Trump government wants to reduce fuel emission standards | Foreign media: good for China's auto industry

According to foreign media reports, on August 2, local time, the Trump administration announced a proposal to reduce the fuel emission standards of the Obama era. At the same time, the fuel emission reduction standards proposed by the Obama era will be frozen after 2020. This year. In April, Scott Pruitt, then director of the US Environmental Protection Agency, said the current fuel emission standards are too high, which is inconsistent with reality. But on a global scale, the standard actually helps US automakers remain competitive because other countries (especially China) is gradually transitioning to a low-carbon economy. Whether it is from a market, security or environmental perspective, the Trump administration is wrong to encourage automakers to make obsolete in a growing global market. Car, and hand over market leadership to China.

Vehicle emission standards provide incentives for US automakers to produce and sell low-carbon vehicles, especially electric vehicles, because they are cleaner and more efficient than gasoline-powered cars and trucks. To meet standards, automakers can produce these cars. Points can also be purchased from other car companies with more mature electric or alternative fuel vehicle production lines. The rules are flexible and critical to maintaining US leadership in electric vehicle manufacturing. According to the Institute of Environment and Energy (EESI) It is said that policy support plays an important role in the development and deployment of electric vehicles in the United States and China, and is also the reason why the two countries are in the world's leading position in the registration of electric vehicles. Lowering fuel emission standards may alleviate the investment of electric vehicles by automakers in the short term. The pressure on the car, but in the long run, it will have a major impact on the United States.

Last year, global electric vehicle sales exceeded the million mark for the first time. From 2013 to 2017, the price of battery packs dropped by 65%. As the demand for electric vehicles in the world continues to rise, the price of battery packs will further decrease. China recently joined The United Kingdom, France, Norway and India are committed to phasing out gas vehicles in the coming decades. Even Exxon, BP and OPEC also expect electric cars by 2040. Demand will increase dramatically, and the most aggressive market prospects show that by 2040, electric vehicles will account for more than 30% of the global total.

The United States is strong in electric vehicles, and China is still in a leading position. In 2017, half of the world's electric vehicles are produced in China, and the demand for electric vehicles in China will triple by 2022. The Chinese government is providing generous incentives. Measures to expand the production and sales of electric vehicles, and more importantly, China also intends to provide generous conditions for foreign automakers producing electric vehicles in China. US companies such as Ford and GM have announced large-scale investments in the Chinese electric vehicle market. The chairman of Ford Motor Company even publicly stated that 'China will be in the leading position in the electric vehicle market'.

In 2017, the United States accounted for 17% of global electric vehicle production, second only to China. China's domestic policies are spurring significant growth in the electric vehicle market, and consumer demand is increasing. The American Automobile Association (AAA) recently The data shows that when buying the next car, one of the five drivers chose an electric car, and the drivers were less worried about the battery being low when driving the electric car.

As electric vehicles continue to grow, and billions of dollars of investment are being tracked at a critical juncture, freezing current fuel efficiency standards means giving the growing electric vehicle market to China and bringing to American automakers Unnecessary regulatory uncertainty. The Trump administration should maintain current standards, otherwise it would encourage American automakers to produce outdated cars in an increasingly electrified era.

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