United States vs. Chinese Automobile Companies

United States vs. Chinese Automobile Companies
United States vs. Chinese Automobile Companies Image link: https://en.wikipedia.org/wiki/List_of_automobile_manufacturers_of_China
C O N T E N T S:

KEY TOPICS

  • DETROIT — For years, as China emerged as the world?s largest producer of automobiles, American car companies have wondered when a Chinese manufacturer would try to enter the United States market.(More…)
  • Chinese automaker GAC Motors, also known as Guangzhou Automobile Group Co. (and Trumpchi, but not here ), is entering the North American market late in 2019.(More…)
  • Leading in both NEVs and lithium-ion battery production will not just afford China dominance of the future automobile sector, but will also allow Chinese companies to emerge as market leaders across a wide range of industries ranging from smartphones to laptops.(More…)
  • SF Motors is an American subsidiary of Chinese commercial vehicle company Sokon, so it will also be able to make around 150,000 SF Motors vehicles in China, a market that loves SUVs and is widely considered to be the next frontier for EVs. (More…)

POSSIBLY USEFUL

  • Growing trade tensions over cars and car parts, particularly with China, could raise risks for U.S. companies expanding their presence in the country, signs of which are already emerging.(More…)
  • A six-month POLITICO investigation found that the Committee on Foreign Investment in the United States, the main vehicle for protecting American technology from foreign governments, rarely polices the various new avenues Chinese nationals use to secure access to American technology, such as bankruptcy courts or the foreign venture capital firms that bankroll U.S. tech startups.(More…)

RANKED SELECTED SOURCES

KEY TOPICS

DETROIT — For years, as China emerged as the world?s largest producer of automobiles, American car companies have wondered when a Chinese manufacturer would try to enter the United States market. [1] President Donald Trump railed on Monday about Chinese tariffs on cars – pointing out the American cars are charged a 25% duty in China but Chinese-made cars are only subject to a 2.5% tariff in the U.S. (Shortly afterwards, Chinese President Xi Jinping responded by saying his country would lower import tariffs on vehicles). [2] Volvo, now owned by a Chinese company, and G.M. have already started shipping cars from China to the United States. [3]

Between 2002 and 2007, China’s national automobile market grew by an average 21 percent, or one million vehicles year-on-year. 10 In 2009, China produced 13.79million automobiles, of which 8million were passenger cars and 3.41million were commercial vehicles and surpassed the United States as the world’s largest automobile producer by volume. [4] It is perhaps no wonder that China has threatened to add automobiles to the list of American products that could face even greater tariffs in the fact of a trade wars. [2]

Some of them are originated from defense industry, such as Chang’an Motors, Changhe, and Hafei Motor ; some were developed from old state-owned companies, such as BYD Auto, Brilliance China Auto, Chery Automobile, and Changfeng Automobile. [4] The main industry group for the Chinese automotive industry is the China Association of Automobile Manufacturers (CAAM). [4]

Although various Chinese auto companies have made similar promises in the past that never came to fruition, GAC is edging closer to the U.S., having already established a joint venture in China with Fiat Chrysler Automobiles. [5] Chinese vehicle imports from all markets last year climbed to 1.2 million, according to the China Automobile Dealers Association. [6]

Gary Hufbauer, a fellow at the Peterson Institute, noted that Chinese tariffs on American auto parts sent to China are well below 25 percent. [7] A Chinese automobile maker wants to begin selling cars in the United States by the end of 2019. [8]

According to a report by the Office of the U.S. Trade Representative, Beijing’s tactics include coercing American companies to hand over trade secrets in return for access to the Chinese market; forcing U.S. businesses to license technology in China on unfavorable terms; using state funds to buy up American technology; and sometimes outright theft. [9] Chinese authorities have said they will take “comprehensive measures,” which companies worry could mean targeting operations of American businesses in China for disruption. [10]

The United States and China imposed more tariff hikes on billions of dollars of each other’s automobiles, factory machinery and other goods Thursday, Aug. 23, 2018, in an escalation of a battle over Beijing’s technology policy that companies worry will chill global economic growth. [10]

Chinese automaker GAC Motors, also known as Guangzhou Automobile Group Co. (and Trumpchi, but not here ), is entering the North American market late in 2019. [11]

Trump has said he is prepared to slap taxes on up to $450 billion in Chinese imports, or nearly 90 percent of the goods China shipped to the United States last year. [9] The United States and China imposed more tariff hikes on billions of dollars of each other’s automobiles, factory machinery and other goods Thursday. [10]

The company’s plight illustrates one of the unintended consequences of the tariff war now brewing between the United States and its trading partners: Most of the companies that will feel the tariffs’ impact are not Chinese but foreign firms that do part of their manufacturing in China, says Mary Lovely, an economics professor at Syracuse University and nonresident senior fellow at the Peterson Institute for International Economics. [12] There is no doubt that the Chinese government regulates what American firms do in China, with a view both to protecting domestic firms and to ensuring that Chinese companies get access to leading-edge American intellectual property. [13]

Leading in both NEVs and lithium-ion battery production will not just afford China dominance of the future automobile sector, but will also allow Chinese companies to emerge as market leaders across a wide range of industries ranging from smartphones to laptops. [14]

With continued Chinese retaliation against U.S. tariffs only likely to incite more fury in Washington, Beijing might consider some other measures in a bid to stand up to the United States without creating additional economic headaches for China. [15] The failure to investigate some forms of Chinese investments in American technology has flown under the radar as President Donald Trump goes tit for tat with Beijing, imposing tariffs meant to punish China for unfair trade practices. [16] American firms have to agree to set up a partnership, or joint venture, with a Chinese company to sell their goods in China, with technology transfer thrown into the bargain. [17] Even after the advent of joint ventures, American and German automakers still outsell their Chinese competitors, although analysts say China is catching up. [17]

China has “weaponized” its investments in America “in order to vacuum up U.S. industrial capabilities from American companies,” Cornyn said at a January hearing. [16] “You can buy a interest in a company and gain access to the same type of technology,” Attorney General Jeff Sessions told Congress in October, adding that Justice Department investigators “are really worried about our loss of technology” in instances where Chinese investors buy small stakes in American tech companies. [16] This has sometimes allowed Chinese companies to sue American firms like Apple for patent infringement even though the allegedly imitated product was designed by the U.S. company. [17] Chinese companies have already utilized this tactic in some areas against the United States, as evidenced by the cancellation and cessation of U.S. soybean purchases last month (the Chinese decision, however, also stemmed from commercial factors). [15]

SF Motors is an American subsidiary of Chinese commercial vehicle company Sokon, so it will also be able to make around 150,000 SF Motors vehicles in China, a market that loves SUVs and is widely considered to be the next frontier for EVs. [18] The only other Chinese EV startup heading down a similar path is NIO, which has a manufacturing facility in China but is planning an IPO in the United States. [18]

POSSIBLY USEFUL

Growing trade tensions over cars and car parts, particularly with China, could raise risks for U.S. companies expanding their presence in the country, signs of which are already emerging. [19] Unlike any other carmaking power, China requires multinationals to produce cars in 50-50 joint ventures with local companies, to help its domestic businesses learn the latest manufacturing techniques. [3]

The Chinese Automotive Industry Plan, announced on the main Web site of China’s central government, said China aims to create capacity to produce 500,000 new energy vehicles, such as battery electric cars and plug-in hybrid vehicles. [4] Trumpchi has done much better than most Chinese brands, and better than some multinational brands? China subsidiaries, in surveys of initial quality by J. D. Power and Associates, the global quality consulting company. [3]

The United States is the second-biggest export destination for German auto manufacturers after China, while vehicles and car parts are Germany?s biggest source of export income. [19] The governments of Japan, China and South Korea said they would monitor the U.S. situation, while Beijing, which is increasingly eyeing the United States as a potential market for its cars, added that it would defend its interests. [19] “When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%,” Trump wrote on Twitter early in the morning. [2] China charges a 25 percent tax on imported cars, compared with 2.5 percent in the United States. [3] China surpassed Japan to become the world’s second-largest vehicle market in 2006, and passed the United States to become the largest in 2009. citation needed This growth is spurring demand for automotive parts, services, and after-care products. [4]

At the Detroit auto show on Monday, officials of GAC Motor, based in Guangzhou, outlined a broad plan to build up its operations in the United States and begin selling a vehicle here next year, possibly in partnership with Fiat Chrysler Automobiles. [1]

Major domestic firms include the China First Automobile Group Corp. (FAW), Dongfeng Motor Corp. (DMC) and Shanghai Automotive Industry (Group) Corp. (SAIC). [4] China is presently capable of manufacturing a complete line of automobile products and large automotive enterprises. [4] According to China Association of Automobile Manufacturers (C.A.A.M), automakers in China delivered 28,226,616 passenger and light commercial vehicles in 2017. [4]

In 1984, Japan’s vehicle exports to China increased sevenfold (from 10,800 to 85,000) and by mid-1985 China had become Japan’s second biggest export market after the U.S. 24 The country spent some $3billion to import more than 350,000 vehicles (including 106,000 cars and 111,000 trucks) in 1985 alone. [4] That was a fraction of the number of cars the U.S. exported to China: 267,000 passenger vehicles worth $9.9 billion. [2] Trump’s focus on cars actually highlights one of the sectors where the U.S. maintains a large trade surplus with China, which would expand even more if China follows through in lowering the tariffs. [2] Volvo and General Motors both make cars in China and export them to the U.S. Ford plans to assemble some Focus sedans there, as well, Bloomberg reports. [2]

Charcoal powered vehicles were mainly used during the Second Sino-Japanese War in China because of fuel shortages. 16 Tung oil was also used during the war as a petroleum substitute. 17 One source states that Du Yuming designed a car in 1937, but did not make it until 1943 after having been forced to move because of the war. [4] The patent for the exterior design of the Evoque in China was declared invalid in April by the Chinese intellectual property regulator, because the car was unveiled before the patent was filed in China in November 2011. [4] GUANGZHOU, China — The cars are called Trumpchi (though their Chinese maker insists the name is just a coincidence). [3] It’s the second time the idea of Chinese car imports have crossed the president’s Twitter feed during his ongoing trade dispute with China – America’s largest trading partner. [2]

