Why tariffs on Chinese EVs may not work
In the early 1980s, the Chinese auto industry barely existed. Today the country has the capacity to make about 40 million vehicles annually — enough to supply half the world.
Only about 25 million cars sold in the country in 2023, according to Dunne Insights, a firm that tracks the auto market in China and other Asian countries. To offload the excess, China is increasingly looking to export. It sent cars to more than 100 countries last year, according to Dunne Insights CEO Michael Dunne.
Dunne and other insiders say it's only a matter of time before Chinese-branded cars arrive in the U.S. A few brands, such as Volvo and its subsidiary Polestar, are already owned by a Chinese company, Geely, even though the brands are based in Sweden.
"I call it the great Godzilla," Dunne said. "The world has never seen an auto industry of this size and scale."
Surveys indicate a large share of American shoppers, especially younger ones, would be happy to buy a Chinese car, despite common privacy concerns.
