White House to detail plan to safeguard US auto sector, avoid second 'China shock'

[Alter_Ego]

American auto industry, except Tesla, lives in a artificial and protected market. Thats why americans cars fell behind rest of the world in design and quality.

The hope is that Tesla eventually will manage to usher a bew automotive era, but unlike Henry Ford, this time its facing fierce competition from Chinese EVs which are the State of the Art.

 

[Zsari]

Most developing countries have tariffs as their auto industries are not as developed as advance countries like United States, Europe and Japan.

Reads to me like it's going to be an outright ban rather than tariff.

 

[Zsari]

China had 80% to 100% car tariffs for decades (starting in the 1980's I believe) forcing foreign automakers to do joint ventures. It wasn't until 2006 that they started reducing it to 25%.

So you think it was a failure and Chinese car companies became uncompetitive due to it????

BTW China had car companies since at least the 1950's.

FAW Group - Wikipedia

en.wikipedia.org

Doesn't sound like a tariff. And of course China has a high auto tariff in the 80's as it was an underdeveloped country with an auto industry that is in its infancy. If you think the US auto industry is in the same situation today, then sure, protectionism make sense. But with the actual situation in the US, I don't think such protectionism would actually give the big auto incentive to become more competitive, but rather than the other way around.

The U.S. Commerce Department on Monday proposed prohibiting key Chinese software and hardware in connected vehicles on American roads due to national security concerns, a move that would effectively bar nearly all Chinese cars from entering the U.S. market.

 

[Hamartia Antidote]

Doesn't sound like a tariff.

Of course it was!
Don't you remember the days of Chinese tourists taking shopping trips to Europe to get around tariffs on imported goods???

June 02, 2014​

Chinese Tourists Still See Shopping As Top Travel Motivator | Jing Daily

Whether they're interested in showing off status or seeking cultural enrichment, the UNWTO finds that Chinese tourists love to shop for luxury as their tastes diversify.

jingdaily.com

The report also finds that Chinese travelers’ number one travel spending activity remains shopping, with an estimate that 30 percent of total Chinese trip expenditure is dedicated to retail purchases. Middle-class travelers are very price-conscious and spend big on shopping in order to take advantage of tariff-free prices of European goods.

And of course China has a high auto tariff in the 80's as it was an underdeveloped country with an auto industry that is in its infancy. If you think the US auto industry is in the same situation today, then sure, protectionism make sense.

Yes, most legacy automakers have almost no experience building EVs. That's why Tesla has a dominating ~50% of the US EV marketshare. That's even higher than what BYD has in China.

But with the actual situation in the US, I don't think such protectionism would actually give the big auto incentive to become more competitive, but rather than the other way around.

Well it took China decades to get its act together under heavy tariff protection and we can just do the same with legacy automakers.