Influential Senator Calls for Ban on Chinese Electric Vehicles in the US
In a bold move that could have far-reaching implications for the automotive industry, US Senator Sherrod Brown has called on President Joe Biden to ban electric vehicles (EVs) from Chinese brands. Brown believes that Chinese EVs, such as those produced by companies like BYD and MG, pose an existential threat to the US automotive industry due to heavy subsidies provided by the Chinese government.
Chinese EVs, which have been heavily subsidized, are seen as having an unfair advantage in the market. In fact, BYD alone has received almost $4 billion in direct help from the Chinese government in 2022. This has raised concerns not only in the US but also in the European Union (EU), which has launched an investigation into whether Chinese government subsidies are giving Chinese brands an unfair advantage.
The EU has even threatened retroactive tariffs on imports of Chinese EVs, as Chinese brands are already making inroads into markets like Mexico, causing concern for American automakers. Ford CEO Jim Farley and Tesla CEO Elon Musk both see Chinese automakers as main competitors, with Musk going as far as to say that Chinese EVs could demolish most other car companies in the world.
Senator Joshua Hawley has also voiced his support for protecting the domestic manufacturing base by calling for a tax increase on Chinese EVs. Brown, on the other hand, is more concerned about the security risks posed by Chinese-connected cars, prompting the Commerce Department to launch an investigation into the matter.
Brown firmly believes that banning Chinese EVs is necessary to protect the US EV market and American manufacturing industry. With the automotive landscape rapidly evolving, it remains to be seen how President Biden will respond to Brown’s call for action. Stay tuned to Guam News Factor for the latest developments on this contentious issue.
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