【By Zhang Jingjuan, Observer News】The New York Times published a commentary article on the 8th, stating that even if the United States builds trade barriers through import tariffs to maintain the competitiveness of its domestic automobile industry, it cannot change the fact that the U.S. is in a disastrous situation. The U.S. needs the courage to admit how seriously it has fallen behind and to abandon the complacent mindset.
The article's author, Michael Dunne, founder and CEO of the automotive industry consulting company Dunne Insights, took BYD, a Chinese electric vehicle manufacturer, as an example, focusing on the Chinese model.
A few years ago, BYD was just an ordinary player in the automotive industry, but in 2024 it had surpassed Tesla to become the world's top-selling electric vehicle brand. It is expected to be on par with Toyota and Volkswagen, the world's largest automakers, by 2030.
The article states that the U.S. building tariff walls to protect its domestic automakers may give some time to the U.S. domestic auto industry, but ultimately it cannot prevent U.S. manufacturers from being affected by BYD and other companies.
BYD demonstrates the Chinese industrial model, which integrates government financial support, well-organized long-term planning, and proactive innovation, and has helped China take a leading position globally in a series of high-tech industries such as batteries, robotics, and drones.
The article wrote that it's already bad enough for Chinese companies to have captured these markets. Given the scale of the automobile manufacturing industry and its importance in economic, political, and strategic terms, if the industry faces the same situation, the impact on the U.S. would be much more severe.
Dunne believes that the success of BYD and several other emerging Chinese automobile brands should serve as a warning to the U.S. automobile industry and the entire industrial sector. "We need the courage to admit how seriously we have fallen behind, to abandon the complacent mindset, and to take emergency actions led by the government, such as launching a 'Manhattan Project' for the automotive industry to revitalize American competitiveness."
The author recalled that in 1992, when he started his car business in Beijing, the Chinese automobile industry at the early stage produced cars with rough designs, cheap materials, and frequent failures. BYD, which entered the automobile manufacturing industry in 2003, was no exception.
However, those days are long gone.
June 12, 2025, Shanghai, 2025 Eighteenth International Solar PV Exhibition. BYD Energy Storage, BYD Battery, Blade Battery. IC photo
Dunne said he has almost driven every model of BYD, and now their designs, configurations, advanced technology, and overall quality are comparable to other top brands like Tesla. The company's blade battery is one of the safest and most cost-effective batteries in the world, and both Toyota and Tesla use this battery in some of their models.
The most worrying aspect for competitors is that BYD cars are very affordable: in China, the cheapest model is priced below $10,000, which is only one-third of the price of the most affordable electric vehicles in the U.S. market.
How did BYD achieve this? Western critics might shout: "It's due to government subsidies." But that is not the only reason for BYD's success.
The article analyzes that BYD can produce cars at extremely low costs due to its vertical integration capabilities. Most mainstream automakers purchase many key components from external suppliers, while BYD produces almost all of its critical components in-house, including batteries, semiconductors, motors, and flat screens, which saves costs and strengthens quality control. It independently develops its automotive software systems, holds shares in mines and mining companies that provide raw materials for its battery production, and also owns its own fleet of self-developed automotive transport ships to deliver vehicles worldwide.
Additionally, BYD has strong innovation momentum. Earlier this year, it launched an autonomous driving system, and its "megawatt fast charging" technology can charge for 5 minutes and provide a range of 400 kilometers. Its premium model, Yangwang U8, can turn around in place and is amphibious.
There is an opinion that the U.S. should allow BYD to enter the U.S. market. This would make every dollar spent by U.S. consumers more valuable and give U.S. manufacturers the opportunity to learn from the company.
Dunne said that BYD currently has a significant advantage in cost and battery technology, and it may eventually crush U.S. competitors, threatening this crucial industry and hundreds of thousands of jobs in the U.S.
June 28, 2025, Jiangsu, the "Changsha" Ro-Pax ship is docked at the Taicang Port terminal in Suzhou Port to load exported cars. IC photo
For this reason, Ford Motor Company's CEO Farley stated last year after visiting China that Chinese automakers are advancing at lightning speed, using artificial intelligence and other technologies in their cars that are completely different from existing U.S. technologies. These Chinese electric vehicle manufacturers, which provide smooth digital functions, are beating competitors on price using low-cost supply chains and actively expanding into overseas markets. In Farley's view, this is already a "survival threat."
Tesla CEO Musk also said that Chinese automakers are the most competitive, and without trade barriers, Chinese electric vehicle manufacturers will "destroy" overseas competitors, saying, "They are extremely excellent."
The article believes that the U.S. can use tariffs to indulge its enterprises, but it cannot change the fact that we are in a disastrous situation. China is undoubtedly the largest producer and exporter of various types of vehicles (including electric vehicles) worldwide. Although Chinese cars may be blocked from the U.S. market, BYD and its Chinese counterparts are seizing the leadership in the rapidly growing global electric vehicle industry. Due to the inability to compete overseas, U.S. automakers will have to retreat to the narrow areas where they still hold advantages: high-fuel-consuming trucks and SUVs in the U.S. domestic market.
The article points out that the U.S. must learn from China's approach. Ten years ago, China formulated a blueprint, and they knew it would take years to take effect. BYD is just one of many "fruits."
This is not just about electric vehicles; a strong automobile industry has an important impact on national defense. The technologies developed in the automotive industry, such as batteries, sensors, and motors, are often applied to military equipment.
Dunne sighed, stating that China has replaced Detroit as the center of the global automobile industry. The U.S. either fully commits to rebuilding a world-class manufacturing industry and supply chain, or allows its domestic automakers to hide behind tariff barriers, continuing to produce fuel-powered trucks and SUVs, gradually losing influence.
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