The United States reneged, domestic new energy vehicles or crisis

Early Tuesday, the White House announced it would impose a 25 per cent tariff on $50 billion of Chinese imports, including technology related to "Made in China 2025". The final list will be published by June 15, and once the list is published, the tariff will "come into effect soon".

Moreover, according to the latest news, the Trump administration plans to shorten the validity of some visas issued to Chinese citizens. The policy will be implemented from June 11. It mainly limits the validity period of visas to one year for Chinese students studying robotics,special and high-tech manufacturing. These majors are priority areas for the "Made in China 2025" program..

From the evening of April 5, Trump suddenly ordered the opening of the "301 investigation". Since then, the Sino-U.S. trade war has been raging for nearly two months. There have been countless industries and companies affected in the past two months. The companies that have suffered losses as a result of the trade war are all on the list of Chinese-made 2025.

As the main body of the national economy, the manufacturing industry is known as the "pillar stone." The strength of a country's manufacturing industry will directly determine whether the overall national strength is strong. Since Prime minister Li Keqiang proposed "Made in China 2025" at the two national conferences in 2015, China has made effective progress in digitizing, networking and intellectualizing manufacturing. Great progress has been made in five major projects: the construction of manufacturing innovation centers(industrial technology research bases), smart manufacturing engineering, industrial strong foundation engineering, green manufacturing engineering, and high-end equipment innovation engineering.

But as China struggles to realize its grand vision of "made in China 2025", the US has quietly begun plotting trade frictions and escalating trade wars to hamper China's development of manufacturing.

On the evening of April 16, the U.S. Department of Commerce issued an announcement saying that the U.S. government will prohibit ZTE from purchasing sensitive products from U.S. companies for the next seven years. Affected by the refusal order, ZTE's main business activities have been unable to proceed. Although in the difficult negotiations and mediation between China and the United States, the United States lifted ZTE's sales ban on the 22nd, but the United States boycotts and continues to sanction ZTE's voice is still high.

With the temporary settlement of the ZTE incident, after two days and two nights of intense negotiations between China and the United States, the two sides issued a joint statement. "The two sides agree that effective measures will be taken to substantially reduce the US-China trade deficit in goods. In order to meet the growing consumer needs of the Chinese people and promote high-quality economic development, China will substantially increase its purchases of goods and services from the United States. This also contributes to economic growth and employment in the United States. "

Just 10 days after the market began to recover, the news that the US had imposed a 25 per cent tariff on $50 billion in imports from China undoubtedly stifled the nascent optimism.

As the "hate" of the United States, the China-made 2025 list, the new energy automotive industry in the high-end equipment innovation engineering field has become the hardest hit by the Sino-U.S. trade war. This war without smoke will bring the original difficult development of the new energy car market a huge bad news.

Since July 1, 2018, China will significantly reduce the import tariffs for vehicle vehicles and spare parts: the vehicle tariff will be reduced from 25 % to 15 %, a decrease of 10 percentage points; The duty on spare parts was reduced from 8 % to 25 % to 6 %, and the lowest reduction point was 2 percentage points, and the highest was 19 percentage points.

Foreign automakers have welcomed and offered to reduce tariffs on imported vehicles in the first place, but for domestic automakers, they will lose their advantage in price.

Liushangxi, president of the China Academy of Fiscal Sciences, said the domestic auto industry also needed a gradual process of adjustment after the tariff reduction. The competitive pressure formed by the price reduction of high-end brand cars will promote the unified price reduction of other cars, including domestic cars, and will inevitably force the domestic automotive industry to improve its innovation ability and improve product quality and competitiveness.

However, for domestic new energy vehicles, the headache is not only the reduction in tariffs on imported cars, but also the complete liberalization of the car market five years later. On the 29th, at the "Long wan Forum" held in Ningbo, Li Shufu, chairman of Geely Automobile, said in a speech that five years later, the Chinese automotive industry was completely liberalized and there was no threshold. Foreign auto companies could completely develop in China in another way. He believes that how to use these five years is the opportunity of Chinese cars is also a challenge.

In Mr. Li's view, China's auto industry today does not have the strength to compete with foreign companies in a fully open market environment, including new energy. "At present, 44 % of the market share of independent brands is basically in the middle and low end, making no money, being unsustainable, and having no core technology; And 56 % of foreign investment is high-end, original, core technology, sustainable. At the same time, the scale of Chinese auto companies is far less effective than that of foreign companies, and he called on domestic car companies to pull through.

For high-tech blockade and restrictions, this is a consistent policy of the United States. The list of new tariffs issued this time is also intended to choke the throat of China's high-tech manufacturing industry, limit the development of domestic new energy vehicles, and attempt to have another "ZTE crisis."

The White House announcement of a $50 billion tax on imports from China is a continuation of the previous 301 survey. In the previous "Recommended Tariff List for Chinese Products", consumer electronics such as mobile phones were not included in the list. Therefore, the basic industry involved in the lithium electric industry chain is the new energy automotive industry.

However, this new tariff list is not as strong as the impact of the new energy automobile industry. According to statistics, China’s new energy vehicles have only complete vehicle export enterprises, such as BYD, Ankai and Jianghuai, and these companies are facing the United States. The export business accounted for less than 3% of all revenues, so he predicted that if the tariffs come true, the manufacturers entering the supply chain of these car manufacturers will not be affected too much. In terms of power batteries, the United States currently imports mainly Japanese and Korean products, and the impact on China's domestic power batteries is basically negligible.

Yaosenyuan believes that the White House's tariff statement will not have much impact on China's lithium industry chain, but more a psychological fear. In the short term, the result of the trade war is that the United States will lose both sides, but if the United States can thus achieve its strategic goal of curbing China's 2025 advanced manufacturing plan, it will greatly help the United States in the long term. So in the long run, a trade war, or "trade war", could be the norm.

Yao Senyuan believes that this White House tariff statement will not have much impact on China's lithium battery industry chain, and more is a psychological fear. In the short run, the result of the trade war is a Sino-US lose, but if the United States can achieve the strategic goal of curbing China's 2025 advanced manufacturing plan, it will greatly help the long-term overall interests of the United States. Therefore, in the long run, the trade war, or the "trade war" future may be the norm.

In today's changing world landscape, as a spokesman for the commerce ministry said in a statement late on the evening of the 29th, "we are surprised, but also expected, by the strategic statement issued by the White House. This is clearly contrary to the consensus reached between China and the United States in Washington not long ago. Regardless of the measures taken by the US, China has the confidence, ability and experience to defend the interests of the Chinese people and the core interests of the country. China urges the US side to act in the spirit of the joint statement. "

The new energy car market is now full of variables, but with the strong support of the state, the self-innovation of the industry, and the mutual support of car companies, we believe that even if the road is long, China's new energy vehicles can still be up and down.

The page contains the contents of the machine translation.