China’s President Vows To Reduce Auto Tariffs, Elon Overjoyed

APR 11 2018 BY MARK KANE 31

The automotive industry is one of the most influenced by the Chinese policy of promoting Chinese business over foreign.

China Is Second To Only U.S. In Tesla Model 3 Pre-Orders

China Is Second To Only U.S. In Tesla Model 3 Pre-Orders

For years, there were requirements to set up joint ventures with Chinese companies (at least 50% share) to produce and sell cars in China, which for foreign manufacturers could mean loss of control over technology.

On the other hand, a 25% import tax on cars prevented competition through import. There were also other policies like subsidies for New Energy Vehicles (only with batteries produced locally) and more.

The recent move made by President Trump (who heard Elon Musk’s complaints) is kind of an answer to the general disproportion of how businesses are treated in China and the U.S. (not only automotive ones).

Read Also – Trump’s Trade War With China Could Hit Tesla Hard

The Chinese government recently hinted at lowering tariffs for foreign cars and also reducing requirements for the joint ventures. It would enable Tesla to sell more cars in China and even build a new factory there. It seems that Elon Musk is happy with this.

We will see whether or not there really will be positive progress or if the tariff war will expand in the coming days.

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31 Comments on "China’s President Vows To Reduce Auto Tariffs, Elon Overjoyed"

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CDAVIS

America’s politicians have for far too long allowed China to engage in unfair trade practices against the U.S. Hopefully that is indeed changing.

albertito

The US have promoted war and massacres all over the world, so don’t speak about unfair things, and take responsability for whole pack of actions.

If the the US didn’t attack everybody , China, North Korea, Iran , Russia and other countries won’t armed theyselves like they did.

I don’t know where are you from, but outside the US, everybody is very critic about US war and exterior policies.

ClarksonCote

Are you really going to claim the US just “attacks” everybody while Russia annexes land from a sovereign country? The only places we have attacked have been humanitarian disasters needing intervention. And to be clear that’s not saying that I claim we should attack, but don’t paint with such broad strokes.

albertito

jajajajajajajajajajaajajajajjaaj-JA!

randomhuman

Yea the US always brings „democracy“ to other countries…like in Lybia for example. The US has no after war strategies. But that’s not the plan I guess. Otherwise you wouldn’t make war everywhere. More then 10000 people died so far in the Ukraine because of the conflict (i suppose you mean this war) and that is really sad and shouldn’t happen. But the Iraq war with hundreds of thousand dead is certainly a different thing because it was an war of aggression by the US with no UN mandate and against the UN charter. And this unlawful act really shows what the Us wants … war. And none of these two countries is better than the other so don’t pretend you only attack because of human disasters. You’re not morally superior to Russia. War is war and the US is also on the forefront on breaking human rights every second.

Pushmi-Pullyu

Sometimes the Russian trolls don’t even try to hide who they are!

Putin wants the world to believe that Western democracies, especially the USA, are “just as bad” as Russia, to make his own Soviet-style aggression look less bad by comparison.

The USA is “just as bad” as Russia? Well, I think it’s safe to say most Ukranians wouldn’t agree! And even as badly as El Trumpo is treating Mexico, they’re still not worried about the U.S. Army rolling across their border.

randomhuman

I’m not really a Russian troll and I don’t live in either one of these countries. I am just not a fan of both countries politics and war efforts.

Yea I know but I’m not basing my asssumptions on the democracy of both countries. I’m basing them on the actions. And both countries are not doing very great in those categories. But there are also many other countries I don’t like including mine because of their actions.

I think it’s safe to say most people in Iraq and Lybia would have a different opinion about the US too. As I said it’s not about who is worse than the other. It’s about reflecting the actions both countries are engaged in. And that goes not well for both countries. So instead of addressing me as Russian troll you could’ve said something more substantial instead of just pointing at another countries misactions. Because I didn’t read a word in your comment about Iraq or Lybia. What is your say on that. Was it right or not? Simple answer.

Pushmi-Pullyu

“I’m not really a Russian troll…”

Then you are a “useful idiot” for Putin and his Russian troll farms, helping to spread their divisive, tribalist agitprop.

Is that any better? At least the actual Russian troll farm employees get paid for the same thing you’re doing for free! And at least the paid trolls generally don’t fall into the trap of believing their own lies.

