Dorbiman
Well-Known Member
Right. It's not about tariffs then, is it? China’s market barriers never stopped foreign brands from flourishing there. Volkswagen, GM (Buick especially), BMW, and Mercedes have been dominant in China for more than a decade, with Tesla being insanely popular. Your original claim was:Because tariffs are big news in the media since the current administration took interest in leveling the playing field it is difficult to get the historical information on import tariffs prior to 2024. As I member it, the US tariffs on imported automobiles was generally 2.5%, with the exception of pickups protected by a 25% tariff. IIRC also China's import tariffs on foreign cars in general was 25% prior to 2024.
Yet also, China has numerous business restrictions on foreign corporations selling cars in China. Excerpts below from an April 18, 2018 NPR article summarize the restrictions well.
"For decades, China has been one of the most difficult places to sell a car, and one of the most lucrative.
Nearly 29 million vehicles were sold in China in 2017, according to the China Association of Automobile Manufacturers. That's 11 million more than what sold in the U.S. last year, according to Wards, an auto data tracking firm.
This week, Chinese officials announced they're planning to relax some rules specifically for electric cars.
Here are some of the barriers that makes selling a car in China problematic.
1. The 50/50 rule
To sell a car in China, companies everyone knows, like Toyota and Volkswagen, have to partner up with Chinese automakers. This means they have to share the cost of owning the plant, the cost of labor and in the profits from the sales. These automakers that are foreign to China cannot own more than 50 percent of a Chinese automaker. China created the policy in the early 1990s to help Chinese companies gain expertise from more technically advanced car companies. China says it will lift its restrictions on new cars that use new kinds of fuels, such as hydrogen, immediately, and electric cars by 2022.
2. Company secrets at risk
American and European automakers that team up with these Chinese carmakers have expressed concern over their intellectual property rights. Carmakers fear that their Chinese partners will steal their trade secrets, especially when it comes to advanced technology such as self-driving cars."
Not really a "to each their own" situation. My position is based on facts.
That’s not accurate. Those historical barriers existed, but they didn’t stop foreign automakers from becoming top sellers in China. The factors you cited don’t actually support your conclusion, especially now that foreign companies can operate and sell autos in China without the 50/50 joint venture. Your original statement was about tariffs, and China’s ~25% tariff is still far lower than the U.S.’s current 127.5% tariff on Chinese EVs. You describe that as “leveling the field.” I see it as protecting legacy automakers who haven’t stayed competitive in a free market.The only reason more American cars aren't sold in China is because of tariffs.
Regardless, this is wholly irrelevant to the discussion about EV worries.