May 14, 2024 Press Release

Statement on Biden Administration Chinese EV Announcement

WASHINGTON, DCJohn Bozzella, president and CEO, Alliance for Automotive Innovation said:

“China and the auto industry: it’s complicated.

“China is a giant auto market – nearly twice the size of the U.S. China is also the leading electric vehicle maker and consumer in the world.

“There’s inbound and outbound trade between the U.S. and China too. U.S.-based automakers are manufacturing American-built vehicles and exporting them to China. Automotive components are exported from China into the U.S. This trade supports American auto employment and auto affordability.

“U.S. automakers can outcompete and out innovate anyone on the EV transition. No doubt about that. The issue at this moment isn’t the will… the issue is time.

“What do I mean? China got a 15-year head start on electrification and cornered the market on major parts of the global EV supply chain – including mining and processing of critical minerals like lithium, cobalt and graphite used in EV batteries.

“That’s changing as we localize EV supply chains and partner with allies to source and process raw materials. The change is picking up speed. It just won’t… and can’t… happen overnight. It takes time for complex global supply chains to form. But it will happen.

“Back to today’s announcement. What’s happening right now with China and EVs?

“They’ve got a major EV overcapacity problem. They’re building too many EVs – too many heavily subsidized EVsfor the domestic market and have no choice but to look abroad to offload those vehicles at budget prices. It’s happening already in Europe.

“Chinese overcapacity, combined with a healthy Chinese government subsidy, is a recipe for dumping. That concerns automakers and it should concern the administration and Congress.

“Automakers embrace fair competition. We’re not shrinking from it, but China’s EV overcapacity and subsidy issue is real. The competitiveness of the auto industry in the U.S. will be harmed if heavily subsidized Chinese EVs can be sold at below-market prices to U.S. consumers.

“It’s appropriate for the White House to be looking at tools to prevent the U.S. from becoming a dumping ground for subsidized Chinese EVs. We can’t let China’s EV overcapacity problem turn into a U.S. auto industry problem.”

June 12, 2023
About Alliance for Automotive Innovation
From the manufacturers producing most vehicles sold in the U.S. to autonomous vehicle innovators to equipment suppliers, battery producers and semiconductor makers – Alliance for Automotive Innovation represents the full auto industry, a sector supporting 10 million American jobs and five percent of the economy. Active in Washington, D.C. and all 50 states, the association is committed to a cleaner, safer and smarter personal transportation future.