Chinese electric vehicle makers set to ‘crack open’ Western markets as trade barriers fall

Canada will drop the 100 per cent punitive tariffs on Chinese-made pure electric cars while setting an annual import quota of 49,000 units

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Ora cars from Great Wall Motor are parked in a parking lot at JadeWeserPort in Germany. Photo: dpa

Published: 3:00pm, 18 Jan 2026

This year is likely to be a watershed one for the global drive by Chinese electric vehicle (EV) makers, as more Western countries open up their markets to high-performance made-in-China models.

Despite low expectations for a hefty jump in overseas sales, EV assemblers like BYD and Geely are expected to get off to a strong start in some of their untapped markets, honing their image as world leaders in terms of production and technology before establishing a long-term foothold, according to industry officials and analysts.

“Policy shifts in the European Union (EU) and Canada have offered a ray of hope for Chinese EVs to crack open major Western auto markets,” said Qian Kang, who owns a factory that makes automotive printed circuit boards in eastern Zhejiang province. “It is the time to focus on brand building and quality control to impress local consumers.”

Canada will drop the additional 100 per cent punitive tariffs it levied on Chinese-made pure electric cars while setting an annual import quota of 49,000 units, Canadian Prime Minister Mark Carney announced on Friday after wrapping up his state visit in Beijing. However, it will retain a tariff rate of 6.1 per cent on Chinese battery-powered cars, most of which feature driving ranges longer than 500 kilometres and sophisticated in-car entertainment systems.

Electric vehicles for export are seen at a port in Hangzhou, in eastern China’s Zhejiang province on April 2, 2025. Photo: AFP

The decision came less than a week after the EU and Beijing announced that they had reached a consensus to replace tariffs of between 7.8 per cent and 35.3 per cent with price undertaking agreements, facilitating higher profit margins for Chinese EV makers as they ramp up their pace of international expansion.

Chinese electric vehicle makers set to ‘crack open’ Western markets as trade barriers fall

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Canada will drop the 100 per cent punitive tariffs on Chinese-made pure electric cars while setting an annual import quota of 49,000 units

Canada will drop the 100 per cent punitive tariffs on Chinese-made pure electric cars while setting an annual import quota of 49,000 units