The Ottawa government joins the US and Europe in taxing battery-powered cars produced in the eastern country, which in the meantime is taking control of the automotive market that goes from Mexico to Brazil
Taxes against logic, demagogy against chinese electric car which does not have the merit of weakening Beijing at all, but rather of strengthening its role at a global level as a producer of traditional and hybrid vehicles. The last on the list to be added to the “hostile block”, il Canadawhich has just decided to impose a 100% customs duty on Chinese-made battery-powered cars sold on its territory. A move that Prime Minister Justin Trudeau can only justify on a political level, but on a practical level it is disconcerting. Canada, to date, does not import any Chinese-made electric cars except for the Tesla Model Y produced in Shanghai. On the other hand, the vast majority of 1.5 million vehicles produced in the country they are gasoline-powered and exported to the United States, demonstrating a zero potential risk to the national economy, except that of ridicule.
Victory Park
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Everyone knows the rule of Monopolywin by forcing those who pass on the squares you own to pay a lot. Beyond demagogy, here instead we find a strategic error. The electric car does not yield as “Victory Park”We are at the last minute of “Short Alley” o “Narrow Alley”. Il Canada now it is added to United States ed European Union in considering battery-powered vehicles as the primary interest of China’s export economy, without paying attention to the substance of local car production ibride plug-in literally took off in the last 12 months, in addition to the sensational investments made on Hybrid and traditional enginesaimed directly at export. The potential is herebut nobody watches it. Since last May, in the Usa Tariffs on Chinese electric cars have been multiplied from 27.5% to 102.5%, but in the first quarter of 2024, Geely was the only Chinese manufacturer to export under its own brand to the United States, where it sold 2,217 vehicles, according to data from the China Passenger Car Association. TheEuropean Unionfor its part, has just reduced the quotas of the provisional duties on Chinese electric cars imposed in July, up to a maximum of 36.3% against the 37.6% previously foreseen and which in any case is added to the 10% already existing, in definitive form, for all imported cars. Tesla obtained the reduction to 9%, also Byd to 17.0% and Geely to 19.3%, while those who were judged “less collaborative” with the Brussels authorities obtained duties on average of 20.3%, while Saic and all the other manufacturers are penalized with the maximum of 36.3%.
Operation Salsa and Merengue
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Il Diplomacy dance It’s not particularly exciting, with China threatening against Canada the same reaction it had against the European Union, namely the opening of a dispute before the World Trade Organizationthe World Trade Organization which would eventually intervene with a contestation within 60 days, or with the effectiveness of a parking fine. The true rhythm to which China has it is already elsewhere, and it is devastating. In 2019, the Great Wall was already exporting to the Sud America cars worth 2.2 billion dollars, which will rise to 8.5 billion in 2023 according to the United Nations International Trade Center (ITC). No other market is worth so much for China, which plays here first and foremost the traditional and hybrid car gamecapable of displacing the European and American brands that have dominated the sales charts for decades. In Chile 30% of the cars sold are Chinese, with percentages also increasing rapidly in Mexico and of course in the immense Brazildominated so far by Fiat-Stellantis, Volkswagen and General Motors, and which in April also became the largest export market for Chinese new energy vehicles, a category that includes both electric and plug-in hybrids. According to data from the China Passenger Car Association (CPCA), exports are increased 13 times compared to the same period in 2023. Incidentally, Chile, Bolivia e Argentina they possess 56% of global lithium reserves necessary for the manufacture of batteries. To impose themselves with traditional or hybrid cars and then control the raw materials necessary for electric ones, this is what is really happening: the creation of research centers, the purchase of mines and the construction of Chinese gigafactories in South America. If even the Canadian government imposes duties, perhaps it intends to sleep more peacefully. Too bad they are unaware.
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2024-08-30 18:08:46
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