They also noted that the valuation of technology companies in China is currently very high, and that the government is strongly focused on developing this market, which is now dominated by local players. [20] Richard also commented that the valuation of technology companies in China is currently very high, with a strong government focus on developing this market, which is dominated by local players. [21]

The two companies are already partners in China, where GAC manufactures Jeeps for the Italian-American automaker. [1]

China has its traditional “Big four” state-owned domestic car manufacturers: Shanghai General Motors, Dongfeng, FAW, and Chang?an. 28 BAIC frequently challenge Chang’an as the fourth largest automaker. [4] They have a foreign joint venture with Jaguar Land Rover for the production of Jaguar and Land Rover cars in China. [4] Ford announced in June that it would move production of its popular Focus compact car from Michigan to China. [3]

China would be following the example of Japan and South Korea by jumping into the American market, but might face geopolitical obstacles. [3] Carmakers from China that export electric vehicles to the United States could even find advantages. [3] Beijing has been viewed warily in the United States for, among other things, building an archipelago of artificial islands with military-grade runways in the South China Sea. [3]

China?s auto industry has grown into the world?s largest, producing more cars each year than the United States and Japan combined, while shielded from imports by the highest trade barriers by far of any major car market. [3] Roughly 12 million cars and trucks were produced in the United States last year, while the country imported 8.3 million vehicles worth US$192 billion. [19] The majority of vehicles sold in the United States by Japanese and South Korean carmakers are produced there, but most firms also export to the U.S. from plants in Asia, Mexico, Canada and other countries. [19] A Trump administration official said before the announcement that the expected move was aimed partly at pressuring Canada and Mexico to make concessions in talks to update Nafta that have languished in part over auto provisions, as well as pressuring Japan and the European Union, which also export large numbers of vehicles to the United States. [19] Yu Jun, the president of GAC Motor, said in an interview on Friday that the company planned to export electric cars to the United States and Europe as well as gasoline-powered vehicles. [3] The brand?s burly GS8 midsize sport utility vehicle, the first model that the company plans to sell in the United States, and its spacious new GM8 minivan have sleek lines and levels of fit and finish close to those of Japanese automakers. [3] The first model GAC plans to offer in the United States is sport-utility vehicle called the GS8. [1]

A partnership to sell GAC cars in the United States could make sense. [1] The company said it planned to sell cars in the United States beginning in 2019. [1] A small car, called the GA4, and a concept for an all-electric S.U.V. called the Enverge that Mr. Jun said has a 370-mile range, do not figure in the company?s United States plans. [1] The potential for cooperation in the United States is sure to fuel further speculation about whether the two companies will move toward an even closer alliance. [1] Tesla and other American companies, like General Motors, are close to exhausting the credits for their customers. [3]

In 1983, American Motors Corporation (AMC, later acquired by Chrysler Corporation ) signed a 20-year contract to produce their Jeep -model vehicles in Beijing. [4] Korean and American brands suffered from lack-luster sales with Hyundai dropping from the top ten and GM and Ford both falling below local Chinese brands. [4]

The Chinese auto market has long been one that U.S. automakers are keen to conquer, especially since an increase in living standards within the nation have led consumers to put record numbers of cars on Chinese roads. [22] The first Chinese production vehicles were made by the First Automobile Works in 1956, a truck called the Jiefang CA-30. 19 This was followed on March 10, 1958 by the 2ton light duty truck (NJ130), which was based on the Russian GAZ-51, was produced in Nanjing. [4] “????3?????????2.3?? ?????????6??” Automobile Association: March new energy vehicle sales reached 23,000 in the first quarter, total sales of nearly 60,000 (in Chinese). [4] As of 2012 update, exports of Chinese automobiles were about 1million vehicles per year and rapidly increasing. [4] BAIC Group, also known as Beiqi ( Chinese ????, abbreviated to ??), is a state-owned enterprise and holding company of several Chinese automobile and machine manufacturers located in Beijing. [4] Other Chinese car manufacturers are Geely, Beijing Automotive Group, Brilliance Automotive, Guangzhou Automobile Group, Great Wall, BYD, Chery and Jianghuai (JAC). [4]

Chinese-made cars made up just 0.76% of the $191.7 billion in new automobiles and light trucks that the U.S. imported in 2017, according to the International Trade Administration data. [2] The U.S. imported 58,000 passenger cars from China worth $1.5 billion last year, according to the International Trade Administration, a federal agency within the Department of Commerce. [2] China is already ramping up trans-Pacific exports of multinational-brand cars. [3] Cars made in China by multinational joint ventures are generally not exported. [4]

Now the company that makes Trumpchis hopes that will change — and China appears to believe the rest of its auto industry is ready to go global, too. [3] Anderson, Greg, Designated Drivers: How China Plans to Dominate the Global Auto Industry, book talk at the USC U.S.-China Institute, 2012. [4]

China has agreed to lower tariffs on imported auto parts and accessories to 10%. [4] China also said right after President Trump left Beijing a week ago that it would consider a gradual cut in its import tariffs. [3] “China opposes the abuse of national security clauses, which will seriously damage multilateral trade systems and disrupt normal international trade order,” Gao Feng, a spokesman at China?s Ministry of Commerce, said at a briefing on Thursday, which focused largely on whether Beijing and Washington are making any progress in their growing trade dispute. [19]

Richard Gu, a Linklaters Senior Consultant in Shanghai, pointed out that the regulatory position on liability for AV incidents is unchanged in China, with several regions enabling testing of AVs. He also highlighted the importance of EV rollout in China, providing an overview of the credit system that incentivizes production of these vehicles. [20] By the end of 2007, China plans to reduce the average fuel consumption per 100km for all types of vehicles by 10%. [4]

Geely, is the biggest privately-owned automobile manufacturer and seventh biggest manufacturer overall in China. [4] The Wall Street Journal reported that the government of China will be forcing foreign carmakers to disclose their electric vehicle technology secrets before the vehicles are allowed to be sold in China. [4] The following year, Germany?s Volkswagen signed a 25-year contract to make passenger cars in Shanghai, and France?s Peugeot agreed to another passenger car project to make vehicles in the prosperous southern city of Guangzhou. 25 These early joint ventures did not allow the Chinese to borrow much foreign technology, as knock-down kit assembly made up the majority of manufacturing activities; 27 tooling may not have been allowed to slip past borders. [4] The company was the second-largest Chinese vehicle maker in 2017, by production volume, manufacturing over 4.1 million vehicles that year. 29 Its own brands are Dongfeng, Venucia and Dongfen Fengshen. [4] The Enverge electric concept vehicle made by GAC, a Chinese auto company. [1]

Earlier this month, Reuters reported that Ford Motor Co?s imported vehicles were being held up at Chinese ports, adding to a growing list of U.S. products facing issues at China?s borders. [19] The first Chinese built motor vehicle was a truck called the Ming Sheng. [4] As of May 2010, at least 10 all-electric models have been reported to be on track for volume-production. 80 The first mass-produced plug-in hybrid car ( BYD F3DM ), all-electric minivan ( BYD e6 ) and all-electric long-range bus ( BYD K9 ) are Chinese. [4] Various models of Trumpchi cars have been motoring down Chinese roads for the past seven years. [3] The current Chinese automotive policy states that a foreign carmaker must form a joint-venture with a Chinese carmaker if the former plans to sell its electric vehicles there, with the Chinese carmaker owning 51% of the joint venture. [4] Shanghai Automotive Industry Corporation (????????????), also known as SAIC (??) and SAIC-GM (????), is a Chinese state-owned automotive manufacturing company headquartered in Shanghai operating in joint venture with U.S. owned General Motors. [4] FAW Group Corporation (??????, abbreviated to ??) is a Chinese state-owned automotive manufacturing company headquartered in Changchun. [4]

Starting in 2013, Commerce Ministry officials have suggested they might lower China?s own automotive trade barriers once Chinese manufacturers were ready to sell abroad, to prevent them from being used as justification by other countries for reciprocal trade barriers. [3] It is largely to prevent foreign governments from citing them as a reason to apply their own limits on Chinese automotive exports. [3]

In addition to recently imposed 25 per cent tariffs on steel and 10 per cent tariffs on aluminium imports, the administration has threatened tariffs on US$50 billion worth of Chinese goods over intellectual property complaints, and Beijing has vowed to respond. [19] As this spending binge began to lead to a severe trade deficit, the Chinese leadership put on the brakes, both through propaganda efforts and by making foreign exchange much less accessible. 26 Customs duties on imported goods were raised in March 1985 and a new “regulatory tax” was added a little later. [4] While foreign auto companies are able to get their vehicles past the Great Wall and into Chinese consumers? driveways (albeit with some difficulty), high taxes and protectionist policies have led Chinese automakers to rule the local market. [22] With European merger control scrutiny focusing more on production facility locations and car models than type and innovation capabilities, participants suggested that merging companies in this sector must consider antitrust law at an early stage. [20] Others are private-owned companies, such as Geely Automobile and Great Wall Motors. [4] First Automobile Works – Volkswagen : Volkswagen Jetta compact car. [4] China’s annual automobile production capacity first exceeded one million in 1992. [4] The first production automobiles were the Dongfeng CA71, Hongqi CA72, Feng Huang (later known as the Shanghai SH760 ) all from 1958. [4]

Dongfeng Motor Corporation (??????, abbreviated to ??) is a Chinese state-owned automobile manufacturer headquartered in Wuhan. [4] Brilliance Auto, is a Chinese state-owned automobile manufacturer based in Shenyang. [4] GAC (Guangzhou Automobile Group), ia a Chinese state-owned automobile manufacturer headquartered in Guangzhou. [4]

GAC officials, for their part, say Trumpchi sounds in Chinese a little like “passing on happiness.” [3]

