Tariffs on Chinese-made EVs will increase pressure on both foreign and domestic automakers in China
Sun Lei, Senior Partner, Beijing Dacheng Law Offices
The imposition of tariffs on Chinese electric vehicles will have a significant near-term impact on automakers like Tesla that have invested in building factories in China. For example, if these tariffs are imposed, Tesla’s Chinese-made cars could only be sold in China or other markets outside the U.S., increasing the fixed costs associated with the company’s operations.
For Chinese companies, the policy increases the pressure to shift investments and the need for faster decision-making. This will affect not only the electric vehicle industry, but the entire automotive supply chain. The shift of auto assembly and production to other countries could affect related sectors, including steel and aluminum, engine technology, and lithium batteries.
