The growth of China’s electric vehicle (EV) exports is evident from the data. In 2023, the export value of Chinese pure electric vehicles saw a significant increase of 70 percent, reaching $34.1 billion. Concerns are rising in Europe and the United States as they closely monitor China’s expansion in the global EV market and consider implementing trade measures in response.
In March 2024, the Biden administration labeled Chinese electric vehicles as a national security risk. During a visit to China in April, U.S. Treasury Secretary Janet Yellen criticized China’s excess production, especially in green sectors, highlighting the issue of “overcapacity” and its potential threat to U.S. electric vehicle and solar industries.
Meanwhile, the European Union initiated an anti-subsidy investigation into imports of pure electric vehicles from China in October of the previous year. It is expected that anti-subsidy duties will be imposed on Chinese automotive companies in 2024.
China is apprehensive about the European and U.S. crackdown on its electric vehicles due to signs of weakening domestic demand, which could lead to a significant reduction in its EV exports.
The differing approaches of the European Union and the United States in countering Chinese electric vehicles underscore clear divergences in their strategies and the effectiveness of their measures.