China is committing to assist its electric vehicle (EV) manufacturers in navigating international trade restrictions and establishing overseas supply chains as part of a comprehensive global expansion initiative for the industry.
This commitment comes in response to growing protectionist resistance faced by China’s flourishing EV exports in various regions, notably in Europe and the United States.
The Chinese Commerce Ministry recently shared a document, signed by nine government agencies, including the Foreign Ministry and the central bank, dating back to late last year. The document outlines 18 measures aimed at supporting Chinese EV manufacturers in their endeavors to expand globally.
Among these measures, the agencies pledge to help Chinese companies effectively address foreign trade restrictions by staying abreast of policies and regulations related to market access, environmental protection, data protection, and intellectual property protection. The document emphasizes the importance of compiling and issuing country-specific trade guidelines in a timely manner.
Additionally, the document encourages Chinese EV companies to engage in collaboration with foreign manufacturers in technology and to establish supply chains that foster mutual benefits for all involved parties.
The agencies also committed to aiding Chinese companies in enhancing their capabilities for overseas compliance. Despite facing restrictions in key markets such as the United States, Chinese electric vehicle (EV) manufacturers are making significant global strides. Their cost-effective vehicles have gained traction in regions like Europe, Australia, and Southeast Asia.
In the previous year, Chinese firms shipped over 1.2 million new energy vehicles globally, marking a substantial 77% increase from 2022, as reported by the China Association of Auto Manufacturers. This surge propelled China to become the world’s leading vehicle exporter, surpassing Japan for the first time. In 2023, China exported a total of 4.91 million vehicles, exceeding Japan’s 4.42 million, according to data from industry groups.
Chinese electric vehicle (EV) manufacturers are actively seeking alternative avenues for growth overseas due to challenging conditions in the domestic market. The slowdown in the domestic economy, coupled with an intensified price war fueled by excessive competition, has prompted these companies to explore international expansion.
Shenzhen-based BYD, for instance, surpassed Tesla as the world’s leading EV seller at the end of the previous year, marking a remarkable ascent for the Chinese automaker. In a bid to further its global footprint, BYD announced plans in January to establish an EV factory in Hungary, expanding its supply chain in Europe.
The influx of more affordable Chinese vehicles has sparked trade tensions with certain countries. In October, the European Commission initiated an anti-subsidy investigation into EV imports from China. Meanwhile, the Biden administration in the United States introduced new regulations in December to restrict the use of Chinese batteries in domestically sold cars. Discussions are also underway to potentially increase tariffs on specific Chinese goods, including electric vehicles, with the aim of fortifying the U.S. clean-energy industry against the competition posed by more economical Chinese products, as reported by the Wall Street Journal in December, citing anonymous sources.’
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