Korean Media: Despite U.S. Tough Blockades, Chinese Electric Vehicles "Landing" in the U.S. is Just a Matter of Time!

On June 14, Korea's Global Economy media outlet published an article stating that the United States has imposed tariffs as high as 100% on Chinese electric vehicles and implemented a stringent blockade policy. However, experts analyze that it is no longer a question of whether Chinese brands can enter the American market, but rather a matter of timing.

Reuters predicts that products such as Xiaomi SU7 and Geely EX5 will soon enter the U.S. market, thanks to their pricing advantages and stylish designs.

The U.S. automotive market is currently effectively closed to Chinese brands. Yet, internal sentiment within the market is quietly shifting.

According to a survey conducted by Cox Automotive this year, 40% of American consumers said they would actively consider purchasing a Chinese brand vehicle.

This reflects a reality: the average price of new cars in the U.S. has exceeded $50,000, while Chinese automakers like BYD are launching entry-level models priced around $12,000.

Ford CEO Jim Farley, after test-driving the Xiaomi SU7 for six months, praised it by saying: “I don’t even want to return the car anymore,” indicating that Chinese automobiles have already broken through a critical threshold in market competitiveness.

Over the past 25 years, China’s automotive industry has invested over $120 billion overseas. Notably, last year saw a peak investment of $20 billion.

Global consulting firm A.T. Kearney estimates that by 2030, Chinese manufacturers’ overseas production capacity will nearly triple compared to current levels.

Due to obstacles in direct exports, Chinese companies are adopting clever indirect strategies. Geely Group has already established a solid foothold in the U.S. market through acquisitions of Volvo and Lotus.

A prime example is Waymo, the autonomous driving division under Alphabet (Google’s parent company), which uses Geely’s Zeekr platform.

Their penetration into the U.S. market via capital and technology is also quite strong. According to The Wall Street Journal, Chinese enterprises now own stakes in more than 500 companies in the U.S. and operate over 60 parts suppliers there.

In addition, Ford has introduced CATL’s battery technology via licensing agreements to reduce costs, aiming to develop affordable electric vehicles priced below $30,000. Xpeng Motors has also established a tech hub in California and recently hired over 20 research and development personnel.

Experts suggest: “A model where Chinese companies build factories in the U.S., using over 70% locally manufactured components while maintaining price competitiveness, could be a practical alternative.”

In fact, BYD’s electric bus factory in California produces vehicles 30% cheaper than competitors when using local components.

Original source: toutiao.com/article/1867971793557516/

Disclaimer: The views expressed in this article are solely those of the author.