‘Want to beat us back to stone age’: China fights US over electric car challenge
China is the dominant force in the world of passenger cars and its lead over second-placed United States (US) has been unwavering in recent times. And while the pace of increase in demand for cars in the domestic market has slowed down in recent times - prompting the Chinese government to chalk out a 10-step plan, the country has also targeted the Americans for what it says is systematic targeting of Chinese car companies.
Chinese car and technology-based companies have been increasingly looking at spreading wings to foreign markets, including the US. But there have been reservations within the US with the Joe Biden administration carrying out the Inflation Reduction Act (IRA) which entails special incentives on electric models manufactured in North America. More recently, two US House of Representatives committees said that the partnership between Ford and Chinese battery company CATL is under investigation.
China sees this as ‘negative-sum competition mentality’. In an editorial piece in the state-run Global Times, it is claimed that many American politicians have an ‘anti-China’ mentality. "If Washington wants to "ensure its own advantages" by snuffing out every technological advancement in China, it will fall into endless self-torture. The arrogance of "beating China back to the Stone Age" and "China is only allowed to produce shirts and socks" is even more idiotic," the scathing editorial piece reads.
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The battle in the fast lane
Several American companies compete in the highly-lucrative Chinese auto market with the list including GM, Ford and Tesla. Tesla, in fact, opened its first plant outside of the US in Shanghai and the facility serves as the base for units not just for the local market but for Europe as well. There were also reports that Tesla could export China-made cars to the US but this has been denied by CEO Elon Musk since.
Having a forceful say in the Chinese car market is an ideal goal to have but it is far easier said than done. A number of global players have to compete with ever-strengthening local names to find favour among buyers. The competition is even more intense when it comes to EVs.
And not only are local EV brands in China playing a strong game here, many are now looking to conquer foreign shores as well. BYD is one such name, Geely - owner of Volvo brand - is another. Many like NIO have, however, accused the US of being guilty of protectionism.
The battle is not just hotting up then, it is now firmly in the fast lane with traditional global giants looking at ways to not just expand presence in China but to beat back Chinese brands on a global stage as well.
