Raimondo also emphasized the sheer number of electric vehicles that China is exporting. Indeed, China has become a battery electric vehicle (BEV) export behemoth. Europe has become the top destination for Chinese BEV exports, for now, and exports could continue to rise due to cost reductions and synergies with China''s shipbuilding complex. Responding to these dynamics could prove challenging for the United States and Europe, given the competing priorities of decarbonization, economic goals, and the mitigation of security risks.
China''s overall BEV exports rose 70 percent in 2023, reaching $34.1 billion. The European Union (EU) is the largest recipient of Chinese BEV exports, accounting for nearly 40 percent of them. Other European countries (Albania, European Free Trade Association members, North Macedonia, Ukraine, and the United Kingdom) held a 15 percent share of Chinese shipments in the same year.
China''s growing BEV shipments to Europe have vastly increased its share of the European market. Chinese manufacturers'' share of the Western European new BEV passenger car market stood at 9.3 percent in the fourth quarter of 2023, an astonishing rise from 2019, when China''s share in the total European BEV market only reached 0.5 percent.
In the Western Hemisphere, China''s exports to Mexico are worth watching carefully, as the country often serves as a backdoor to the US market. Still, Chinese BEV exports to Mexico are minor, totaling only $257 million in 2023, less than Canada, which imported $1.6 billion over the same period. In other words, there is greater risk of BEV trade "leakage" to the United States from Canada than Mexico—at least for now.
The United States is a significant purchaser of plug-in hybrids, but it''s not currently purchasing many Chinese-made models either directly or indirectly. Chinese PHEV exports to parties of the United States-Mexico-Canada (USMCA) trade agreement totaled only $132 million in 2023.
Indeed, Chinese-made electric vehicles haven''t played a sizable role in the US market, at least not yet. China directly shipped just $368 million in BEV exports to the United States in 2023. Conversely, the EU exported nearly $7.4 billion to the United States that year, according to official US trade data.
The United States doesn''t currently import Chinese BEVs at scale largely because it places a 27.5 percent tariff on Chinese-made cars, along with other restrictions. Still, this tariff may not ultimately prevent Chinese autos from reaching the United States.
Chinese BEVs are already significantly less expensive than Western autos. Chinese automaker BYD''s Seagull, for instance, sells for only twenty thousand dollars in Latin America, while China''s electric vehicle producers are currently engaged in a price war with one another. China''s electric vehicle producers are competitive due in part to genuinely impressive innovations; synergies with China''s industrial capacity, including its shipbuilding sector; and economies of scale. But massive subsidies from China''s national, provincial, and even local governments are also an important factor.
Furthermore, Chinese auto exports will soon no longer be constrained by insufficient transoceanic carrier ships. BYD, in tandem with CIMC Raffles of Yantai, launched China''s first car carrier built specifically for the purpose of exporting Chinese-made autos. Earlier this week, thousands of BYD vehicles were unloaded in Germany on the first of eight ships commissioned by the company. The state-run People''s Daily reported earlier this year that a single company, the Chinese shipping giant COSCO, has ordered twenty-four large vehicle carriers.
China''s shipbuilding sector and industrial capacity should not be underestimated: China''s civilian shipbuilding production stood at 49 percent of the global market share in the first eight months of 2023. Working together and reinforcing each other, Chinese electric vehicle producers and shipbuilders will enable the country to ship more autos abroad—including, potentially, to the United States.
Additionally, Chinese autos might make their way to the United States via investments in third countries, especially Mexico. Not only does Mexico border the United States, but it is also deeply integrated into USMCA supply chains. Case in point: General Motors, Ford, BMW, and Audi are all currently producing electric vehicles in Mexico. China''s BYD is reportedly scouting locations to build production facilities in Mexico, then export the vehicles across the border into the United States in order to avoid tariffs.
Barring a policy response, it is likely only a matter of time before China''s electric vehicles will be well positioned to enter the US market either directly via export or indirectly via re-exports from, or investment in, third countries such as Mexico.
Chinese exports pose dilemmas for policymakers on both sides of the Atlantic. Electric vehicles help accelerate decarbonization and may already be more economically competitive than traditional internal combustion engine vehicles. But leaving Western electric vehicle supply chains in the hands of a formidable rival poses obvious economic and strategic risks.
Chinese electric vehicle exports to Europe face increasing pushback on economic and security grounds. The European Commission, citing unfair subsidies, has launched an investigation into whether China''s BEV value chains receive subsidies that are illegal under global trade rules.
Washington, Brussels, and other capitals should engage in a comprehensive and thorough evaluation of the risks of Chinese BEVs to determine where Chinese-made automobiles do—or do not—pose risks. In the meantime, US and allied policymakers should take some interim measures to mitigate these risks.
For starters, Chinese BEVs with sensors should not be allowed near sensitive locations, as the video and imaging capabilities of these electric vehicles could enable real-time, on-the-ground surveillance. Consequently, Taiwan should continue to restrict inbound shipments of mainland Chinese-made electric vehicles, especially those with sensors. Chinese electric vehicles should also not be allowed in Guam and should be restricted around other US and allied military installations.
Chinese manufacturers and China''s foreign ministry may grouse about any restrictions on BEV exports. These objections can largely be dismissed, as the Chinese government has itself imposed restrictions on Teslas. Still, Chinese automakers will find it in their long-term self-interest for Western countries to determine the rules of the road. If Western countries can determine where Chinese BEVs do not pose risks, it would create greater certainty for trade and investment.
Chinese-made electric vehicles pose a thorny dilemma for Washington and Brussels, with complicated trade-offs. Policymakers do not have a lot of time, as Chinese exports appear set to rise sharply amid their domestic price war and a growing transoceanic car carrier fleet. While Washington, Brussels, and other capitals need to comprehensively examine the security risks of Chinese BEV imports, interim risk mitigation measures are appropriate until the totality of the costs and benefits are better understood.
Joseph Webster is a senior fellow in the Global Energy Center and the editor of the China-Russia Report. This article reflects his own personal opinion.
Climate change and technology are decreasing European natural gas demand in the winter, at the same time as the "equatorialization" of LNG demand is changing world markets.
Russia and, especially, China are intertwined in Latin America''s energy market, with Chinese ties expanding markedly over the past two decades. The United States and its allies and partners must take quick action to counter this rising influence.
US President Joe Biden just issued an executive order restricting the large-scale transfer of personal data to "countries of concern." Atlantic Council experts share their insights.
About Battery electric vehicles bevs kyrgyzstan
As the photovoltaic (PV) industry continues to evolve, advancements in Battery electric vehicles bevs kyrgyzstan have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Battery electric vehicles bevs kyrgyzstan for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Battery electric vehicles bevs kyrgyzstan featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
Related Contents
