Can additional tariffs stop foreigners' desire for "Made in China"?
Jun 28, 2024
Focusing on new energy vehicle information and shopping guide.
It is often said that the development of domestic cars should not be limited to "visible" features such as LCD screens and luxurious configurations, but should pay more attention to "invisible" technologies like the three-electric technology and the three major components. However, when domestic cars are exported, foreigners are actually more fascinated by the "fridge & color TV & sofa".
Chery, Great Wall, Geely, and other car companies remain as stable as Mount Tai in the Middle East, Eastern Europe, Russia, Africa, Southeast Asia, South America, and other countries and regions. The European Union is even more surprising, with models like the smart #1 (produced by Geely), BYD Atto 3 (Yuan PLUS), SAIC MG4 EV, and others quickly becoming popular, catching the old brands like German BBA, French PSA, and British Land Rover Jaguar completely off guard.
Now, Chinese new energy vehicles are pouring into the market like a "flood beast," and even the EU can't hold on. Starting from July, it will forcibly impose additional tariffs on cars "Made in China". The latest news is that BYD's tariff is 17.4%, Geely's is 19.9%, and the best-selling SAIC MG4 EV has reached 37.6%. Adding the original 10% tariff, the total tariff reaches 47.6%, which is almost half of the import price.
Interestingly, the Model 3 and Model Y exported from Tesla's Shanghai factory to the EU are also considered domestic cars, but the EU Commission has indicated that Elon Musk has applied for a "separate tariff rate calculation" in the final stage. The mentality of protecting one's own is too obvious!
Regardless of how the EU is double standards, consumers at home and abroad always have bright eyes. The electric cars from the mysterious Eastern power are not only more advanced, luxurious, and with a higher sense of experience than local cars in terms of visible refrigerators, color TVs, and sofas. In terms of three-electric technology, 800V high-voltage electricity, SiC silicon carbide electric control, flat wire hairpin motor, adaptive chassis, line control braking, and even intelligent cockpit, high-order intelligent driving, have all become common in high-end domestic cars. As for local car companies, even German BBA, these new technologies still need at least 3 years to precipitate, and at least twice as expensive as domestic cars.
Looking back on the end of the Qing Dynasty a hundred years ago, facing the European colonizers who had completed the first industrial revolution, the Qing government also faced the pressure of a large amount of "foreign goods" dumping. The traditional manual textile industry was ruthlessly crushed by industrial textiles, until it was forcibly kicked open by the Opium War, and the humiliating modern history of a hundred years began. Now, the situation has changed, and the "Old Buddha, the foreigner wants to build a railway for us" has actually reversed to the former colonizers, and the historical boomerang has hit the back of the European "old money" head, which is so magical. Indeed, China, which has been upgraded to the world's strongest industrial power, is also the time to let foreigners feel the power of the socialist iron fist. Of course, we must also be clear that highly developed industrialization will inevitably lead to overcapacity and industry involution. If it cannot be released externally, it will inevitably lead to a decline in consumer potential and a slowdown in economic growth. This is the core reason why Europe was anxious to colonize the world at that time, and it is also a problem that China needs to face at present, and it is a "zero-sum game" where the winner takes all.
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