Attitude of the United States towards China

There are serious disagreements between the United States on a range of key issues, but both parties are in strong agreement when it comes to reducing dependence on China. The latest proposals from both the Republican and Democratic parties include increasing tariffs or using national security as a reason to block Chinese electric cars from entering the US market. They seem to think that it is unrealistic for Chinese EVs to be beneficial to the US.

The drawbacks of the policy

While this move may protect American jobs in the short term, it could hinder the development of electric vehicles in the United States and limit affordable access for American consumers. The Biden administration should not block Chinese electric cars from entering the US; instead, it should focus on formulating a long-term strategy.

Explanation 1

Firstly, imposing tariffs on Chinese electric vehicles may violate the rules of the World Trade Organization, which could lead to retaliatory measures from China. This could escalate the trade war and be detrimental to both countries.

Explanation 2

Secondly, using tariffs to prevent American manufacturers from importing electric vehicle batteries and components from China could increase the production costs of American electric vehicles and reduce their competitiveness. In the medium term, American car manufacturers are still unable to decouple from China because they heavily rely on components produced in China.

Explanation 3

Third, protecting the American automobile industry from foreign competition may weaken the innovation drive of American car companies and impact their ability to produce affordable electric vehicles.

Industry Status

American car manufacturers believe that small cars have thin profit margins, so they have been focusing on producing large vehicles. However, after experiencing years of high inflation, American consumers have become hesitant to spend money. As a result, the sales of large electric cars in 2023 did not meet expectations. Blocking affordable Chinese electric cars from entering the US market would be equivalent to depriving American consumers of their right to purchase affordable electric vehicles.

Call for accepting challenges

The United States’ procrastination tactics not only hinder the widespread use of electric vehicles but also impede the transition towards a sustainable green economy. Therefore, instead of banning Chinese electric cars from entering the US market, America should consider embracing them.

Solutions

Allowing the sale of affordable and reliable Chinese electric vehicles could be an effective strategy to accelerate the adoption of electric cars in the United States. Setting aside political factors, most Americans appreciate good products that offer both quality and affordability. Over the past decade, there has been a significant improvement in the quality of Chinese electric vehicles. For instance, BYD’s electric car received a five-star safety rating from the European New Car Assessment Programme in 2022.

The Biden administration does not need to block the entry of Chinese electric vehicles; instead, it can invite BYD to establish a factory in the United States and produce vehicle models similar to BYD ATTO 3.

Profound impact

Allowing more foreign car companies to manufacture cars in the United States will help promote competition in the American manufacturing industry and create more job opportunities.

Establishing partnerships with Chinese electric vehicle companies can promote innovation in the United States. Establishing joint ventures with Chinese enterprises helps both countries’ businesses learn from each other. Indeed, while Chinese people have learned a lot from Americans, Americans can also learn from the Chinese, especially in building an electric vehicle ecosystem.

Only a few Chinese electric vehicle companies have withstood the fierce competition in the Chinese market. The United States should learn from this and encourage more automotive enterprises to enter the American market, allowing the market to determine which companies embody the American spirit and can become winners in the marketplace.

So I have to say, Chinese EVs are beneficial to the US