Given Trump’s increasingly hostile rhetoric towards Chinese trade policies, U.S. markets have been increasingly jittery over fears of an all-out trade war. [2] “????3????????????1.56?? ???????????” By the Federation: March passenger car sales rose to 15,600, BYD, BAIC and JAC swept the first three places (in Chinese). [4]

While limiting imports, China also tried to increase local production by boosting the various existing joint-venture passenger car production agreements, as well as adding new ones. [4] In China, their passenger car brands include Geely Auto, Volvo Cars, and Lynk & Co. [4] Used and refurbished auto parts are not allowed to be imported into China. [4]

On April 10, 2018, Foley & Lardner LLP and Linklaters LLP, a global law firm based in the U.K., held a roundtable on the “Future of the Automotive Sector in Europe, China and the United States.” [20] China had a total of 6,322 automotive enterprises as of the end of November 2006. citation needed The total output value of the automotive sector for the first three quarters of 2006 was US$143billion. citation needed As incomes increase the high annual growth rate of private ownership is expected to accelerate. [4] “EV sales increase 103.9% in China in 2012- Electric China Weekly No 17”. [4] Participants also discussed the cybersecurity law enacted in China last year, which requires that personal information and important data that is stored locally be subject to an impact assessment if there is a need to export such information out of the country. [20] Richard Gu, Senior Consultant from Linklaters in Shanghai, noted that the cybersecurity law implemented in China last year requires personal information and important data that is stored locally to be subject to an impact assessment if there is a need to export personal information and important data outside of China. [21]

Here in China, the government has barred people who buy Teslas from collecting subsidies of $10,000 or more per electric car because such benefits are available only to buyers of Chinese-built cars. [3]

“There?s no Obama-mobile, that?s a cultural thing, there?s no Clinton car,” said Robert C. Maling Jr., a retired Lexus executive who is now an adviser to GAC. “It would be confusing to the American public to have the Trumpchi name.” [3] That message might not go over as well next year at the Detroit and Chicago auto shows, where the company plans to announce more details of its American sales offensive. [3] “In the first half of this year, we will establish a North American sales company that will be responsible for developing the dealership network,” Mr. Jun said. [1]

Their first target? The world?s second largest auto market: the USA. According to Reuters, a few of China?s auto giants are keen on expanding by breaking into the U.S. auto market and giving just about every other auto company a run for their money. [22]

The United States exported nearly 2 million vehicles worldwide worth $57 billion. [19] Higher tariffs could be particularly painful for Asian carmakers including Toyota Motor Corp, Nissan Motor Co, Honda Motor Co and Hyundai Motor Co, which count the United States as a key market, and the announcement sparked a broad sell-off in carmakers? shares across the region. [19] Hybrids and electric cars together make up only 3 percent of all new cars sold in the United States, he noted. [1]

Despite the changing environment, GAC Group, GAC Motor?s parent company, has a lot of marketing work to do before it enters the American market. [3]

The company hopes it will be the first Chinese car brand to take off in a market that has eluded the country?s manufacturers. [3] Those manufacturing plants have caused Chinese car exports to the U.S. to surge nearly 2,000% since 2013. [2] Visser says that Lynk & Co plans to appease angry dealerships and their powerful lobby groups by franchising dealers to service these Chinese cars. [22]

Fiat Chrysler has been in discussions with a number of Chinese companies about potential equity investments, a prospect that took on greater significance after Mr. Marchionne tried and failed to persuade General Motors to consider merging with his company in 2015. [1] Linklaters Partner Pierre Tourres of Paris said that the development of restrictions on foreign investment is coupled with a strong drive on the part of OEMs to invest in technology companies, some of which are in their infancy. [20] Foreign joint venture companies include Suzuki, Ford, Mazda and PSA Peugeot Citro”n. [4]

China’s automobile industry had mainly Soviet origins (plants and licensed auto design were founded in the 1950s, with the help of the USSR) and had small volumes for the first 30years of the republic, not exceeding 100-200thousands per year. [4] After China’s entry into the World Trade Organization (WTO) in 2001, the development of the automobile market accelerated further. [4]

China has threatened to double tariffs to 50 percent on imported automobiles and other U.S.-made goods to retaliate against the Trump administration’s proposed tariffs on a broad range of products, including vehicles and automotive parts. [6] To encourage the growth of the industry, China has provided manufacturing incentives to EV companies, as well as subsidies to consumers who purchase EVs. [23] There are now over 30 companies making electric buses in China. [23]

If a tit-for-tat tariff dispute between the two countries erupts into a full-blown trade war, auto production in both will be affected, but U.S. factories would feel the strongest effect because China imports nearly 270,000 U.S. vehicles, worth $11 billion, and sends relatively few back. [6] The proposed U.S. tariffs on Chinese-made vehicles could affect Ford’s plans to shift production of the compact Focus next year from Michigan to China, a move the company said last year would save it $500 million. [6]

Americans have already demonstrated that they’re willing to purchase vehicles made in China. [5] Ford’s problem is twofold, involving both imports of premium Lincoln vehicles to China and a plan to export low-cost Focus compacts from China to the United States. [6] For starters, China exports very few cars to the United States. [7] When a car is sent to China from the United States, there is a Tariff to be paid of 25%,” Trump tweeted April 9. [7] The United States has a 60-day comment period on plans, and China is waiting for U.S. action before implementing its own. [6]

A question many are asking, particularly in the United States: Is Trump pulling back on severe national-security restrictions placed on the Chinese firm ZTE, sanctions which were reported to threaten the company’s very survival, in exchange for this concession? If so, let’s be clear: We are paying way too much for those additional exports. [24] To illustrate China’s relatively low share of car exports to the United States, Chad Bown, a senior fellow at the Peterson Institute for International Economics, pointed out data on U.S. imports from Mexico and Canada. [7] Chinese automaker at Detroit auto show: We’re coming to the U.S. in 2019 China’s GAC Motor vowed Monday to sell cars to Americans by the fourth quarter of 2019. [5] The American Automotive Policy Council says that historical practices like requiring lengthy car inspections of foreign-made vehicles and prohibiting existing car dealers from selling foreign cars have prevented foreign companies from gaining a large market share. [25] While Japanese cars are right-hand-drive, requiring manufacturing modifications before American cars can be sold there, this is no different from many other markets where foreign cars are prevalent. [25] China’s GAC Motor vowed Monday to sell cars to Americans by the fourth quarter of 2019. [5] The problem is in large part that American car dealers have been hesitant to invest in the kind of dealer network that consumers like Shujiro Urata have come to expect. [25]

The Chinese Ministry of Industry and Information Technology stated that new energy vehicles, including battery-powered and hybrid cars, should account for a fifth of auto sales by 2025. [26] Under the new rules, which take effect in 2019, a combination of credits and disincentives are designed to improve the fuel efficiency of traditional-fuel vehicles, as well as to promote the deployment of EVs. The new rules require automakers that sell 30,000 cars or more annually in China to produce fleets with a Corporate Average Fuel Economy of 42 miles per gallon by 2020, and 54.5 mpg by 2025. [23] Tesla’s California plant, which ships an estimated 15,000 cars a year to China, as well as BMW’s ( BMWG.DE ) South Carolina facility and Daimler AG’s ( DAIGn.DE ) Alabama factory, could lose hundreds of millions of dollars’ worth of production if China goes ahead with its threat to double import tariffs. [6]

President Donald Trump took to Twitter to bemoan what he considers unfair practices in the United States’ automobile trade with China. [7] This year, China is accounting for 15% of all U.S. auto exports, valued at more than $2 billion through the first quarter. [24] China currently has the highest number of electric vehicles on the road, surpassing the number in the U.S. for the first time this year. [26]

Of those vehicles headed to China, a majority, 52%, are leaving from just two seaports, the Port of Charleston, S.C., and Port Brunswick, Ga. For overall U.S. exports, the two account for about half of that, or 26%. [24] The United States’ second-largest motor vehicle export market is the world’s largest auto market, China. [24] At Brunswick, 88% of the value of its exports are motor vehicles, with 36% bound for China. [24] Other Census Bureau data, this looking at the origin of motor vehicle exports headed to China, supports the notion. [24] One-quarter of the value of all Charleston exports is motor vehicles, and 25% of those exports are headed to China, second only to Germany. [24]

“For every car we import from China, we export six to China. [7] The new car models will go on sale in China later this year. [8] Since China has created new rules for alternative-energy cars, Beijing is in essence creating a sweeping change in the automotive industry that will impact the types of cars available in other countries as well. [26] One of Germanys largest automakers will heavily invest in Chinas quest for electrified cars. [27]

That’s significant because “U.S. firms often ship auto parts to China to be assembled there,” Hufbauer added. [7] China is the world?s largest auto market, even though it taxes imported cars 10 times more than the U.S. Beginning in 2019, China requires electric cars to make up at least 10 percent of each automaker?s output. [26] For instance, the U.S. tariff on light trucks from China is 25 percent. [7] With the amount of tariff protection they receive on mainland China, they really don?t have to come to the U.S. to make money. [27] South Carolina and Alabama rank second and third among U.S. states exporting to China, trailing only California. [24] “China exports very few cars to the U.S. So Trump’s Tweet is once again a bit of a red herring,” said Bown, who noted that a similar disparity exists when comparing Chinese car exports to the European Union, Japan or South Korea. [7] BMW said in a statement: “A further escalation of the trade conflict between the U.S. and China would be harmful for all stakeholders.” [6] The Japanese auto market is the third-largest in the world, behind the U.S. and China. [25] “Our auto industry is doing extraordinarily well in China, while Chinese car production limps along.” [7] In addition to granting incentives to manufacturers of EVs, China has also provided subsidies to consumers who purchase EVs. Depending upon range, China?s Central Government has paid subsidies from RMB 20,000 to RMB 44,000 ($3,000 to $6,600) per vehicle, and most local governments have added between 15% to 50% to that amount. [23] China forecasts that EVs will total 2 million vehicles in 2020, and the government is targeting 7 million vehicles in 2025. [23]