Either way, why are you here? Obviously you’re not interested in EVs.

randomhuman

I don’t know what your problem is but calling other people idiots reveals more about you then about me.

I don’t have to get paid for an opinion I have which is actually based on facts. But you’re either ignoring them or just don’t care about them. I don’t know why many Americans can’t handle critic. It’s not to personally attack you. It’s just to point out certain problems and misactions by countries. Or do you generally don’t talk about problems in the world? By the way you didn’t answer my question.

I am very interested in EVs that’s why I’m here most of the time. But I’m also very interested in politics. I just don’t write comments very often but from time to time yes.

Pushmi-Pullyu

@albertito

So, do you actually work for a Russian troll farm? Or are you just a “useful idiot” for them, helping them spread divisiveness and tribalism in America?

(⌐■_■) Trollnonymous

The WTO has to take partial blame for the mess everyone is in with China. China hasn’t been an “Emerging Economy” for umpteen years. I’m pretty sure the WTO’s policies are outdated and irrelevant now.

The trade balance needs to be 1:1 and we shouldn’t settle for any different.

Brian

US tarrifs on foriegn pickup trucks and cargo vans would go away too?

Pushmi-Pullyu

Yes, the way the WTO treats China is rather outdated. China has updated its economy, but the WTO hasn’t changed its rules for the country which now has the second strongest economy in the world.

This is why the U.S. should have taken a more strategic approach towards the ongoing trade war with China, rather than letting the Orange Wannabe Dictator suddenly impose tariffs and threaten more, only to distract from the latest scandals in his administration. Unilaterally exiting from the TPP (Trans-Pacific Partnership) was the first stupid move down this path by the Orange One, and now he’s made it a lot worse. Our TPP partners should have been allies in this trade war, and now they’re not, which has left China with even more economic influence in Asia.

Hopefully whoever replaces the Cheeto-in-Chief will adapt a better strategy in this trade war than the guy currently occupying the White House, who couldn’t even win a game of checkers.

Mark.ca

Elon better relax and not take Xi too seriously, they been promising this for years now but never gets done. It’s simply not in their interest to make fast moves.

Chris O

yes, but sofar China has been dealing with reasonable US presidents that could be made to understand that any attempts to level the playing field was not in their interest. Now it’s dealing with an unguided projectile instinctively reacting to the latest news flash without bothering to first educate himself which might have unexpected results ranging from an unexpected short term more level playing field to all out nuclear war.

Another Euro point of view

It could be if their car industry plans to start to export outside China in a near future. Then it is in their best interest to suppress the import tariff while expecting same treatment from countries that will be recipient of their exports. It could be for example cars made by GM in China exported to the USA. Specific production lines for export products. The type of row materials (cobalt) supply agreements Chinese companies entered into recently are so massive that EV cars exports is not uniquely.

Ron M

You heard it from me a year ago. The Chinese people and it’s politicians like Musk and Tesla products. The Chinese want Tesla cars and they want them cheaper and they want them now. Just like Americans they want the best product at the best price. Eliminating the 25% tariff on Tesla will also help the environment and that is something China wants.

Another Euro point of view

“The Chinese want Tesla cars”

Is what you wrote somehow supported or you got that out of a dark place ? I will eagerly check the March figures but last time I watched sales statistics regarding EV sale in China, Model S & Model X did not even make it into the top twenty.

Ron M

They haven’t lifted the tariffs yet; but it will happened before the end of the year.
It’s my prediction I believe my predictions are better than Goodman Sachs

Chris O

Tesla sales are a drop in the bucket in the Chinese market being a high end import, yet China is 17% of Tesla sales. So relatively speaking the Chinese are pretty much into Tesla, despite a 25% tariff barrier, less/no incentives for imports and no Model 3 yet available.

Another Euro point of view

OK, as per a % of total Tesla sales approach it makes indeed sense.

Pushmi-Pullyu

“Is what you wrote somehow supported…?”

WOW! Is there some test where someone who wants to become a serial Tesla basher has to show he has abandoned all logic and reason? If so, you must have gotten an “A+” on the test!

Are you seriously trying to dispute that Tesla cars are wildly popular and very much in demand in China, merely because most Chinese car buyers can’t afford them? If so, then you are woefully clueless on the subject!

