With Earth Day just around the corner, it’s an electric week at Auto123 as we turn the lights towards noteworthy developments in the EV segment.
The possible arrival of Chinese electric vehicles on the U.S. market is making many people nervous. Many are saying that an influx of cheaper EVs made in China could be catastrophic for American automakers, and for the American economy at large.
Last weekend, the chairman of the Senate Banking Committee chimed in on the issue. Via X (formerly Twitter), Democratic Senator Sherrod Brown called for “a complete ban on Chinese electric vehicles in America.”
We've already heard such calls about Chinese vehicles from American carmakers and other stakeholders, but this is the sharpest criticism to date expressed by an American legislator. Brown’s declaration ties in with that of Janet Yellen, US Treasury Secretary, who said earlier this week during a trip to China that the U.S. would not allow Chinese imports to flood the market again, as happened in the early 2000s with various products.
It's important to point out that, at the moment, no Chinese vehicles are being sold in the U.S., but right now there’s nothing preventing Chinese automakers from doing so – as long as they are willing to pay the steep customs fees charged on imports.
Nevertheless, the authorities are keeping a close eye on the Chinese market.
Also worth remembering: At the moment, under the Inflation Reduction Act, vehicles made in China, or made with components from certain foreign countries (like China), don't qualify for government rebates for electric vehicles within the U.S.
President Joe Biden has been repeatedly criticized for this, accused of breaking World Trade Organization rules by excluding Chinese materials.
Barriers notwithstanding, China's state-owned Chery has declared its intention to sell vehicles in the United States. However, its partner, Huawei, is banned from doing business in America. Other manufacturers, however, are freer to act.
In addition to the threat posed by the arrival of more affordable Chinese electric vehicles on the market, the issue of national security is also being raised. Chinese vehicles offering a high level of connectivity are seen as a potential threat.
As mentioned, many are concerned. Ford admits that China is winning the race for electric vehicles. For his part, Tesla boss Elon Musk has already stated that automakers BYD, Aito and Xpeng are Tesla's biggest rivals, rather than traditional auto brands.
Concern is focused on several areas, but two stand out: Substantial government investment is boosting the Chinese electric vehicle industry, and the latest models being produced in China are becoming increasingly efficient.
In Europe, these more attractive and reasonably priced EVs are attracting customers in creasing numbers; legislators in the European Union are working hard to counter the trend.
In the United States, many, like Senator Brown, would like to ban them altogether.
What do consumers think? That's a question that could start a whole new debate.