BYD, the Chinese electric giant backed by Warren Buffett’s Berkshire Hathaway, has global ambitions and is expanding its presence in countries like… Japan, ThailandAnd Mexico to sell its highly affordable electric vehicles worldwide. But one market is noticeably missing: the USA
The U.S. electric vehicle market is in a “very confusing period” due to slower consumer adoption, said Stella Li, CEO of BYD Americas said Monday. “Electric vehicle penetration in the U.S. has actually declined,” she explained.
Presentation at the Milken Institute Global Conference in a meeting moderated by Fortune’s Diane Brady, Li reiterated that the Chinese EV giant has “no plans to sell in the US,” as follows similar comments made in February.
Washington is trying to get China out of the electric vehicle supply chain. Recent legislation denies tax credits for vehicles that use Chinese components such as batteries. On Monday, Li said geopolitics had a “big impact” on BYD. “The U.S. is becoming a very protective market,” she said.
In March, President Joe Biden warned that Chinese cars could do this currently a national security risk because the software in the car could collect data about the environment and transmit it back to Beijing.
Meanwhile, former President Donald Trump has threatened to punch one up to 100% tariff on Chinese vehicle imports if he is elected in November. The Trump administration previously increased the tariff on Chinese car imports to 27.5%.
On Monday, Li expressed hope that after the US elections in November “everything will be back to normal” when people “become more solid and think about what the future solution is here”.
“Not fair”
It’s not just Chinese car manufacturers that are attracting attention.
Last year members of Congress criticized a proposed joint venture between Ford and Chinese battery giant CATL in Michigan, claiming it could result in US government money flowing to a Chinese company.
Congress is too think about the legislation This would prevent Chinese biotech companies from working with state-funded medical providers.
Officials are too Reportedly concerned about the use of Chinese cranes in US ports and feared that such machines could send data back to China. In February, the Biden administration pledged $20 billion in spending on port infrastructure, including domestic crane production.
On Monday, Li complained that it was “not fair” that Chinese companies were automatically seen as working hand in hand with the Chinese government.
The BYD manager referred to the current debate about TikTok, which is owned by the Chinese technology company ByteDance. In April, the Biden administration signed a law that orders ByteDance to sell TikTok within nine months under threat of a ban. Tick tock sued the US this week to block a bansparking a fight over the First Amendment.
Li asked why TikTok required such scrutiny. “Even President Biden uses TikTok, so why do they have to ban it? [it]?”
BYD’s global expansion
BYD, which sells both battery-electric vehicles and plug-in hybrids, is by far the largest seller of “new energy vehicles” in China. The company is now targeting foreign markets as part of an aggressive expansion campaign. BYD is building production facilities in Hungary, Thailand, IndonesiaAnd Brazil.
Cheap Chinese electric vehicles from companies like BYD are now causing a backlash. Last October, the European Union launched an anti-subsidy investigation into electric vehicles made in China, including this one Manufactured by BYD. The probe could lead to that Rates about Chinese car imports.
BYD, for its part, argues that its low prices are due to “Management efficiency” and investments in technology.
On Monday, Li recommended that the US should take over China’s “leading” electric vehicle supply chain. “They will bring the best technology to the country,” she continued.
U.S. officials are learning they can’t completely cut China out of the electric vehicle supply chain. Last week, the US agreed to allow automakers to use Chinese graphite, a critical battery material still qualify for tax credits.