Perhaps you don’t know that demand for Tesla cars in China at one time reached such a fever pitch that there were angry demonstrations over delays in deliveries?

https://insideevs.com/chinese-tesla-model-s-owner-smashes-his-car-in-protest-of-teslas-arrogance/

Perhaps you don’t know that Tesla doubled its sales in China last year?

https://electrek.co/2018/02/23/tesla-china-double-sales-expanded/

Jeff Songster

Most of this Trade war nonsense is simply a symptom of excessive capitalism… the same folks whining now about unfair treatment by other countries are the folks who were shuttering our factories to make an extra buck on all the things the US used to make. In the 70s it was the TV industry shifting to Japan and then on to Korea and China… followed by computers etc etc. We also until recently dumped all our e waste on all the other countries of the world that had lousy protections against this kind of eco destruction policies based on companies making a buck off the current sales without dealing with the consequences. Come on folks… Toss out the oligarchs and fix the real problems.

Tom
I think it is imperative to ratchet the Trump hysterics down a notch and work with the guy when he’s right. He’s right about China. This was a consistent and persistent position of holding China’s feet to the fire until the purist liberals in California decided they cared more about their iPhone than about some worker in Ohio and abandoned the US labor force and let China dump product which by the way mostly can’t be produced any cheaper without the direct subsidies and support from the Chinese government. For Democrats who supposedly were for the middle class for decades to abandon those positions and pretend they’ve always been for free trade is ludicrous and dishonest. It’s ok to agree with someone you despise when it is appropriate. He’s right. He won a major concession that was important without upsetting anything other than a few feelings. Get over it and go back to opposing him on real things where he’s wrong or otherwise risk becoming just the clanging noise in the wind of everything is an emergency and all is evil. Same issue on steel and aluminum. The second shoe dropped on aluminum which must have been planned the whole… Read more »
(⌐■_■) Trollnonymous

“It’s ok to agree with someone you despise when it is appropriate. ”

Well, I’ll have to agree with you there, I don’t despise you.
Good statement.

Pushmi-Pullyu

“He’s right. He won a major concession that was important without upsetting anything other than a few feelings.”

You have confused the Chinese repeating the same meaningless platitudes about international trade that they’ve been saying for years, with an actual concession on their part.

I will of course hope that this time it’s different; that China will follow words with actions. But hope is not belief. To actually believe that China will so easily cave in to bullying by the Cheeto-in-Chief would be… well, what is it that Einstein said* about that? “Insanity is doing the same thing over and over again and expecting different results.”

*Or at least it’s attributed to him. Whether or not he actually said that seems to be in dispute.

Pushmi-Pullyu

It would be wonderful to think the nice things said by the Chinese would be followed by actions, but news analysts point out that Chinese spokesmen have said similar things in the past, without any acting following.

I agree with the Cheeto-in-Chief on one thing: We are already in a trade war with China, and we’ve been losing for years. But turning this situation around needs careful planning and as many allies as we can get on the international stage.

We need a President (and a Cabinet) who understands the concept of partnerships, of a “win-win” relationship, and doesn’t treat every relationship with others — both personal and international relations between countries — as a zero-sum game! So the sooner we throw the Big Cheeto out of the White House, the better for every American, including those misguided Americans who believe so much fake news that they still support him.

Don Zenga

This time they will do because they want make Yuan an international currency. Besides with a 21 trillion $ national debt, US cannot continue to import and borrow and accumulate debt. If PetroYuan becomes international currency, then the US has to compete with them for borrowings and this will increase the interest rate and the interest paid eventually forcing the country to cut down on spendings.

Don Zenga

It’s a Win-Win-Win proposition.

Win for USA that Tesla can sell more cars, create jobs here and reduce trade deficit.

Win for China that they can import more electric cars, reduce pollution and also the foreign oil.

Win for Earth that pollution is drastically reduced and many people, animals, plants breathe fresh air and drink cleaner water.

Thanks to the leaders of both nations for taking dynamic decisions.
Sorry for not mentioning GM/Ford as they don’t sell any EVs there.

Oh I did not mention VW, MB, Fiat, Peugeot and their chiefs must be crying.

Don Zenga

Chinese purchased nearly 68,000 new energy vehicles in 2018-03 and this takes the last month’s tally to 100,000 with just the sales of China, USA & France included.

Last year, the 100,000 target was achieved in June and this year, it happened in March (full 3 months ahead). With the increase in Model-3 sales, I guess every month from now will see a 100,000 sales Worldwide.

zll

Thank you President Trump!