Korean Media: U.S. Congress and Dealers' Groups Launch Intense "Anti-Chinese Cars" Campaign

¬ Chinese Automakers Accelerate Expansion into Overseas Markets

On the 4th, the American International Automobile Dealers Association (AIADA), representing over 9,400 import car dealers in the United States, launched an initiative called "No China Autos." AIADA argues that automakers such as Toyota, Hyundai, and Volkswagen have established production and R&D facilities in the U.S., created jobs, and become integrated into local industries—unlike Chinese cars, which "aim to dominate the entire U.S. market."

Blocking Chinese Joint Ventures… U.S. Raises Trade Barriers

The base tariff rate imposed by the U.S. on Chinese-made vehicles stands at 27.5%, with an additional 100% tariff levied specifically on electric vehicles (EVs). Furthermore, the U.S. Congress is advancing legislation to prohibit companies with Chinese ownership exceeding 15% from circumventing entry into the U.S. market via production in third countries or joint investment ventures. Under these circumstances, dealers importing Japanese, Korean, and European cars for sale in North America have unusually begun launching anti-China car campaigns.

Analysts suggest the reason lies in the reality that Chinese cars have already come to dominate markets across Europe, Australia, Latin America, and Africa. The pace of China's overseas expansion is truly astonishing. This year, China’s auto exports are likely to surpass 10 million units for the first time—representing approximately a fivefold increase in sales volume over just five years.

In the European market, where Chinese cars have made significant inroads, five Chinese automakers—including BYD—achieved a combined market share of 10.9% in the first half of this year, surpassing Hyundai and Kia (7.4%) and ranking just behind Japanese brands like Toyota (12%).

Chinese EVs, which hold a relative technological edge, are entering overseas markets even faster. In the European EV market, China’s market share rose from 4.2% in 2020 to 20.9% in 2025. During the same period, South Korea’s share surged from 2.8% to 33.9%, growing at an even faster pace.

The rise of Chinese cars has inflicted severe damage on traditional automakers’ performance. European brands once monopolizing the Chinese market have not only lost ground in China but are also struggling to defend their home markets. The world’s second-largest automaker, Volkswagen Group, is reportedly considering laying off nearly 100,000 employees over the next 4–5 years—an outcome closely linked to this shift. Although the U.S. market remains largely untaken by Chinese cars, the precedent set in Europe suggests that once trade barriers loosen, the U.S. market could be quickly captured by Chinese EVs.

Policies in Some Countries

The European Union is considering expanding its proposed additional tariffs on Chinese-made EVs—up to 35.3%—to include plug-in hybrid electric vehicles (PHEVs). Starting this year, Japan has introduced a tiered EV subsidy system based on supply chain stability and contribution to domestic industry, significantly widening the gap between subsidies. EVs produced in Japan benefit from tax credits proportional to their output.

In contrast, South Korea has almost no effective strategy to counter the surge of Chinese cars. Chinese-made Teslas receive subsidies from both the South Korean government and local municipalities, and their sales have even surpassed those of domestically produced gasoline-powered vehicles. Moreover, following BYD and Zeekr, Chinese EV makers such as XPeng are actively preparing to enter the South Korean market. When revising the Ministry of Environment and Climate Change’s EV subsidy policy this year, authorities considered excluding companies with low contributions to the domestic industry—but ultimately relaxed the criteria significantly. Additionally, under the Ministry of Trade, Industry and Energy’s domestic production tax credit program, EVs were excluded entirely.

Source: Chosun Ilbo

Original article: toutiao.com/article/1873555370381320/

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