China could flood America’s electric-vehicle market with cheap offerings
by Brian Neeley March 7, 2024 in Market
China could flood America’s electric-vehicle market with cheap offerings
US Energy Secretary Jennifer Granholm speaks to reporters during a press briefing at the White House in Washington on June 22, 2022.
Kevin Lamarck | reuters
Energy Secretary Jennifer Granholm warned Wednesday that China could flood the U.S. electric-vehicle market with low-cost offerings, weeks after President Joe Biden raised similar concerns.
“We are very concerned that China is gaining a massive foothold in our industry in the U.S. while we are now building this incredible backbone of manufacturing,” Granholm said during a discussion panel at an Axios event. “
China is considered a threat to the US auto industry as US vehicle exports have declined and companies such as General Motors have cut international operations.
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“We saw this happen in the solar industry… the market was flooded,” Granholm said.
Data from the China Association of Automobile Manufacturers show China exported nearly 5 million vehicles in 2023, overtaking Japan to become the world’s No. 1 country in car exports in 2023.
Fitch Ratings in December said Chinese EV makers are also releasing new models in record time, and the outlook for Chinese automakers remains stable despite increasing competition.
“China is making huge amounts of investment with the aim of driving scale, so we need to understand that it’s important for people to buy EVs in an affordable way, but we can do that and we can do that with our,” Granholm said. Can keep the country safe.”
The White House last month said the US was investigating whether Chinese vehicle imports pose a national security threat because they could collect sensitive data about US citizens and infrastructure and send it to China Are.
“China’s policies could flood our market with its vehicles, threatening our national security,” US President Joe Biden said in a statement. “I will not let this happen on my watch.”
The US is attempting to boost the domestic EV supply chain through the Inflation Reduction Act, which provides tax credits for vehicles that undergo final assembly in North America, subject to meeting critical mineral and battery component requirements, among other conditions. Does.
EVs whose battery components are manufactured or assembled by a “foreign entity of concern” namely China, Iran, North Korea and Russia are not eligible for tax incentives.
Granholm said, “We also know that if it’s made in America and with stimulus through the Inflation Reduction Act, we can bring those price points down and we’ve seen EV consumption double in the last year and that Even more are anticipated.”
In recent years, America has been increasing pressure on Chinese companies.
In October 2022, it introduced rules aimed at restricting China’s ability to access, acquire or manufacture advanced semiconductor chips, amid concerns that China could use them for military purposes.
Last year, the US announced new rules to prevent American chip designer Nvidia from selling advanced AI chips to China.
The US Senate voted on Wednesday to approve a bill that could restrict business with Chinese biotech firms such as Wuxi AppTech and BGI over national security concerns.
Source: www.cnbc.com
