto companies on the Chinese market can be said to have reached an unprecedented height, so the first thing that must be affected is the American automaker. The dependence of US car sales on the Chinese market has made its president’s “good intentions” more like a hot potato. Ford and other car companies have been lobbying the Trump administration, hoping to minimize tariffs on China and avoid affecting China’s development in the world’s largest auto market. The Global Automobile Manufacturers Association in Washington also expressed concern.

China's new energy car companies face major challenges in import and export
Of course, any trade war will not be the only one to suffer losses and the other will win. The strong sales figures are followed by China’s huge import and export demand for parts and components. Both markets, including new energy vehicles, will surely be affected and affected. Cui Dongshu, secretary general of the CLUCC National Committee, believes that many of China's auto parts come from international sources. Imported raw materials of auto parts companies are exported after being produced in China, so the impact is widespread. According to the data, about 25% of China's auto parts are exported to the United States, with mainly wheels and tires, while the United States accounts for 7% of imported parts, mainly for transmission systems, body accessories, and engine parts. These parts and components also precisely affect China's rapidly developing new energy automotive industry. This is why Trump seized the auto industry.

For Chinese new energy car companies that are actively preparing to enter the U.S. market, on the one hand, the trade war will prompt some new energy car companies to upgrade and force the technological innovation of China's own brands, such as lowering costs and increasing energy density in the battery field. Fill short boards and so on.

Taking BYD as an example, BYD's R&D, investment, and achievements in the field of new energy vehicles have been at the leading position in the industry, and its business coverage in foreign markets is also relatively extensive. Last year, the United States also purchased 60 pure electric buses from BYD's factory in California, which achieved the single largest single electric bus order in the history of the United States. New energy car companies such as Weilai Automobile have previously indicated that they will have plans to enter the US market in the future. The car and family that have just received a new round of financing have already started a new energy sharing business in San Francisco... and Trump's trade The war will also have a certain degree of influence on these autonomous auto makers in China