Chinese automakers have set their sights on the U.S. BYD has invested in its own logistics with a fleet of eight container ships that can each carry up to 9,000 vehicles, making it easy to redirect exports to the U.S. as soon as the barriers crumble.
The Chinese industry’s overcapacity is largely due to ramping up of production to address the U.S. market, said Matthias Schmidt, a long-time car analyst in Europe. Meanwhile, a costly price war in China has undercut profits, following the EU move to slap duties on made-in-China electric vehicles in an effort to stop them from flooding the market.
Those dynamics are manifesting at a sensitive time in the U.S., where Trump faces worsening poll numbers in large part due to rising costs. The surge in production and availability of cheap, tech-savvy cars come at a time when Americans have less ability to afford new vehicles, making the Chinese an alluring option.
“The Chinese are very good at infiltrating, influencing and persuasion,” said Rachel McCleery, executive director of the Coalition for Reimagined Mobility at Securing America’s Future Energy, a nonprofit. “They’re doing what they do best when it comes to getting people on board with the product they have to offer that they don’t currently have market access to offer.”
Read the full story: “Trump-Xi summit raises terrifying prospect for US and Europe: Chinese cars”