General Motors Co’s ( GM.N ) exposure is limited because it imports only 30,000 Buick Envision crossovers a year from China, while sending just a handful of vehicles back. [6] Ford has said it ships about 80,000 vehicles a year to China, including various Lincoln models. [6]

All three export high-margin luxury models, many of them sport utility vehicles, to China. [6]

Barclays auto analyst Brian Johnson, in an investor note on Wednesday, predicted that Tesla “would bear the brunt of any increased auto tariff on a relative basis,” with China accounting for 17 percent of the company’s revenue. [6] It was certainly good news when China announced Monday that it will reduce its tariff on imports from 25% to 15% effective July 1. [24]

GAC Motor is looking to possibly relate the name used in the U.S. to the meaning of Trumpchi in China. [27] China is the clear global leader in the production and sale of electric vehicles (EVs). [23] Substantial incentives for the production of electric buses have propelled electric bus sales in China from just over 1,000 in 2011 to a high of 132,000 units in 2016. [23] While electric bus sales in China were slightly lower last year as a result of cuts in the electric bus subsidy program, 99% of the 352,000 electric buses on the road globally are running on China?s streets and roads. [23] French carmaker Renault plans to double sales outside of Europe, especially in China, to boost its revenues to 70 billion euros by 2022. [26] Volvo announced plans to make electric cars in China for global sale starting in 2019 and even Tesla is considering opening a factory in China. [26] Monetary subsidies for electric cars provided by China account for about 23 percent of a midsize electric car?s total price. [26]

Worldwide automakers are speeding up their efforts to develop electric vehicles and meet demand in China. [26] A General Motors Co. Chevrolet Volt electric vehicle sits parked at a charging station at the General Motors China headquarters in Shanghai, China, on Friday, Sept. 15, 2017. [23]

He said the automobile company General Motors already sells one, the Buick Envision, in the United States. [8] This tell us two things: First, the motor vehicles being exported are likely those being manufactured in the southern United States as opposed to the Detroit area. [24] The company is also planning to unveil electric vehicles for export to the United States as well as Europe. [27] GAC brass said the production version of the Enverge concept is targeted at the United States, so we assume that it’ll be part of the launch alongside its Volkswagen Atlas-like crossover. [11] The dynamic contributes in part to the trade imbalance between the United States and Japan. [25]

Models pose with the GAC Enverge electric concept car at the North American International Auto Show in Detroit, Michigan, Jan. 15, 2018. [8] GAC Motor on Monday presented two car models at the North American International Auto Show in Detroit, Michigan. [8] GAC Motor President Yu Jun said the company would establish a North American sales division to serve as the legal division through which it will enter the U.S. market. [5] Trying to establish a dealer network, GAC’s president announced the company is attending the North American Auto Dealers show later this year. [11] Volvo, Honda and Lincoln took home some hardware for vehicle of the year at the 2018 North American International Auto Show in Detroit. [5] Ron Stallworth of Fiat Chrysler Automobiles, shows Detroit Mayor Mike Duggan around the company’s show space at the North American International Auto Show, Jan. 8, 2018. [5]

Some experts suggested Trump had cherry-picked the facts by singling out “cars” instead of a broader category of automobiles or car parts. [7]

President Trump has bashed U.S.-China trade as imbalanced and criticized auto companies for importing cars. [5] Foreign companies have begun to sell more cars in Japan, with few complaints about Japan?s trade policies. [25] Original equipment manufacturers (OEMs) that fail to meet the quota will acquire negative credits, which, if allowed to accumulate, must be offset by either buying positive credits from other companies or cutting the production of fuel-burning cars. [23] U.S. companies set up shop in Japan in the first half of the 20th century, allowing Japanese carmakers to learn their technology. [25] Despite their complaints about trade barriers, U.S. companies haven?t made the same efforts. [25]

Beijing provides subsidies for private companies to build charging stations, and plans to have a nationwide infrastructure network large enough to support five million electric vehicles by 2020. [26] In 2015, Shougang Corporation, one of Beijing?s largest steel companies, and Tellus Power, an electric vehicle charging station manufacturer, began constructing China?s largest solar charging station, for $2 million. [26] Which leads to a third question: Should we care, if that is so? I will let you make up your own mind, but I don’t think we are diminished by foreign companies manufacturing here and exporting that work product. [24]

I can tell you, there is a zero percent chance of me trading in my American-made car for a Chinese import. [27] None of those Chinese-produced cars is branded by a Chinese company (it is mostly Volvo),” Hicks said. [7]

Automakers are taking Chinese interest in the U.S. seriously. [5] According to The New York Times, Chinese automaker GAC Motor is planning to begin selling cars in the U.S. by the end of 2019. [27] Chinese car company GAC is coming to the U.S. Photo 1 1 of 5 Chinese automaker GAC announced it was bringing its cars to the U.S. in late 2019. [11] The company hopes to be the first Chinese car brand to take off in the U.S. It just has one tiny detail to work out: the name. [27] Regardless of what the name is, Chinese cars will have a tough time cracking the U.S. auto industry. [27]

Before you question the idea of buying a car from a Chinese car company, consider that Volvo is owned by the Chinese corporation Geely, and sales are better than they’ve been in years. [11]

The automotive industry is thus being pushed toward a radical change due to Chinese demand for electric cars. [26] Trump’s numbers are drawn from American and Chinese government trade data. [7] In a sign of GAC’s increasing political savvy, the company convinced Michigan Gov. Rick Snyder, a Republican, to appear on stage at its press conference at the North American International Auto Show. [5] Enride, a company making and developing autonomous deliver trucks, on display at AutoMobili-D at the North American International Auto Show at Cobo Center in downtown Detroit on Jan. 17, 2018. [5] Jason Hsieh, an automotive engineer from Santa Clarita, CA tries out the Nervteh driving simulator at AutoMobili-D at the North American International Auto Show at Cobo Center in downtown Detroit on Jan. 17, 2018. [5] Evan Saunders, 32 of Pasadena, CA rides on a URB-E electric scooter at AutoMobili-D at the North American International Auto Show at Cobo Center in downtown Detroit on Jan. 17, 2018. [5] Media and guests attend a special presentation of the 2018 Chevrolet Silverado pickup truck as part of the media preview at the 2018 North American International Auto Show in Detroit, Michigan on Jan. 13, 2018. [5]

Fiat Chrysler CEO Sergio Marchionne acknowledged that the company has had discussions with GAC, which is officially known as Guangzhou Automobile Group. [5] In Japan, everything is about hospitality,” Peter Kronschnabl, the CEO of BMW Group Japan and the chairperson of the European Business Council?s Automotive Committee and the Japan Automobile Importers Association, told me. [25]

Japanese brands account for about 90 percent of the domestic auto market in Japan, according to the Japanese Automobile Dealers Association. [25]

U.S. exports to China are concentrated in agricultural products like soybeans, plus automobiles and Boeing aircraft sales. [28] China retaliated in force with a 25 percent tax on U.S. automobiles and agricultural products, such as soy beans. [28]

The automaker’s decision to kill its plan to sell Chinese-made vehicles in the United States came as U.S. President Donald Trump is escalating a trade battle with China, threatening to impose duties on another $200 billion in Chinese goods. [29] The United States and China have a tentative deal to save embattled Chinese telecom company ZTE, days after the two nations announced a truce in their trade standoff, The Wall Street Journal reported Tuesday. [9]

Many analysts say the United States should have enlisted key allies like Japan and the European Union–which share U.S. complaints about Chinese trade policies–to impose unified pressure on Beijing. [9] If tariffs are reduced, cars exported from the U.S. likely would be cheaper for Chinese consumers than they are now, potentially bolstering sales and helping American manufacturing. [30] German carmakers with big U.S. operations like BMW and Mercedes-Benz maker Daimler would be worse hit by proposed Chinese import tariffs than American auto firms, a study has found. [9]

“On behalf of doctors, thank you for pointing out the need to wean off American goods like bourbon and bacon,” the presenter says, referring to products on which China imposed retaliatory tariffs. [10] German luxury carmaker Daimler on Wednesday cut its profit forecast for 2018, blaming new tariffs on cars exported from the United States to China, amid lingering fears of a trade war between the world’s biggest economies. [9] To understand why the United States and China stand on the brink of a trade war, consider the near-death experience of American Superconductor Corp. [9]

Concerns were raised that the deal would give China access to the financial records of millions of Americans, including members of the military. [9] Ford in April said it would drop most of its traditional passenger car models for the North American market, and dropped an earlier plan to import Focus sedans from China. [29]

In this Aug. 15, 2018, photo, a visitor talks on his smartphone in front of a display of manufacturing robots from Chinese robot maker Honyen at the World Robot Conference in Beijing, China. [10] China also views NEVs as a tool for industrial development: first, it represents a second chance for Chinese firms to capture more of the domestic automobile industry, which is still tilted towards foreign carmakers (despite equity restrictions on foreign ownership), as well as to jump into international markets. [14] Although the authorities had originally planned gradually to phase out these subsidies anyway, the scandal pushed officials to slash subsidies earlier than expected, resulting in a fall of 74.4% year on year in NEV sales in January 2017, according to the China Association of Automobile Manufacturers (an industry group). [14]

One in five foreign companies in China feels compelled to hand over technology for market access, a business group said Wednesday, highlighting a key irritant in an escalating U.S.-Chinese trade dispute. [9] The automaker’s decision came as U.S. President Donald Trump is escalating a trade battle with China, threatening to impose duties on another $200 billion in Chinese goods. [29] Cars made in the U.S. and shipped to China could be poised to reap huge benefits if China follows through on President Xi Jinping’s promise to roll back tariffs on imported vehicles. [30] In 2016 China surpassed the U.S. to become the world’s largest and fastest-growing market for “new-energy vehicles” (NEVs), a designation which includes hybrid and fuel cell cars. [14] BMW shipped 106,971 vehicles from U.S. factories to China last year, while Mercedes sent 72,198, according to LMC. [30] The U.S. has announced $250 billion of tariffs on products from China, and China has partially retaliated and will probably come out with more retaliation. [28] While China is the final assembler from many products, actually more than half of the value of those products are in parts and components from other countries like South Korea and Japan–so there will definitely be collateral damage from U.S. tariffs. [28] Smartphones come to the U.S. as exports from China even though there are thousands of parts produced and assembled in many countries. [28] President Donald Trump, who ran for the White House on a vow to force China to reform its trade policies, is the first U.S. leader to risk a trade war between the world’s two biggest economies. [9] In the first round of tariff hikes, U.S. President Donald Trump imposed 25 percent duties on $34 billion of Chinese imports on July 6. [10] Trump also has proposed another possible round of tariff hikes imposing 25 percent increases on an additional $200 billion of Chinese goods. [10]

