With the escalation of the trade war between Washington and Beijing, it is estimated that the policies of US President Donald Trump – related to the imposition of customs duties on cars – may have opposite results, giving China an opportunity to enhance its position in the global auto market, according to a report published by Bloomberg.
At a time when the largest car companies were gathering at the Shanghai Motor Show last week, talking about customs duties was strongly present, despite the festive atmosphere on the roof of the historic Pace Hotel, where the Electric Car Company “Zaker” organized a ceremony attended by senior investors and journalists.
Investment disturbances and new supply networks
According to Bloomberg, Trump’s protective policies have negatively affected the appetite of international companies to invest in building new factories inside the United States. William Lee, CEO of “New”, explained that major investments require stability in policies “and this is what we miss today.
While the entry of Chinese cars to the American market is restricted, companies such as “BYD” and “Catal” are to enhance their presence in other markets such as Southeast Asia, the Middle East and Europe, despite the fees of 45.3% on Chinese electric cars.
Bloomberg noted that some European officials are studying the option to appoint a minimum price instead of imposing high fees.
For his part, Bill Rousseau, CEO of Automobelli – Bloomberg TV channel – said it does not seem to have the intention to accelerate the globalization of Chinese supply chains, “but this is exactly what is happening now.”
Technological developments amid organizational challenges
Besides customs duties, the Shanghai Show showed a huge leap in the standard technologies of Chinese electric cars, the most prominent of which is the artificial intelligence -enhanced sound control systems through the “Debceic” platform. Local reports indicated that more than 20 car companies are planning to integrate this model into their systems, including “FAO-Volkswagen” and “Seik-General Motors”.
Huawei also established its position as a major provider of smart driving software, and announced that its technology contributed to avoiding two million possible traffic accidents.
On the other hand, a fatal accident of an “Xiaom SU7” electric car – which was operating with the automatic driving system when it occurred – imposed a tougher regulatory regulations on driving aid in China.
The luxurious “BYD”
The BYD wing witnessed a heavy turnout, with its display new models targeting high -end markets. The chief designer, Wolfgang Egger, revealed a model of its luxury brand “Denza” that resembles the “Porsche 911” cars.
The first look at the “Yanguang U8L” is a 5.4 -meter electric car, which is scheduled to be launched in the second half of this year.
According to Bloomberg, the price of “Yanguang U8 L.” is expected to exceed a million yuan barrier (about 150 thousand dollars) with the BYD plan to expand its offers to include luxury cars whose prices range between 600,000 and two million yuan.
