Trump’s trade war tariffs will thwart Chinese carmakers’ dreams of breaking America, analysts say
- Improved manufacturing techniques had finally given Chinese carmakers the potential to compete in the US … but then the trade war came along
For China’s car manufacturers, clinching the title of “world’s most productive” is a goal long since attained. The country has been by far the biggest auto market on the planet since 2010.
But a decade-long drive to replicate that success on the international stage has so far failed to bear fruit. Just 3 per cent of the vehicles produced in China were shipped overseas last year.
The big dream was always breaking the American market, and indeed the number of cars exported there had been increasing rapidly in recent years. Now it seems the trade war may have spoiled the party.
“The dream of landing on the American market will never come true for Chinese carmakers,” said Cui Dongshu, secretary general of the China Passenger Car Association (CPCA).
“Globalisation is no longer a topic for Chinese carmakers because no real progress has been made over the past decade.”
Just a few years ago, Chinese carmakers were not ready to enter the US market, in the face of strict safety standards and a lack of brand awareness.
But thanks to improved manufacturing techniques and various marketing campaigns, Chinese carmakers had become poised to at least start to compete in the US.