In 2017, Trump vetoed the sale of a U.S. semiconductor manufacturer to a Chinese investor as a threat to national security after Washington concluded the financing came from China’s government. [9] The U.S. says the Chinese government blurs the lines between state and private companies by bankrolling deals like Geely’s 2010 purchase of Volvo Cars and appliance manufacturer Media’s 2016 acquisition of German robotics maker Kuka. [9] Non-U.S. car manufacturers will be hit harder than their U.S. rivals, particularly those companies that do not have plants in the U.S. Jaguar Land Rover Automotive PLC, for example, has no U.S. production, while Volvo AB is planning to start U.S. production next year. [31]

President Donald Trump?s threat to slap 25% tariffs on imported cars and car parts would be a credit negative, and not just for the U.S. but for every segment of the global automobile industry, from car makers to parts suppliers, dealers and transportation companies. [31] Most early automobile companies were small shops, hundreds of which each produced a few handmade cars, and nearly all of which abandoned the business soon after going into it. [32] These problems were eventually resolved, and automobile companies contributed significantly to aircraft production. [32]

Although the automobile originated in Europe in the late 19th century, the United States completely dominated the world industry for the first half of the 20th century through the invention of mass production techniques. [32] The 25 percent duties, previously announced, apply to $16 billion of goods from each side including automobiles and metal scrap from the United States and Chinese-made factory machinery and electronic components. [10] In the United States there was a legal battle between Ford and the Association of Licensed Automobile Manufacturers over the Selden patent, which the association claimed as a basic patent on the gasoline-powered car. [32]

It was possible to begin building motor vehicles with a minimal investment of capital by buying parts on credit and selling the finished cars for cash; the cash sale from manufacturer to dealer has been integral in the marketing of motor vehicles in the United States ever since. [32] Ford Motor has abruptly killed a plan to sell a Chinese-made small vehicle in the United States because of the prospect of higher U.S. tariffs, the head of the automaker’s North American operations said Friday. [29] The Chinese-made Focus Active, which Ford calls a crossover, would have been a niche vehicle for the United States, and the decision to abandon plans to launch it in the U.S. market next year will not cost jobs or have a significant impact on the automaker’s U.S. sales, Ford North America chief Kumar Galhotra told reporters during a conference call on Friday. [29]

Many of the Japanese-owned American plants were built in response to limitations imposed on exports of cars to the United States by Japan?s Ministry of International Trade and Industry. [32] Peter Navarro, the White House trade adviser, has said the United States needs to protect its high-tech “crown jewels” from predatory Chinese practices. [9] Another Japanese automaker, Honda Motor Company, followed with a car manufacturing operation adjacent to its motorcycle plant; it later added a second car facility in the United States and a car plant in Canada. [32] Automotive firms provided one-half of the machine guns and carbines made in the United States during the war, 60 percent of the tanks, all the armoured cars, and 85 percent of the military helmets and aerial bombs. [32] Morris in fact turned to the United States for his parts, but these early efforts were cut short by World War I. In the 1920s Morris resumed the production of low-priced cars, along with his British competitor Herbert Austin and AndrGustave Citro”n and Louis Renault in France. [32] In the United States the preparation for industrial mobilization was negligible until 1940; in fact, there was no serious effort even to restrict civilian automobile production until after the attack on Pearl Harbor in December 1941. [32] The period from 1919 to 1939 also brought significant growth in automobile manufacturing in Europe, though on a considerably smaller scale than in the United States. [32] The Stanley brothers in the United States, however, continued to manufacture steam automobiles until the early 1920s. [32]

The kind of interchangeability achieved by the “American system” was dramatically demonstrated in 1908 at the British Royal Automobile Club in London: three Cadillac cars were disassembled, the parts were mixed together, 89 parts were removed at random and replaced from dealer?s stock, and the cars were reassembled and driven 800 km (500 miles) without trouble. [32] In 1954 Nash and Hudson joined to form AMC. The company enjoyed temporary prosperity in the late 1950s when it introduced the first American compact car, the Rambler, in response to growing imports of small foreign cars. [32] Increasing competition from imported cars and from new manufacturing operations established by European and Japanese firms continued to reduce the share of the American market controlled by the four domestic manufacturers through the remainder of the 20th century. [32] The European industry was moving in the same directions as the American industry, toward a mass market for motor vehicles, but it made slower progress for a variety of reasons: lower living standards with less purchasing power, smaller national markets, and more restrictions in tax and tariff policies. [32] By 1929 the Big Three supplied three-fourths of the American market for motor vehicles; most of the remainder was divided among the five largest independents–Hudson, Nash, Packard, Studebaker, and Willys-Overland. [32]

Beijing has rejected U.S. demands to scale back plans for state-led technology development that its trading partners say violate its market-opening commitments and American officials worry might erode the United States’ industrial leadership. [10] Chinese electric vehicle start-up NIO on Monday filed for a $1.8 billion initial public offering of its American depositary shares, the biggest U.S. listing by a Chinese automaker. [33]

At $1.8 billion, NIO’s IPO would surpass the $1.63 billion float by online group discounter Pinduoduo to become the second-biggest U.S. listing by a Chinese firm this year. [33] In January, its Chinese partner, Sinovel Wind Group, was convicted in a U.S. court of stealing AMSC’s trade secrets. [9]

“However, these imports represent only about 12% of BMW?s total annual unit sales, about 8% of Daimler?s global light vehicle sales, and around 3% of VW group sales (figures include sales from Chinese joint ventures),” said Clark. [31] Altogether, Chinese sales of U.S.-made vehicles totaled about 266,657, representing less than 1% of the world’s largest automotive market. [30] German automakers BMW Group and Daimler Group, maker of Mercedes-Benz, are the most prolific exporters of American-made vehicles to Chinese dealerships. [30] China’s subsidies also reflect the strength of Chinese players: policy support largely focuses on supporting pure battery and plug-in hybrid vehicles, which are the models favoured by China’s domestic producers (as opposed to gas-electric or plug-in gas-electric hybrids, which have historically been more popular in the international market). [14] Chinese policymakers have included NEV development as a key part of China’s five-year development plans since 2001, but it was not until 2010 that the government classified NEVs as a “strategic emerging industry”, a designation meant to attract investment through tax and other incentives. [14] Barring a last-minute breakthrough, the Trump administration will impose tariffs this week on $34 billion in Chinese products that have benefited from China’s strong-arm policies. [9] Barring a last-minute breakthrough, the Trump administration on Friday will start imposing tariffs on $34 billion in Chinese imports. [9] Xi’s comments follow a back-and-forth escalation of tariff threats with President Trump, who has bashed Chinese trade policy as unfair. [30] REUTERS/Damir Sagolj NIO is also joining several sizable Chinese listings in New York this year, even as Sino-U.S. trade tensions involving tit-for-tat tariffs rattle global stock markets. [33]

An online video about U.S.-China trade tensions produced by China’s state television broadcaster plays on a computer screen in Beijing, China, Thursday, Aug. 23, 2018. [10] The NIO EP9 is displayed during a media preview of the Auto China 2018 motor show in Beijing, China April 25, 2018. [33]

In September China announced that it would ultimately phase out all non-electric vehicles on the nation’s roads by an unspecified date, and the authorities began discussing the possibility of further opening the sector to foreign investment, which may bring in new technology to drive innovation. [14] Those vehicles could be poised to reap huge benefits if China follows through on a promise to roll back tariffs on imported vehicles. [30] They predict China will defy an array of U.S. tariffs set to take effect Friday and will retaliate immediately. [9] The U.S. Commerce Department recommended against approval of China Mobile’s seven year old application to enter the domestic market on Monday, citing national security concerns. [9] The pain from this collateral damage will be felt in many places, including U.S. firms that operate in China. [28]

Having begun promoting EVs in 2009, China aims to become a dominant global producer as it bids to curb vehicle emissions, boost energy security and promote high-tech industries. [33] Stephen Ezell, director of global innovation policy at the Information Technology and Innovation Foundation think tank, said China has raised its share of global output in 18 high-tech manufacturing industries from 8 percent in 2003 to 27 percent now. [9] By promoting NEV sales, the government supports its lithium-ion battery makers, a sector in which China also aims to develop global market leaders. [14] Such goods are part of “global value chains,” with China at the end of the chain. [28] NEV development feeds into China’s wider strategy at leapfrogging up the global value chain, enshrined in the Made in China 2025 initiative (MIC2025). [14] In the light of these policy challenges, China has adopted increasingly frenetic efforts to meet its ambitious production targets, largely by pushing industry players to shoulder the burden on NEV development. [14] Foreign business groups argue that Made in China 2025 is unfairly forcing them to the sidelines in those industries. [9]

Henry M. Leland, founder of the Cadillac Motor Car Company and the man responsible for this feat of showmanship, later enlisted the aid of a noted electrical engineer, Charles F. Kettering, in developing the electric starter, a significant innovation in promoting the acceptability of the gasoline-powered automobile. [32] Dongfeng Motor Group Co., Beijing Automotive Group Co. and Geely Automobile Holdings export less than 5% of their unit sales, mainly to emerging markets. [31] The Rootes Group, based on Hillman and Humber, was a combine formed by a family that had built a large automobile sales concern and then moved from sales to production. [32]

