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China’s Unfair Trade Practices Are Evident In Their Electric Car Regulations: What Can The U.S. Do?

ArmchairPolitiicianChina, October 2, 2017, by Brad Peery, WWW.ArmchairPolitician.US,

ArmchairPolitician.US@gmail.com

*The U.S. has been examining unfair trade practices that China uses to increase U.S. exports from China, reduce U.S. imports, and steal U.S. technology, among other issues. They have announced government regulations of the auto industry that will require auto makers to meet government requirements that certain percentages of the autos sold be electric, in a yearly quota mandate, with non-electric autos eventually being eliminated.
*China Speeds Push for Electric Vehicles, Wall Street Journal, by Yoko Kubota and Trefor Moss, Sept. 28, 2017

The automobile companies that wish to sell autos in China must accelerate electric automobile sales by 2019. There is a global push worldwide to build electric automobiles, so it is not surprising that China wishes to accelerate their use, particularly with the air pollution problems in the country. The UK and France intend to sell only electric vehicles by 2040. India plans to sell only electric vehicles by 2030. The issues are what China requires of foreign automobile manufacturers that are unfair trade practices.

In April, 2017, the preliminary electric automobile plans for China were announced, but Chinese automobile manufacturers, many of them government owned, had been previously made aware of the plans, giving them a competitive advantage. This was a clear unfair trade practice given to Chinese auto manufacturers.

Based upon the preliminary plans, Ford, Renault-Nissan, and Volkswagen have all set up new electric car joint ventures with local companies, as required by the Chinese government. China is focusing on dominating the electric car industry, and these required joint ventures are a way for local Chinese companies to steal foreign car manufacturer technology.

The Chinese electric car plan involves yearly quota increases in pure-electric, plug-in hybrids, and fuel cell cars. The key requirement is for each company is to reach electric car production levels equal to 12% of all of their Chinese car sales in 2020. Many of the car companies have said that this is an aggressive schedule. China has said that it will eventually require that all cars sold in China be electric, but has not set a date. An immediate issue for the auto manufacturers is to find a market for the electric vehicles they are required to produce. The electric cars today can go about 300 miles before they need a recharge. The infrastructure for local car recharging, and recharging while on longer trips will take time to develop, and gaining consumer acceptance of the requirements will take time to develop.

ArmchairPolitician.US. Opinion:
One of the issues is that China has severe trade restrictions that disadvantage foreign car manufacturers; They favor Chinese companies with advance notice of their plans; Foreign car manufacturers must set up joint manufacturing operations with local companies, forcing the foreign companies to transfer their electric car manufacturing technology to Chinese companies; and, there are tariffs on foreign imports that force companies to manufacture electric cars in China, if they want to participate in the China market, and thus reducing auto imports.

**An example of these tariffs is: “A Jeep Wrangler can cost $30,000 more in China than in the United States — and the reasons illustrate a growing point of tension between the two countries. Manufactured in Toledo, Ohio, the Wrangler is equipped with a 3.6-liter engine and a five-speed automatic transmission, the Rubicon edition of the Wrangler has a suggested retail price of $40,530 in the United States. But in China, the same vehicle would set a buyer back by a hefty $71,000, mostly because of taxes that Beijing charges on every car, minivan and sport utility vehicle that is made in another country and brought to China’s shores.”
**China’s Taxes on Imported Cars Feed Trade Tensions With U.S., New York Times, By Keith Bradsher, March 20, 2017

An important element that is occurring is the push by China to dominate electric car manufacturing through the unfair trade practices they use to dominate local Chinese markets, and prepare for Chinese company domination of the global market. The world is going toward electric vehicles; and, U.S. companies such as Tesla, and the U.S. car manufacturers will need to develop electric cars that can sell worldwide, but at the same time many of the U.S. companies are forced to develop Chinese operations that will reduce jobs that could exist in the U.S.
See:
ArmchairPolitician.china, August 12, 2017, By Brad Peery, WWW.ArmchairPolitician.US, ArmchairPolitician.US@gmail.com
The U.S. Faces Many Trade Barriers: How Can Fair Trade Be Achieved?
See Also:
ArmchairPolitiicianTrade, February 26, 2017, by Brad Peery, WWW.ArmchairPolitician.US, ArmchairPolitician.US@gmail.com
Trade Deficit Issue: The Largest Trade Deficits are with Mexico, Germany, Japan and China. Autos are an Important Component.

56 comments to China’s Unfair Trade Practices Are Evident In Their Electric Car Regulations: What Can The U.S. Do?

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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      I look at this as the first edition of what will be our first of publication. I plan to update the book about every 3-4 months as an update to our blog site http://WWW.ArmchairPolitician.US. I plan to continue posting political blogs on http://WWW.ArmchairPolitician.U.S.

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      We at ArmchairPolitician.US have published our first book on Amazon. We have also published it on Kindle. Its title is: Trump’s Political Agenda and Achievements, By ArmchairPolitician.US and Brad Peery.

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      Brad Peery & ArmchairPolitician.US

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      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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      I thought you might have an interest in getting an update on our website that is organized by subject, making it easier for you to get an overall picture of each of the subjects, countries, and events that are going on and affect U.S political issues and possible solutions.

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      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
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      Blog Site: http://WWW.ArmchairPolitician.US
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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      Blog Site: http://WWW.ArmchairPolitician.US
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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      Brad Peery & ArmchairPolitician.US

      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      Brad Peery & ArmchairPolitician.US

      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      Brad Peery & ArmchairPolitician.US

      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      Brad Peery & ArmchairPolitician.US

      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      Brad Peery & ArmchairPolitician.US

      Book: WWW. Amazon.com, Trump’s Political Agenda and Achievements
      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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      ArmchairPolitician.US book on Amazon and Kindle, Title: Trump’s Political Agenda and Achievements

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      We at ArmchairPolitician.US have published our first book on Amazon. We have also published it on Kindle. Its title is: Trump’s Political Agenda and Achievements, By ArmchairPolitician.US and Brad Peery.

      I thought you might have an interest in getting an update on our website that is organized by subject, making it easier for you to get an overall picture of each of the subjects, countries, and events that are going on and affect U.S political issues and possible solutions.

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      Brad Peery & ArmchairPolitician.US

      Book: http://WWW.Amazon.com, Trump’s Political Agenda and Achievements

      Blog Site: http://WWW.ArmchairPolitician.US
      Email: ArmchairPolitician.US@gmail.com

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