At about 0:50 in Beijing time on March 23rd, US President Trump signed a formal memorandum of trade with China in the White House. Trump announced that it will be possible to impose tariffs on goods imported from China of 60 billion U.S. dollars. Chinese companies invest in U.S. mergers and acquisitions.
As the United States fired the first shot of its trade war with China, the Ministry of Commerce of the People's Republic of China issued a counterattack strategy at 7:00 on March 23. It aimed to suspend the list of concession products for US imports of steel and aluminum products 232 measures and solicit public opinions. Imports of approximately US$3 billion in products are subject to tariffs to balance the losses caused by the United States adding tariffs on imported steel and aluminum products to China’s interests.
For this extremely influential trade war between China and the United States, Douglas said that if the vehicle continues to be fermented, it will surely involve various fields such as automobiles and airplanes. It will be an inevitable major factor for many Chinese self-owned car companies in the United States. Blow.
Trump's Abacus
Some time ago, Tesla's founder, Musk, repeatedly complained to Trump on Twitter, complaining about the difference in import tariffs between the two sides. But Trump, as a politician, was early on in his mind to lay down his calculations.
Earlier in the Trump and Hillary campaigns, tax reform and trade protection had been an important part of Trump's campaign commitments. After promoting the tax reform in 2017, Trump put trade protection as an important issue in 2018. The purpose of provoking the Sino-U.S. trade war is to directly force China to further open its markets to the United States with a serious imbalance in Sino-U.S. trade. The purpose of this in-depth study is to try to repeat the trade war between the United States and Japan in the 1980s to curb China’s revival.
And, in November of this year, the United States will usher in the parliamentary mid-term elections, and the upcoming May will be the intensive polling period for the mid-term elections, which will be crucial to the final result. Trump consolidates the ballots in the hands of the people on the grounds of the 'trade protection war'. In order to maintain the Republican position in the Senate and the House of Representatives and strive for future reappointments.
Recalling the US-Japan Automobile Trade War
After the 1980s, Japanese cars quickly swept through the US market. At the time, 1 in every 4 vehicles in the US market was Japanese cars, while American cars accounted for only 1.5% of the Japanese market. From 1979-1992 on the United States and Japan. Negotiations on the sharpening of the automobile trade have hardly stopped. In the early 1990s, the US-Japan auto trade deficit accounted for 3/4 of the U.S. trade deficit with Japan. The U.S. government official Brzezinski said: 'The end of the Cold War, the losers were the Soviet Union. The winner is not the United States but Japan. '
In the 1995 Japan-US automobile trade war, the third round of Japan-U.S. auto trade talks broke down. The two sides did not reach an agreement on the issue of auto parts trade. Clinton retaliated against Japan and announced that it would be against Toyota, Nissan, Mazda, Mitsubishi and others. Japan’s luxury limousines levied 100% tariffs and threatened to impose aviation sanctions on Japan. After several rounds of sawing negotiations, the two parties finally reached an agreement. Japan agreed to relax controls in the domestic auto parts market, reducing the number of cars exported to the United States from 2.3 million. To 1.65 million vehicles. Although the United States finally knocked on Japan’s national borders, US cars are still far from satisfactory in the Japanese automobile market.
What impact will China and the United States have on the automotive industry?
China and the United States are both big manufacturers of automobile production and sales, but compared to the base of the annual sales of more than 20 million vehicles in the Chinese market, the number of import and export cars of the two sides is not as much as imagined. The consumption of Chinese cars is still more in terms of domestic demand. Lord, the U.S. car exports can only be described as superficial 'tips'. However, if the trade war between China and U.S. continues to ferment, both parties will increase their auto tariffs. For Tesla, this kind of sales are mostly The car prices that have been completed in the Chinese market are no small blows.
At present, the main imports and exports of China-US auto trade are mainly auto parts. China has about 25% of spare parts, wheels, and tires are all exported to the United States, while the United States has 7% of imported parts, mainly transmission systems. Body accessories, engine parts, etc. In-depth trade war, the impact of both parts of the auto parts industry is undoubtedly the largest.
U.S. car makers hope the government will reduce tariffs on Chinese goods
At present, car companies are still lobbying Trump government officials, hoping to reduce tariffs, lest the Chinese government take retaliatory measures and hinder its efforts in the world's largest auto market. Prior to this, China's Ministry of Commerce had stated that China will never Sit back and see that the legitimate rights and interests have been violated. It will surely take necessary measures to defend its legitimate rights and interests.
John Bozzella, chief executive of the Global Automobile Manufacturers Association, said, 'The problem Mr. President wants to solve does exist, but there are better solutions. In the end, the trade war will hurt US producers and consumers.' Ford Motor Co. said in a statement, 'We hope that both governments can work together to solve the problems between the two major economies.'
The start of the trade war will cast a vague shadow on many Chinese car companies that are committed to international development.
GAC Group, as the only Chinese car company participating in the North American Auto Show in recent years, has been paving the way for its automotive products to enter the U.S. market in 2019. However, for setting up trade barriers in the United States, GAC indicated that it needs to reconsider whether to continue its march. American market.
Compared with the traditional auto companies, BYD, as a domestic new energy 'first brother', has already developed the United States as one of its largest overseas markets. Since 2013, BYD has accumulated including Stanford University and the University of California. Los Angeles, Long Beach Transport Agency and Los Angeles County Metropolitan Transportation Bureau and many other customers, BYD's products have spread across more than 30 states on both sides of the US and East Asia. BYD started production of the first Chinese wholly-owned bus factory as early as May 2013. The third-largest pure electric bus plant in North America, the third phase of the project was completed and put into full operation last year, with an annual production capacity of 1,500 vehicles. At present, BYD already occupies more than 80% of U.S. pure electric buses, if the United States has new The impact of energy vehicles on BYD will not be known for the time being. It also requires constant attention.
Not only BYD, but also Baiteng, Weilai, Faraday Future, and other Chinese companies in the United States have added a bit of uncertainty to their future. It is worth noting that Jia Yueting’s FF91, which is drastic, will be sold this year. As the Sino-U.S. trade war is imminent, I don’t know how Jia’s boss feels...