The design of modern automotive vehicles is discussed in the articles automobile, truck, bus, and motorcycle ; automotive engines are described in gasoline engine and diesel engine. [32] These moves have proved controversial; in September 2016 draft rules from the MIIT mandated that all automobile manufacturers devote 8% of their sales to NEVs to be battery electric or plug-in hybrid vehicles starting by 2018, with this percentage at 10% in 2019 and 12% in 2020. [14] In less than 10 years the number of automobile manufacturers in the United States dropped from 108 to 44. [32] The restrictions followed threats of sanctions by the United States in the wake of Chrysler?s near collapse and heavy losses by Ford and GM. Called the Voluntary Restraint Agreement (VRA), it spelled out how many cars each Japanese producer could ship to the United States in a single year. [32] By the early 1980s the automotive industry in the United States was concentrated in four major firms–GM, Ford, Chrysler, and AMC–and one important manufacturer of commercial vehicles, International Harvester Company. [32] The United States regained the lead in vehicle production in 1994, since by that time Japanese manufacturers were building more of their products in factories in their major overseas markets, such as the United States, in response to economic and political pressures in those markets. [32] They fell into one of three well-defined categories: they were makers of bicycles, such as Opel in Germany and Morris in Great Britain; builders of horse-drawn vehicles, such as Durant and Studebaker in the United States; or, most frequently, machinery manufacturers. [32] In 1979 Renault of France acquired a 46 percent interest in AMC to increase its small presence in the United States and gain access to AMC?s line of popular Jeep vehicles. [32] The new company stopped production in the United States in 1964 and in Canada two years later. [32] A similar combination, the United States Motor Corporation, was formed in 1910, collapsed in 1912, and was reorganized as the Maxwell Motor Company. [32] In 1904 he assumed control of the ailing Buick Motor Company and made it one of the principal American producers. [32] Leyland and the British Motor Corporation united in 1968 as the British Leyland Motor Corporation (later British Leyland Ltd. and, after 1978, BL Ltd. ); this move, sanctioned by the government, was intended to forestall possible American domination of the British automobile industry. [32] During the 1930s British automotive production continued to increase steadily, in contrast to American production, and so the smaller companies were not forced to compete for a shrinking market. [32] Although American production continued to grow, its share of world automotive production fell from about 80 percent of the total to 20 percent. [32] For all of the belligerents the conversion of automotive facilities was an afterthought, improvised after the beginning of hostilities, and the American industry, involved only for a short time, never fully utilized its capacity. [32] That smaller target list reflects the fact that Beijing is running out of American goods for retaliation due to their lopsided trade balance. [10] Beijing responded with similar penalties on the same amount of American goods. [10] Beijing issued a $60 billion list of American imports for retaliation if Washington goes ahead with that. [10] China’s imports from the United States last year totaled about $130 billion. [10] From a negligible position in 1950, Japan in 30 years moved past West Germany, France, Great Britain, and the United States to become the world?s leading automotive producer. [32] The third member of the “Big Three” automotive manufacturers in the United States was created at this same time. [32] China?s exports to the United States include technologies like smartphones, computers, and tablets. [28] British production had not yet reached the level at which the economies of scale gave the larger firms as commanding a lead as in the United States. [32] In the United States almost all of the producers were assemblers who put together components and parts that were manufactured by separate firms. [32]

In this Aug. 13, 2018, photo, a man sits in front of a billboard stating that American customers will be charged 25% extra due to ongoing China-U.S. trade tensions at a restaurant in Guangzhou in southern China’s Guangdong Province. [10] One American company, Pierce, made birdcages, and another, Buick, made plumbing fixtures, including the first enameled cast-iron bathtub. [32] The American automotive industry represented such a concentration of productive capacity and skill that, once its resources had been harnessed to war production, its contribution was tremendous. [32]

Railroad companies could also take a hit if crossborder transportation of autos and car parts shrinks, said the analyst. [31] U.S. trade groups and some large companies such as Boeing said Friday they were beginning to evaluate how new tariffs in the US-China trade spat could affect their operations. [9] “The companies are likely to reduce exports from the U.S. to Canada or other regions if tariffs are imposed,” said Clark. [31]

Released in May 2015, MIC2025 sets market-share targets for domestic companies across ten industries; directs locally branded NEVs to capture 70% of the Chinese market by 2020; and aims for two of the top ten global NEV companies to be Chinese-owned by 2025. [14] Beijing, it charges, is orchestrating a brass-knuckles campaign to supplant U.S. technological dominance and over the next few decades make Chinese companies global leaders in such fields as robotics and electric vehicles. [9] There are already some early wins under this strategy: a number of Chinese companies, including BYD, BAIC and JAC Motors, are already global industry leaders. [14]

Automotive industry, all those companies and activities involved in the manufacture of motor vehicles, including most components, such as engines and bodies, but excluding tires, batteries, and fuel. [32] A few producers of specialized vehicles remained, along with an assortment of companies that made automotive parts and components. [32] “These companies have minimal U.S.-produced vehicle penetration to offset reduced sales from price increases on imported vehicles,” said the report. [31] These companies as well as Mitsubishi, Isuzu, Fuji, and Suzuki later opened manufacturing plants in major markets outside Japan to ease trade tensions and increase their competitiveness as the value of Japan?s currency soared. [32]

THE ISSUE: On Monday July 9, in the most extensive trade protections in nearly a century, the White House implemented a 25 percent tax on Chinese imports. [28] Tangredi said the Chinese company persuaded a long-time Dais employee to defect with trade secrets. [9] About four years ago, Dais had lined up a Chinese company to help develop its business in nanotechnology that helps produce clean water. [9]

Chinese EV start-up NIO filed for a U.S. initial public offering on Monday worth up to $1.8 billion. [33] The company, backed by Chinese tech heavyweight Tencent Holdings Ltd, applied for a float of up to $1.8 billion, according to its filing with the Securities and Exchange Commission. [33] The plan calls for creating powerful Chinese players in such areas as information technology, robotics, aerospace equipment, electric vehicles and biopharmaceuticals. [9]

The Chinese government criticized Thursday’s U.S. increase as a violation of World Trade Organization rules and said it would file a legal challenge. [10] Zhejiang Geely Holding Group was founded in 1986, making it one of the earlier Chinese car makers to start up with no formal ties to the government. [34]

Italian automobile manufacturers gained a reputation for highly engineered sports cars and racing cars, but Italy had no mass market and therefore achieved only small-scale production at that time. [32] Except for Rolls-Royce, whose automobile production was only a very small part of the company?s business, British automobile output was then largely controlled by four firms: British Leyland, Ford, Vauxhall, and Rootes, which came under Chrysler control in 1967 but was sold off to France?s Peugeot-Citro”n in 1978. [32] The major developments of the 1920s were the merger of Daimler and Benz in 1926, after the founders of those firms had died (their bitter rivalry for the distinction of being the inventor of the gasoline automobile made any such union during their lifetimes unthinkable), and the entry of General Motors onto the German scene through the acquisition of the Adam Opel company in 1929. [32] The most promising, Kaiser-Frazer Corporation, lasted some 10 years but lacked the financial, technical, and sales resources to compete when the automobile market returned to normal. [32]

A six-month POLITICO investigation found that the Committee on Foreign Investment in the United States, the main vehicle for protecting American technology from foreign governments, rarely polices the various new avenues Chinese nationals use to secure access to American technology, such as bankruptcy courts or the foreign venture capital firms that bankroll U.S. tech startups. [16] One major concern among specialists like Ware is that Beijing officials could use early Chinese investments in next-generation technology to map the software the federal government and even the Defense Department may one day use — and perhaps even corrupt it in ways that would give China a window into sensitive U.S. information. [16] Since China first opened its markets, Beijing has been dogged by accusations that it forces U.S. firms to transfer technology to their Chinese business partners in return for access to the country?s 1.4 billion citizens. [17]

The U.S. is arguing that China unfairly regulates the conditions under which American firms can operate in China — with good reason. [13] China retaliated by raising its tariff on American cars from 25% to 40%. [35] Derek Scissors, who manages the American Enterprise Institute?s China Global Investment Tracker, an exhaustive database of China?s major global investments, said that as welcome as the surge of Chinese-funded deals may be in Silicon Valley, the engine behind them is the Chinese government. [16] In recent years, China has been repeatedly accused of industrial espionage — using indirect means to obtain American software and military secrets, everything from the code that powers wind turbines to the designs that produce the Pentagon?s modern F-35 fighter jets. [16] Senate Majority Whip John Cornyn (R-Texas) regularly warns his colleagues that China is using private-sector investments to pilfer American technology. [16] The ability of China to adopt and adapt American technology, and to do so at warp speed and massive scale, is extraordinary. [13]

China faces one key question: How can it respond to the United States in a meaningful way to limit further U.S. retaliation and minimize the impact on its own economy? The Chinese Commerce Ministry released a statement saying, “If the United States loses its sense and publishes such a list, China will have to take comprehensive quantitative and qualitative measures and retaliate forcefully. [15] China’s central bank would struggle to hoard other reserve assets — and even during rising trade tension between the United States and China in 2017, the state lender padded its U.S. treasuries after selling them down to defend the yuan the previous year — suggesting that such action would exacerbate the economic challenges that China is facing. [15] The United States manufactures elevators using some low-tech parts that are made in China, which are then brought back into the U.S. for final assembly and sold all over the world, she says. [12] Now, Mabuchi is facing steep tariffs on the parts it imports into the United States from China, says Anne Hoef, treasurer of Mabuchi’s Michigan-based distribution arm. [12] China does not want the fight against the United States to spiral out of control, lest all its exports to the country face tariffs of 10 percent or more. [15] Although negotiations between Beijing and Washington have soured, China retains hope that the United States will finally engage in dialogue so that the fourth and fifth round of tariff threats by the United States remain just that: threats. [15] Rising tensions between China and the United States have led to growing concerns that a tariff war will have a negative impact on the electronics industry. [36]

The Car Repair Services industry in China provides mechanical or electrical repair services for automobiles, including maintenance services and fixing and correcting existing or potential technical malfunctions. [37]

