China’s plan to dominate EV sales around the world

🌈 Abstract

The article discusses the rise of Chinese investment in electric vehicle manufacturing in emerging markets, particularly in Brazil, as the US and Europe implement protectionist policies that shut out Chinese EV makers from their markets.

🙋 Q&A

[01] The Resurrection of a Car Plant in Brazil's Northeast

1. What is the significance of BYD taking over the old Ford factory in Camaçari, Brazil?

• The takeover of the abandoned Ford factory by the Chinese conglomerate BYD is seen as a symbol of China's global advance and the West's retreat.
• BYD is setting up its first carmaking hub outside of Asia at this site in Bahia state, Brazil, with a $1 billion-plus investment plan to produce electric and hybrid vehicles, as well as bus and truck chassis and battery materials.

2. What was the context of Lula's meeting with BYD's founder in China?

• During Luiz Inácio Lula da Silva's visit to China as Brazil's president, he met with BYD's billionaire founder and chair, Wang Chuanfu, after which BYD decided to set up its first carmaking hub outside of Asia in Brazil.

[02] China's Dominance in Emerging Markets

1. How are the US and EU's protectionist policies impacting China's EV makers globally?

• The new tariffs and restrictions on Chinese investment imposed by the US and EU are effectively shutting out China's world-leading EV makers from their markets.
• This is forcing China's leading EV players to sharpen their focus on markets in the rest of the world, including Southeast Asia, Latin America, and the Middle East, where they are aggressively expanding.

2. What is the view on the long-term impact of the US and EU's protectionist measures?

• Experts argue that the US and EU's protectionist policies will lead to Chinese dominance across the world's most important emerging markets, as these markets become open to aggressive Chinese expansion in the EV sector.
• This is seen as the "part that seems to be lost" in the discussion of using tariffs to slow down the Chinese advance, as it leaves the rest of the world open to Chinese dominance.