China’s Africa Experiment With EVs Sparking Concern Among Local Automakers

Contact Your Elected Officials

Chinese motor vehicle companies are setting up shop across Africa and dumping cheap EVs as domestic market shrinks and tariffs bite.

News Analysis

JOHANNESBURG—China is planning to maintain its dominance in the international electric vehicle (EV) sector by investing heavily in Africa, according to industry analysts.

Chinese EV manufacturers, bolstered by substantial government subsidies, have built—or are in the process of building—several factories in African countries.

The aim, car industry experts say, is to secure new markets in the Global South, where economic growth is happening faster than anywhere else and which includes rising geopolitical powers such as India, Brazil, Saudi Arabia, South Africa, Nigeria, and Kenya.

China also wants to be close to the source of the critical minerals needed to produce EV batteries, they said.

Analysts also said that China’s major state-owned carmakers plan to use Africa’s low labor costs to offset expected losses from higher tariffs on Chinese-made EVs exported to North America and Europe.

The United States has a 25 percent tariff on imported vehicles but has imposed a 100 percent tax on Chinese electric vehicles to protect American manufacturers.

Europe has also increased tariffs on Chinese electric vehicles, to as high as 45 percent in some cases.

Layton Beard, an independent car industry analyst, said Chinese automakers are increasingly active across Africa.

These include Beijing-backed, state-owned SAIC (Shanghai Automotive Industry Corporation) and Dongfeng, as well as BYD (Build Your Dreams), Geely, Chery, and GWM (Great Wall Motors), all of which benefit from China’s subsidies and policies.

In a 2023 address to the European Parliament, European Commission President Ursula von der Leyen accused China of flooding the world market with cheap electric cars, saying their prices are “kept artificially low by huge state subsidies.”

Some of China’s largest manufacturers continue to dump EVs they’re unable to sell domestically in developing countries, frustrating local automakers who can’t match their low prices.

South African independent economist Dawie Roodt said this is happening “at the same time as China pledges to put poorer countries at the center of the global energy revolution.”

EV sales are expected to soar in the future, as much of the world moves away from fossil fuels.

China has pledged to move toward a coal-free future but continues to build power stations that burn coal, the fossil fuel that emits the most carbon.

Some of the biggest EV markets will be in the Global South, including rising powers in Africa, where economic growth is outstripping the rest of the world as the continent industrializes and expands manufacturing bases.

By Darren Taylor

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

ChatGPT Goes Biblical about End Times!

There are some truly outstanding internet content creators, or...

Epstein’s Niece Exposes the Illuminati!

There is a shocking interview by the podcaster Shaun Attwood, an English former ecstasy trafficker turned YouTube podcaster, speaker, activist, and author.

When Gynocrats Attack: Innocent Locker Room Talk Interrupted By Rabid Karen

The question posed: “Who do you think has a...

Obama’s Treason is a Betrayal of American Democracy and Demands Real Accountability

Few scandals have cast a longer shadow than the 2016 Russia investigation—the manufactured crisis by President Obama designed to cripple Trump's presidency.

Chronic Grievous Insufficiency

A president's physical vigor, stamina, and mental acuity are essential to his ability to fulfill the duties of office and those qualities should matter with no regard to party affiliation.

COVID-19 Pandemic Accelerated Brain Aging Even in People Who Didn’t Get Virus: Study

Brain aging appears to have accelerated by months during COVID-19 pandemic, even in people who did not get sick from the virus, according to study.

US Witnessing ‘CapEx Comeback’ as Investment Wave Hits Economy: Treasury

The U.S. economy is experiencing a “CapEx Comeback” this year as private-sector investment soars, the Treasury Department said.

New Study: COVID-19 Vaccinations Prevented 2.5 Million Deaths Globally, Mostly Among the Elderly

New global modeling study estimates that COVID-19 vaccinations prevented about 2.5 million deaths worldwide between December 2020 and late 2024.

What to Know About New ‘Visa Integrity Fee’

New refundable “Visa Integrity Fee” for foreign nationals applying for nonimmigrant visas to enter the United States.

Ex-DOJ Officials File Lawsuit Against Bondi Over Terminations

Former DOJ officials filed lawsuit against AG Bondi and the fed. govt, saying they were terminated for work on cases related to Jan. 6 Capitol breach.

Odds of U.S.-EU Trade Deal Are 50–50 Ahead of Tariff Deadline: Trump

President Donald Trump said there’s a 50–50 chance that the United States will finalize a trade deal with the European Union before an Aug. 1 deadline.

Trump Pulls Habba’s Nomination for New Jersey’s Top Prosecutor, Making Her Acting US Attorney

President Trump withdrew his nomination of Alina Habba to serve as NJ’s top federal prosecutor, making her Acting US Attorney.

Trump Says He Wants Musk’s Companies to ‘Thrive Like Never Before’

On Thursday, President Trump said, “I want Elon, and all businesses within our Country, to THRIVE, in fact, THRIVE like never before!”
spot_img

Related Articles