Chinese EVs stalled by US, EU import controls as analysts warn this is ‘just the beginning’
- Moves from the US and European Union to control import of Chinese cars, particularly electric models, seen as first salvo in a larger stand-off
- Analysts predict more restrictions on the way as governments look to protect domestic industries and limit China’s market share
The US government is increasing its scrutiny over imports of Chinese-made motor vehicles, especially electric variants, joining Europe in jousting with China over suspected breaches of labour laws – all while working overtime to protect domestic industries, analysts said.
Washington’s concern became evident on Wednesday when, according to the Financial Times, US customs offices impounded thousands of European cars because of the inclusion of a Chinese subcomponent, which authorities said was a violation of its laws against forced labour.
The action by US customs complements federal and state subsidies for electric vehicles (EVs) made in North America and probably foreshadows further measures in this vein, said Yan Liang, chair of economics at Willamette University in the United States.
US tariffs on automotive imports from China remain “high”, she added, with EVs levied at 25 per cent.
This is only going to increase, both in Europe and the US … this is just the beginning
Washington and Beijing have sparred over trade and technology for the past six years, raising tariffs on a wide range of goods.
