In a recent YouTube video by Sam from The Electric Viking channel, attention was drawn to the U.S. government’s response to reports of cheap Chinese electric vehicles flooding the American market. According to Evans, the U.S. claims that over 2 million jobs have been lost in the past two decades due to cheap Chinese imports, mainly in the automotive industry. Here’s the full story.
China Has Built a Factory in Mexico
Evans raised questions about the implications for B, a Chinese electric vehicle manufacturer’s plans to establish a factory in Mexico. He questioned why the Chinese EV giant would build cars in Mexico only to ship them across the border, suggesting they have their sights set on the lucrative American market.
The Long-Standing Trend
Evans pointed out a long-standing trend in the U.S. – a healthy dose of suspicion towards China taking the wheel of the auto industry. This isn’t just about who’s in office, it seems keeping China in the backseat is a bipartisan goal.
Disrupt the Market
Don’t underestimate China’s EVs, shared Evans. While they might not steal the crown from America’s beloved pickup trucks, he warned they could disrupt the passenger car market. After all, North America is the world’s second-biggest car market, making it a prime target.
China’s Economic Policies
The video also shared the recent trip of Treasury Secretary Janet Yellen to China. She raised concerns about China’s economic policies, particularly how they might disrupt global markets. Specifically, she pointed to China’s wobbly economic foundation – weak consumer spending and a government that throws money at certain industries like EVs, lithium batteries, and solar panels.
Off Balance
Evans agreed with Yellen. China’s subsidies and cutthroat pricing tactics, he said, can throw the whole global market off balance, making it tough for foreign companies to compete.
The Concerns
Janet Yellen also raised concerns about China’s reliance on coal power, even though China is making strides towards a greener future. China has a long history of investing in electric vehicles and renewable energy, and this was acknowledged by analyst Evans.
Tough Competition
However, Evans also pointed out that China’s EV industry faces some tough competition, with some manufacturers even losing money. China’s Commerce Minister, Wang Wensheng, responded to these concerns by highlighting the government’s support for businesses and its focus on innovation that benefits the environment.
The Question
Evans agreed that China is making progress on this front, but he questioned why China is still investing in coal-fired power plants, which pollute the environment.
Not American-Made
Despite the U.S. government’s skepticism toward Chinese EVs entering the American market, Evans suggested that many automotive parts used in American-made cars are sourced from China or other countries.
Look Beyond Brand Names
He shared why it’s important to look beyond brand names and actually check out “most American-made cars” lists. So, which cars are truly American-made? Evans shared that the top spots, numbers 1 through 4, and even the upcoming Cybertruck (number 5), are all Teslas.
Tesla Is Leading
Tesla takes the crown for the most American-made cars. He added that it’s trendy to bash Tesla these days, but here’s the thing: Tesla’s the only American car company making most of its parts and cars right here in the US.
Winning the Car Game
For other manufacturers like General Motors and Ford, Evans shared that a big chunk of their parts actually come from China. That’s how China’s winning the car game, even if it’s not always so obvious. They’re indirectly selling a lot of vehicles in America through these parts.
Share Your Thoughts
So what do you think? Does it matter where the parts come from as long as the car is assembled here? Or should we be prioritizing American-made components too?
