Coping with the "Encirclement" by Europe and America with an Aggressive Strategy: Suggestions from Wang Qing of the Development Research Center of the State Council on Automobile "Going Global"

🚗 The new energy vehicle (NEV) industry in China is rapidly developing and has become the world's largest producer, consumer, and exporter of new energy vehicles. However, it seems that a "battle of encirclement" from Europe and America is unfolding. The United States has introduced new rules for electric vehicle subsidies and increased the import tariffs on Chinese electric vehicles from 25% to 100%. Subsequently, the European Union (EU) announced plans to impose a temporary counter-subsidy tax of 17.4% to 38.1% on Chinese electric vehicles, affecting even European and American brands produced in China. Recently, Canada also considered following the policies of the United States and the EU to impose additional tariffs on Chinese electric vehicles.

Why is the rise of China's new energy vehicle industry causing such vigilance from Western countries?

🔍 Wang Qing, Deputy Director of the Market Economy Research Institute of the Development Research Center of the State Council, was interviewed by the "China Automobile News" and provided an in-depth analysis and response strategies to this question.

"Vigilance is a predictable reaction"

🛡️ Wang Qing stated that new energy vehicles represent the convergence of new technological revolutions, involving transportation, energy, materials, artificial intelligence, and other new technologies. They are one of the commanding heights of future global manufacturing with great development potential and high technological levels. Therefore, major economies are very concerned about new energy vehicles and focus on improving their own technological competitiveness and production capacity, which is particularly evident in Europe.

🤔 He also noted that the situations in the United States and the EU are not quite the same. The United States is trying to limit and suppress China in the field of science and technology and high-tech products, aiming for a "de-China" global supply chain. The EU has both competition and cooperation with China, with more interests in China, and hopes to share the dividends of China's development as the world's largest new energy vehicle market through cooperation. The United States uses a comprehensive policy system, including tariffs, capital markets, technology cooperation, and subsidy rules, to restrict Chinese new energy vehicles, while the EU mainly adopts indirect measures such as carbon barriers and temporary tariffs.

"A necessary phenomenon in the growth process of an automobile power"

🛠️ Wang Qing believes that we should adopt a more aggressive strategy in the global layout of new energy vehicles. Specifically, by strengthening bilateral and multilateral negotiations, we can make the domestic automotive industry and market more open and inclusive, allowing more European companies to share the dividends of China's market growth, technological innovation, and business model innovation, forming a development pattern of mutual benefit and loss.

"Overseas factory construction is the only way"

🏭 Wang Qing pointed out that promoting overseas factory construction is the direction and trend of the next step in the global layout of China's new energy vehicles. Even if the other party does not require us to build factories locally, based on trade, tariffs, investment, and other barriers, we will gradually enter the stage of global capacity layout and technology output, which is the general trend. At present, we have begun to layout the industrial chain and supply chain in Southeast Asia, Europe, South America, and other places.

🌐 It is understood that in Europe, some Chinese car companies are promoting or discussing localized production. For example, in Spain, using the original Nissan factory, Chery is building its first production base in Europe. BYD will build its first European passenger car factory in Hungary. There is also news that Great Wall Motors is also negotiating with Hungary for its first European factory.

📈 Wang Qing said that the current view of the European and American industry is that Chinese new energy vehicle products are competitive. If a factory is established in a certain country, it will bring employment, tax revenue, technology, innovation, and other spillover effects to the local area, but it will also bring pressure and challenges to local car manufacturers. Of course, the cost of overseas factory construction is high and there are great risks, involving investment equity distribution, localization ratio, raw materials and parts of the original place requirements, battery recycling obligations, etc. However, we will also have some comprehensive advantages, including supply chain advantages, parts collaborative innovation advantages, and mature experience explored in China. To a large extent, overseas factory construction and innovation development are not a process of building from scratch, but a process of improving and applying relatively mature technology, products, and business models overseas.

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