Analyst says US anti-China EV protectionism is hurting Detroit’s electric vehicle plans

Anti-China protectionism backfiring on American carmakers’ EV plans: analyst

Washington’s effort to block Chinese electric vehicles was intended to protect the American automotive industry, but it has instead raised concerns about the competitiveness of US carmakers.

The strategy is also fuelling doubts about the direction of the country’s electric vehicle transition.

David Zhang, a macroeconomics and policy analyst at Trivium China, said the lack of a coherent industrial policy was discouraging long-term investment.

He said the protectionist approach was “backfiring on Detroit’s EV transition”.

The concern, according to Zhang, is that the US “has failed to come up with a coherent long-term EV strategy and stick to it”.

That uncertainty matters for American carmakers because a lack of policy consistency can weaken the long-term investment needed for the EV industry, according to Zhang’s assessment.

Zhang also said electric vehicles could become a “perfect concession” in US-China trade talks.

He added that China had “ample reason” to push for market access.

Chinese EV makers currently face tariffs of more than 100 per cent in the United States.

Washington has also imposed restrictions on China-linked software and hardware, citing data security concerns.

The measures show the two countries’ EV dispute involves both market access and technology-related restrictions.

For Detroit, however, Zhang’s argument is that protection aimed at shielding domestic carmakers may be making the transition to electric vehicles more difficult.

Source: South China Morning Post