Mabuchi makes these motors in China and then sells them to automakers and medical-device companies in the U.S. and elsewhere. [12] The moves will increase the bureaucratic red tape that U.S. companies must overcome if they wish to do business in China. [15] The U.S. has banned the transfer of some technologies to China, banned Chinese firms from bidding on government contracts, blocked the acquisition of U.S. companies by Chinese companies, and influenced carriers not to sell or support products from Chinese companies. [36] China has required U.S. companies to have joint ventures with Chinese companies to do business in the country, forced special terms for licensing technology to products sold within China or by Chinese companies, and held up or forced the divestiture of assets for mergers involving U.S. companies. [36]

For the increasingly powerful Chinese leader, it was the culmination of years of efforts to guide how China spends its blossoming wealth. [16] China is likely to resort to this tactic more frequently as it pressures its consumers and importers to boycott and reduce shipments of U.S. goods in a way that minimizes damage to the Chinese economy — that is, by targeting products for which there are alternative suppliers. [15] In response to the tariffs, which Washington introduced as part of its Section 301 investigation into Beijing's intellectual property policies, China announced that it would begin levying additional tariffs worth 25 percent on $34 billion worth of U.S. goods on July 6 as well. [15] On June 18, the White House announced that President Donald Trump had directed the U.S. Treasury to identify a list of imports from China worth $200 billion for subjection to a 10 percent tariff. [15] The U.S. has threatened to implement up to $50 billion of tariffs against China through Section 301 of the Trade Act of 1974, meaning the White House does not have to go through the arbitration process ran by the World Trade Organization. [17] China will retaliate against the United States’ latest trade threats, but the country is likely to pursue informal measures such as boycotts against U.S. firms rather than impose new tariffs. [15] The cost of the tariffs is likely to ripple through the global supply chains that make up much of the trade between the U.S. and China. [12] “A concerted push by China to reshape the market in its favor, using industrial policies backed by over one hundred billion dollars in government-directed funds, threatens the competitiveness of U.S. industry and the national and global benefits it brings,” declared a January 2017 report from the President’s Council of Advisors on Science and Technology, warning of the urgent threat to U.S. superiority in semiconductor technology. [16] The Car Repair Services industry in China is set to grow 12% in 2017 to $11.8 billion, representing annualized growth of 12.4% over the past five years. [37] Essentially, China wanted to automate entire industries — including car manufacturing, food production and electronics — and bring the whole process in-house. [16]

In addition to luring foreign companies to China, Xi wanted the country — which is sitting on several trillion dollars in foreign exchange reserves — to start investing abroad. [16] In a 2018 survey conducted by the American Chamber of Commerce in China, more than half of members reported that leakage of intellectual property was a larger concern when doing business in China than elsewhere. [17] Again and again, high-tech products and military equipment have popped up in China that bear a too-striking resemblance to their American counterparts. [16]

China, the United States, and the European Union have all enacted regulations to reduce the fuel consumption of light-duty vehicles. [38] Recent trade skirmishes between China and the United States are less about steel and soybeans and more about which country will be the leader in global innovation in the 21 st century, writes Wharton dean Geoffrey Garrett in this opinion piece. [13] Trump could be using the threats as leverage in trade talks, but the latest actions are pushing the United States and China closer toward a trade war — which would have deep, economic ramifications for industry and consumers alike. [15] Chris Nicholson, co-founder of Skymind, an artificial intelligence company that makes the type of cutting-edge software that both the United States and China covet, recalls the many long months he spent in 2014 trudging up and down Sand Hill Road, the heart of Silicon Valley?s leading venture capital firms, and all the doors that slammed shut. [16] The escalation of tariffs between China and the United States is haunting the financial markets. [13]

The United States has now threatened five different rounds of tariffs on Chinese goods whose collective worth is close to $500 billion. [15] Security and economics experts say they are unsure how much financial or national security harm these Chinese investments are actually causing the United States — if any — simply because it may not be clear for years exactly how important the technology may be. [16] Many Chinese investments in the United States are not directly backed by the Beijing government, but it can be hard to distinguish. [16]

If the United States is to ever decrease its pressure against China, Beijing must find leverage – and the most effective way of doing so is to retaliate. [15] China has denied reports of such action, suggesting that an outright sell-off as part of retaliation against the United States is unlikely, even if a decline in the purchase of bonds is possible. [15] The United States has fired new salvoes in its dispute with China, but the latest blow is unlikely to be the last in a rapidly developing trade war. [15]

While Beijing might steer clear of hiking tariffs on U.S. exports for goods ranging from cars to soybeans to services, American exporters and consumers will certainly feel the sting of China’s alternative measures. [15] The nightmare scenario for carmakers is Mr Trump?s threatened blanket tariff on cars, combined with the collapse of NAFTA. Mexico and Canada account for roughly half of all American auto imports. [35] Critics noted on Monday that Trump’s tentative agreement to drop his tariff threat in exchange for Chinese pledges to purchase billions of dollars more in American goods avoided any mention of the outdated foreign-investment policies that have alarmed lawmakers across the political spectrum. [16] A Chinese company?s plan to acquire the American money transfer company MoneyGram fell apart when the two sides realized they would likely not get CFIUS approval because of concerns that the personal data of millions of Americans – including military personnel – could fall into the hands of the Chinese military. [16]

Earlier this year Mr Trump levied tariffs on $34bn of Chinese goods, including one of 25% on cars (another $16bn of goods were hit this week). [35] Those charges are in the spotlight again after the Trump administration detailed plans to slap tariffs on at least $50 billion of Chinese goods in an effort to punish Beijing for its technology transfer policies, stoking fears of a trade war. [17] In imposing tariffs on $34 billion worth of Chinese imports that took effect Friday, the Trump administration says it is hoping to strike a blow against long-standing abusive trade practices by the Beijing government. [12]

The latest announcement could ignite an even deeper conflagration, as Trump also promised to impose yet more tariffs on $200 billion worth of imports from China if Beijing also retaliates against the June 18 measures. [15] In the first round in March, Washington announced import tariffs on steel and aluminum on many countries, including China — as part of the United States’ global measures against those products. [15] China has already taken aim at some of these products, such as pork imports, as part of its response to the United States' initial steel and aluminum tariffs in March. [15]

Even though the electronics industry has been spared from the China and U.S. tariff attacks, it is very much at the center of other political attacks that often are less visible. [36] For China, such indirect boycotts and obstructions to U.S. goods entering the country represent a more nuanced form of retaliation that, because of its close connections to its firms, it could quickly offer to reverse as a “concession” in eventual trade talks by promising new purchases of U.S. goods. [15] She notes, “60 percent of all the trade between the U.S. and China actually takes place through these multinational supply chains.” [12] In the past, I have argued that it is best to view things like trade spats between China and the U.S. as well-choreographed theater designed to appease domestic political audiences without threatening the underlying big economic win-wins between the two countries. [13] As trade concerns looms over Wall Street, here?s a guide to why intellectual property features so prominently in trade tensions between U.S. and China. [17] Beijing could respond by selling off a portion of its massive U.S. treasuries (China held $1.181 trillion in U.S. treasuries as of April) or decelerating or curtailing its purchases of U.S. government bonds. [15] There is no doubt that most of the best new underlying technology continues to come out of the U.S. Realistically, it will take China many years, probably decades, to change this. [13] China will not appeal to the WTO to rule against the U.S. Instead, both countries will take matters into their own hands — that is exactly what has happened this year. [13]

While the company could avoid the tariffs by relocating its manufacturing facilities outside China, doing so would take years, Hoef says. [12] The company, which sells some 700 home and garden products, is expected to face tariffs on the tillers and cultivators it makes in China and imports into the U.S., says CEO Joseph Cohen. [12] It has also increased the probability that China will soon have its own global auto company (not necessarily SAIC) that will compete head-to-head with GM inside and outside China. [13]

Consider, for example, the 15-year-old joint venture between General Motors and Shanghai Automotive Industrial Corporation that has resulted in GM?s selling more vehicles today in China than it does in America. [13] U.S. firms that are already doing business in China could find themselves targeted with anti-corruption probes and other bureaucratic procedures as part of Beijing’s response. [15] This briefing compares the fleet characteristics and fuel-efficiency technology deployment in China, Europe and the U.S. from 2010 to 2014. [38] This briefing provides insights into the trends of technology deployment in response to the latest standards in China, the U.S. and the EU from 2010 to 2014. [38] U.S. officials have a name for their frustration with Beijing?s technology ambitions: “Made in China 2025.” [16] It is clear that the U.S. and China are complementary where innovation is concerned — the U.S. has a comparative advantage in incubating innovation; China?s comparative advantage is scaling it. [13]

China even has targeted key regions that produce those products, such as the states that vote first in the next presidential election or that have members of Congress in strategic positions. [36] One source of complaint for foreign firms is that China also employs a first-to-file patent system, in other words, the first firm to file a trademark will receive it, whether or not they originated the product. [17]

The electoral incentives are clear for the Trump administration to talk up links between wages and jobs and the mushrooming of America?s trade deficit with China over the past 15 years. [13] The Trump Administration is angling for a trade war and has threatened to increase tariffs on China once again. [15] ” While China will consider responding by applying more tariffs, such an overt response could invite more retaliation, meaning Beijing could eschew tariffs to pursue asymmetric forms of pressure that are less visible. [15]

Attempts to reach Han through China Oriental Group, the iron and steel company that he runs, were also unsuccessful. [16] Issued in 2015, it calls for China to develop its own global competitors in fields from information technology to electric cars to pharmaceuticals. [16]

Besides a large factory in South Carolina which makes Volvos (owned by China?s Geely), Chinese firms neither export cars to America nor make them there. [35] While there?s no indication that the firms had U.S. government contracts at the time that Chinese investors became involved, that may be part of China?s strategy. [16] The U.S. just announced severe penalties on Chinese telecommunications equipment vendor ZTE, not permitting any U.S. company to provide components to it. [36] National security experts say Chinese hackers have also long tried to steal trade secrets from U.S. defense contractors. [17]

