Source: Foreign Policy
by Jorge Guajardo
“The European Union and United States have joined in levying tariffs on Chinese electric vehicles, with the EU blaming Chinese subsidies, while the United States points at overcapacity. China does have a big overcapacity problem in its manufacturing sector, but electric vehicles are not the best example of this. The challenge Chinese EV car companies present to Western legacy manufacturers is not because they are low-value or sold below market prices. The challenge is that Chinese EVs are better. Washington and Brussels are adopting the same protectionist strategies that Latin American states once did—and if they don’t have an exit strategy, they risk trapping themselves in an economic dead end.” (06/24/24)