Chinese carmakers set up shop in Mexico to exploit North American trade rules. Once in place, they send ultra-low-priced electric vehicles streaming into the United States.
As the Chinese EVs go on sale across the country, America’s homegrown EVs — costing an average of $55,000, roughly double the price of their Chinese counterparts — struggle to compete. Factories close. Workers lose jobs across America’s industrial heartland.
Ultimately, it could all become a painful replay of how government-subsidized Chinese competition devastated American industries from steel to solar equipment over the past quarter-century. This time, it would be electric vehicles, which America’s automakers envision as the core of their business in the coming decades.
“Time and again, we have seen the Chinese government dump highly subsidized goods into markets for the purpose of undermining domestic manufacturing,’’ Sen. Sherrod Brown, an Ohio Democrat, wrote in an April letter to President Joe Biden that called for an outright ban on Chinese electric vehicles in the U.S. “We cannot let the same occur when it comes to EVs.’’
Low-priced Chinese EVs pose a potentially “extinction-level event’’ for America’s auto industry, the Alliance for American Manufacturing has warned.
The trade deal that Beijing could potentially exploit — the U.S.-Mexico-Canada Agreement — was negotiated by the Trump administration and enacted in 2020. Its rules could let Chinese autos assembled in Mexico enter the United States, either duty-free or at a nominal 2.5% tariff rate. Either way, China could sell its EVs well below typical U.S. prices.
This story is from the June 29, 2024 edition of Techlife News.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the June 29, 2024 edition of Techlife News.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
JUDGE PUTS $30 BILLION VISA MASTERCARD SETTLEMENT ON HOLD, IN SIGNAL OF LIKELY REJECTION
A federal judge said she’s not likely to approve the $30 billion settlement between the payment processing giants Visa and Mastercard and the merchants who say they’ve overpaid on swipe fees.
THE SUPREME COURT RULES FOR BIDEN ADMINISTRATION IN A SOCIAL MEDIA DISPUTE WITH CONSERVATIVE STATES
The Supreme Court this week sided with the Biden administration in a dispute with Republican-led states over how far the federal government can go to combat controversial social media posts on topics including COVID-19 and election security.
PEACE (AND PIECES) OF MIND 'INSIDE OUT 2'
Sequels have been a touchy subject when it comes to Pixar, but it’s hard to deny the natural premise of “Inside Out 2.”
STILL NEED YOUR LANDLINE? CALIFORNIA REGULATORS JUST STOPPED AT&T FROM PULLING THE PLUG
California’s Public Utilities Commission rejected AT&T’s application to stop providing landlines and other services in areas where there is no other option.
GM BRINGS IN NEW CEO TO STEER TROUBLED CRUISE ROBOTAXI SERVICE WHILE WAYMO RAMPS UP IN SAN FRANCISCO
General Motors this week named a veteran technology executive with roots in the video game industry to steer its troubled robotaxi service Cruise as it tries to recover from a gruesome collision that triggered the suspension of its California license.
SOUTHWEST AIRLINES SAYS A KEY MEASURE OF PRICING POWER WILL BE WEAKER THAN EXPECTED IN 20
Southwest Airlines, already under pressure from a hedge fund for disappointing financial results, said Wednesday that a key revenue ratio will be weaker than expected because of changes in how consumers book travel.
WHERE TECH, POLITICS & GIVING MEET: CEO NICOLE TAYLOR CONSIDERS SILICON VALLEY'S BUSY INTERSECTION
Nicole Taylor has an insider’s view of philanthropic trends from her seat as the president and CEO of the Silicon Valley Community Foundation.
UN LAUNCHES GLOBAL PRINCIPLES TO COMBAT ONLINE HATE AND DEMANDS BIG TECH TAKE ACTION NOW
The United Nations chief this week launched global principles to combat online hate and lies and demanded that big tech companies use their power to reduce the harm they are doing to people and societies around the world.
FACIAL RECOGNITION STARTUP CLEARVIEW AI SETTLES PRIVACY SUIT
Facial recognition startup Clearview AI reached a settlement in an Illinois lawsuit alleging its massive photographic collection of faces violated the subjects’ privacy rights, a deal that attorneys estimate could be worth more than $50 million.
HOW NVIDIA BECAME AN AI GIANT
It all started at a Denny’s in San Jose in 1993.