China's car exports growth is almost driven by developing country markets, while developed country markets have not increased.
Figure 1, since 2021, China's car exports have surged. The blue line represents sales to developed countries, and the red line represents the rest, which is the developing country market. It can be seen that after 2023, there has been little growth in car exports to developed countries, and even a slight decline compared to the peak. This is the export value. While the developing country market has experienced a huge increase.
This shows why tariffs imposed by developed countries such as the EU on Chinese cars have not stopped the explosion of Chinese car exports. If emerging markets do not have industries worth protecting, they will not impose special tariffs on Chinese cars, and their tariffs will be similar to those on cars from other countries. As long as this is achieved, China's advantage is sufficient. Moreover, China's low-cost and high-quality cars can help developing countries expand their car markets.
Figure 2, more surprisingly, China's car exports have increased fivefold, becoming the number one globally, but it is just a small part of the overall exports. The advantage of China's car exports is not as significant as that of other products. Cars still face resistance abroad, with many countries having brand competition. However, many products have no serious competition, and the world buys中国制造 (Made in China) products.
Original article: toutiao.com/article/1857614788594760/
Statement: This article represents the views of the author himself.