By WhichEV
Around 60% of the electric cars produced in the world come from China. Until recently, most were sold internally, to drivers in China – but the Chinese know that they have a ‘winning offer’ and are looking to expand globally over the next 10 years. Unable to compete on a price-innovation-quality basis, the US has announced a 100% tariff on Chinese EVs. The swapping of economic punches will continue, so where does that leave British drivers?
WhichEV recently reported on the 100% tariff that the US decided to impose on EVs coming into the States from China. This isn’t the first time in recent history where the United States has implemented ‘protectionist’ policies.
It previously curtailed Chinese companies’ access to Google software, including operating systems and the Google Play Store. This move aimed to limit the technological capabilities and market appeal of Chinese smartphones internationally, aligning with US efforts to mitigate security risks and reduce tech dependencies. This move had the side-effect of forcing China to develop alternative systems – potentially leading to increased global technological divergence and much more competition for US products.
The US also restricted Chinese access to ARM processors, essential for mobile devices and emerging tech applications. This measure aimed to block China from acquiring advanced computing technologies, potentially enhancing both civilian and military capabilities. This disruption compelled China to accelerate its semiconductor development – creating more competition in the global market.
With additional threats to its access to high-tech chips, China has decided to move away from relying on Qualcomm processors and chipsets for its future automotive communications plans. This is a significant development, likely aligning with the broader strategy of technological independence and reduced dependency on Western technology.