Trump’s move is itself a response to China’s retaliation against the United States’ first round of tariffs, which will impose a 25 percent duty on $34 billion worth of Chinese imports starting July 6. [15] The fifth round, meanwhile, are the hypothetical additional tariffs on $200 billion of Chinese products that Trump has threatened to impose if Beijing retaliates to the fourth round. [15] As months passed without any action, and the issue of Chinese investments got overshadowed by tariff fights and feuds between Beijing and the Trump administration, national security experts grew more concerned, fearing that Congress lacked a sense of urgency to police transfers of sensitive technology. [16]

Chinese leaders are liberalizing aspects of the economy by creating new investment opportunities for foreign companies and investment houses in a number of sectors, including the new energy, automotive, information technology and financial sectors. [15] From 2015 to 2017, Chinese venture capitalists pumped money into hot companies like Uber and Airbnb, but also dozens of burgeoning firms with little or no name recognition. [16]

Such action could include anti-corruption investigations and audits against joint U.S. ventures operating in the country, the enforcement of stronger environmental and other regulations against American companies, the rejection of necessary permits and other regulatory applications for U.S. firms and so forth. [15] CFIUS was set up by Congress in 1975 amid growing concerns about oil-rich countries in the Middle East buying up American companies, from energy firms to armsmakers. [16] Westlake has put money into other VC funds, such as the WI Harper Group, which has a stake in a wide slate of American tech companies, from a dating app to a three-dimensional imaging company to a maker of robot cooks. [16]

Companies from the United States are far from the only ones interested in these opportunities. [15]

This statistic represents the leading car brands in the United States at the end of 2017, based on vehicle sales. [39] It is also assembled in America with more American parts than most vehicles, and so about as impregnable as they come to President Donald Trump?s trade policies. [35] It went on to warn that Beijing?s acquisition of top-notch American technology is enabling a “strategic competitor to access the crown jewels of U.S. innovation.” [16] The U.S. fails to adequately police foreign deals for next-generation software that powers the military and American economic strength. [16]

New jobs for U.S. workers and new taxable wealth for the government to confiscate could be created in the USA to design, manufacture, build, operate, maintain, and repair the future manufacturing robots for worldwide sale. [13] In 2016, foreign investors injected $373 billion into the United States, a figure that has been mostly increasing since the early 2000s, according to government data. [16] The bipartisan proposal would direct CFIUS to consider whether pending investments would erode America?s technological edge, enable a foreign government to utilize digital spying powers that might be used against the United States, or give sensitive data — even indirectly — to a foreign government. [16] In March, Trump blocked the purchase of the chipmaker Qualcomm by Singapore-based Broadcom Ltd. CFIUS said such a move could weaken Qualcomm, and thereby the United States, as it vies with foreign rivals such as China?s Huawei Technologies to develop the next generation of wireless technology known as 5G. [16] National security specialists insist that such a stealth transfer of technology through China?s investment practices in the United States is a far more serious problem than the tariff dispute — and a problem hiding in plain sight. [16] Now, much of the cutting-edge technology in the United States is in the hands of much smaller firms, including Silicon Valley startups that are hungry for cash from investors. [16]

The administration?s much bigger concern is China?s very real challenge to American global dominance in the innovation economy. [13]

In December 2016, President Barack Obama stopped a Chinese investment fund from acquiring the U.S. subsidiary of a German semiconductor manufacturer — only the third time a president had taken such a step at that point. [16] Once the U.S. Treasury identifies the relevant Chinese goods, officials will conduct a two- or three-month public comment process, meaning the duties could come into force as early as October. [15]

Haiyin Capital, a Beijing-based VC firm, is partially backed by a state-run Chinese company, according to a company release. [16] Joseph Benkert, the former assistant secretary of defense for global affairs under the George W. Bush administration, argued that the question of Avatar?s ownership needed more review given that the company appeared to be under the control of a Chinese national. [16]

Chinese President Xi Jinping (bottom center) addresses senior members of the government at the opening session of the 19th Communist Party Congress in Beijing on Oct. 18, 2017. [16] The plan had “much more money behind it” and “much more coordination” between Beijing and Chinese industrialists than previous economic strategies, according to Scott Kennedy, an expert on Chinese economic policy at the Center for Strategic and International Studies, a Washington think tank that specializes in defense matters. [16]

A POLITICO review of 185 tech startups with Chinese investors found just over 5 percent had received government contracts, loans or grants ranging from a few thousand dollars to several million dollars. [16] Some prominent Chinese VC firms in Silicon Valley have clear links to the government. [16] It?s not clear, however, if these joint venture arrangements are successful at putting Chinese firms on a level playing field with the rest of the world. [17]

A paper by the St. Louis Federal Reserve in 2015 estimated that half of the technology possessed by Chinese companies came from foreign firms. [17] In the past, Beijing has succeeded in using its formal and informal links to Chinese companies to apply informal economic pressure against other countries — a tactic that the country used most recently in countering South Korean goods over Seoul’s deployment of the Terminal High-Altitude Area Defense (THAAD) anti-missile system. [15]

Beijing could turn a cold shoulder to U.S. agricultural, automotive, energy and other exporters in favor of doing business with companies from other countries. [15] Beijing also boasts other, more intrusive options that it can use against U.S. companies already deeply involved in the country. [15] China’s retaliation will increase the bureaucratic red tape that U.S. companies must overcome if they wish to do business in the country. [15]

He raised particular concerns about expanding CFIUS authority to cover foreign investments in “critical technologies,” a phrase tech leaders say is worryingly opaque and that could force companies peddling sensitive technology to have every single sale reviewed. [16]

There is no doubt that the Chinese government has an active “industrial policy” to transform its economy from a low cost assembler and manufacturer into a global leader in the cutting edge industries of the 21 st century. [13]

It?s ostensibly a Chinese company that plans to make vehicles here in the U.S. as well as in China, meaning it won?t be subjected to import taxes in either market. [18] Musk called this unfair because non-Chinese companies only have one way to get around a 25 percent tax that China applies to imported vehicles, which is to enter a joint venture with a Chinese auto company. [18]

As Trump warned of “additional tariffs” should Beijing hit back with tit-for-tat duties on American goods, China unveiled 25 percent duties on $50bn in U.S. imports. [40]

RANKED SELECTED SOURCES(40 source documents arranged by frequency of occurrence in the above report)

1. (50) Automotive industry in China – Wikipedia

2. (46) automotive industry | History, Developments, & Facts | Britannica.com

3. (41) How China acquires ‘the crown jewels’ of U.S. technology – POLITICO

4. (35) U.S. Firms Caught in the Crossfire in Trade War with China

5. (25) China to Export Trumpchi Cars to U.S., Maybe With a New Name – The New York Times

6. (25) Why they fight: US and China brawl over high technology

7. (16) U.S., China raise tariffs in new round of trade dispute

8. (15) Why the U.S.-China “Trade War? Is Really About the Future of Innovation – [email protected]

9. (15) 2018 Detroit auto show: Chinese automaker vows to sell cars to Americans in 2019

10. (13) The road ahead: China?s new-energy vehicles

11. (13) Is Donald Trump right that China slaps a 25 percent tariff on American cars? | PolitiFact

12. (12) Chinese Carmaker May Use Fiat Chrysler for Foothold in United States – The New York Times

13. (12) Why is the U.S. accusing China of stealing intellectual property? – MarketWatch

14. (12) U.S.-China trade war could hit German automakers, plus Tesla, Ford | Reuters

15. (11) New US tariffs could be coming for Chinese automobiles and other imports to America as auto inquiry is launched | South China Morning Post

16. (11) American Automakers Winning in China – Despite Donald Trump’s Comments | Fortune

17. (11) China’s Decision To Lower Automotive Tariffs Is Good News In The South

18. (11) Automotive Industry Is Racing To Meet Electric Vehicle Demand In China

19. (10) What China’s Shifting Subsidies Could Mean For Its Electric Vehicle Industry

20. (10) Why Aren?t U.S. Cars Popular in Japan? – The Atlantic

21. (9) Trump Aims Tariffs At Chinese Companies, But Other Firms Will Also Feel The Pain : NPR

22. (9) Unpacked: The US-China Trade War

23. (8) Chinese-Made Trumpchi Cars Coming to U.S. in 2019 – The Drive

24. (7) Chinese auto tariffs: Top 20 American-made vehicles exported to China

25. (7) Trump Tariffs Would Be Bad for the Entire Global Auto Industry, Says Moody?s – Barron’s

26. (7) Chinese EV maker NIO is planning a $1.8 billion IPO on the NYSE – Business Insider

27. (6) Future of the Automotive Sector in Europe, China and the United States | Dashboard Insights

28. (6) The Electronics Industry: A Pawn in the US vs. China Chess Game | Hardware | TechNewsWorld

29. (5) Official: Chinese car company GAC will sell cars here in 2019 | Autoweek

30. (5) Ford cancels plan to sell Chinese-made vehicle in the United States

31. (5) How America?s car industry is coping with trade disputes – Rocky road ahead

32. (5) Chinese Company to Sell Cars in US in 2019

33. (4) SF Motors is exactly the kind of EV startup Elon Musk complained to Trump about – The Verge

34. (4) Chinese Automakers Will Finally Start Selling Cars In USA By 2020 – CarBuzz

35. (3) Comparison of fuel-efficiency technology deployment in passenger cars in China, Europe, and the United States | International Council on Clean Transportation

36. (2) Future of the Automotive Sector in Europe, China and the United States – Manufacturing Industry Advisor

37. (2) Car Repair Services in China. Industry Market Research Reports, Trends, Statistics, Data, Forecasts

38. (1) Chinese company Geely is buying up London taxis, luxury sports vehicles, and flying cars — Quartz

39. (1) • Car brands – vehicle sales in the U.S. 2017| Statistic

40. (1) China’s retaliatory tariffs to hit US lobsters, soybeans | Trump News | Al Jazeera