(VitalNews.org) – Americans and officials have been worried about the addition of Chinese electric vehicles into the country due to privacy concerns and the ability of these EVs to knock others off the market. Chinese carmakers have set up shop in Mexico and are now exploiting America’s trade rules originally set up by the Trump administration.
One huge difference between American EVs and Chinese EVs is that Chinese EVs are priced at almost half of the cost that American EVs are. With the flood of Chinese EVs into America, American automakers will have a hard time competing with the low cost of Chinese-built electric vehicles.
This could potentially be another business sector where China has pushed inward and created government-subsidized Chinese competition, just as they did with solar and steel. Sen. Sherrod Brown, an Ohio Democrat, wrote a letter to Joe Biden regarding the effect of the Chinese government and the flood of Chinese products into the American market.
“Time and again, we have seen the Chinese government dump highly subsidized goods into markets for the purpose of undermining domestic manufacturing,’’ Brown wrote. “We cannot let the same occur when it comes to EVs.’’
The Alliance for American Manufacturing has said that these low-priced Chinese EVs pose an “extinction-level risk event” for America’s auto industry. A trade deal with the U.S., Mexico, and Canada could potentially allow these Chinese EVs to be sold in Mexico and then make their way into the United States.
Not only would this mean that Chinese electric vehicles would be sold at a lower cost than American electric vehicles, but Chinese EVs also wouldn’t have the high tariffs proposed by Joe Biden and his administration.
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