- Vladimir Putin says Chinese EVs have gotten better and this is spooking the US.
The move by the Joe Biden administration to increase tariffs Chinese goods, including electric vehicles (EVs) has angered China. But sharing the anger with Beijing is key ally Russia as well. Russian President Vladimir Putin recently described the US tariff hike on Chinese good as ‘unfair competition’.
The move to increase tariff particularly affects China-made EVs entering the US market with duties increasing to as much as over 100 per cent and around 50 per cent on semiconductor, a key component used in manufacturing of electronic items as well as in new-age vehicles. And while the US hardly imports any China-made EVs, Reuters highlights the move as more political posturing rather than a practical one.
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China has responded saying it will take ‘resolute measures’ and officials in the country have vowed fierce retaliation. But support is also coming from the country’s northern neighbour with Putin putting his weight behind China. “Unfortunately, the way the world works today, sometimes situations arise related to unfair competition. This is how the Americans recently imposed sanctions on China on electric transport, on electric cars,” he said. “Why? Because Chinese cars have got better.”
Putin made the statement during his state-level visit to China, a tour that is aimed at solidifying Russo-Chinese relations.
The rise of Chinese EVs
Chinese EVs are fast taking over global roads with companies like BYD, Cherry and NIO at the forefront. BYD is competing against Tesla for the global EV crown but recently described the US automobile market as ‘complicated.’ The company has been expanding its presence in European markets as well as those in Asia, including India. One particular model – BYD Seagull – has been sending shivers down the spine of US automakers as well as politicians in the country. Sold in China at around $12,000, it has been well appreciated for its built and drive trait. A low-cost but reliable option, the BYD Seagull, in many ways, is symbolic of how dominant Chinese EV makers can be if they start competing strong in the US markets.
First Published Date: 17 May 2024, 16:31 PM IST