BYD, the Chinese electric vehicle giant backed by Warren Buffett’s Berkshire Hathaway, has global ambitions – expanding its presence in countries such as Japan, Thailand and Mexico will be selling their ultra-affordable electric vehicles around the world. But one market is glaringly missing: the US.
The U.S. electric vehicle market is at a “very confusing stage” due to slowing consumer adoption, BYD Americas CEO Stella Lee said. said on Monday. “EV penetration in the U.S. has actually dropped,” she explained.
Speaking at the Milken Institute Global Conference in session moderated Fortune Diane Brady, Lee confirmed that the Chinese electric vehicle giant “has no plans to sell in the US,” following similar comments made in February.
Washington is trying to remove China from the electric vehicle supply chain with recent legislation banning tax breaks for vehicles that use Chinese components such as batteries. On Monday, Lee said geopolitics has a “big impact” on BYD. “The U.S. is becoming a very protected market,” she said.
In March, President Joe Biden warned that Chinese cars could pose a national security threat because car software could collect environmental data and transmit it back to Beijing.
Meanwhile, former President Donald Trump has threatened to impose tariffs of up to 100% on Chinese car imports if he is elected in November. Earlier, the Trump administration raised the import duty on Chinese cars to 27.5%.
On Monday Lee expressed hope that “everything will go back to normal” after the US elections in November, when people will become “more serious about what the future decision is here.”
“Not fair”
It’s not just Chinese automakers that are getting attention.
Last year, members of Congress criticized a planned joint venture between Ford and Chinese battery giant CATL in Michigan, claiming it could result in a flow of US government money to the Chinese company.
Congress is also considering legislation that would ban Chinese biotech companies from working with federally funded health care providers.
Officials are also reportedly concerned about the use of Chinese cranes at U.S. ports, fearing that such equipment could send data back to China. In February, the Biden administration pledged to spend $20 billion on port infrastructure, including domestic production of cranes.
On Monday Lee complained that it is “unfair” that Chinese companies are automatically considered to be working hand in hand with the Chinese government.
The BYD executive pointed to the ongoing debate over TikTok, which is owned by Chinese tech company ByteDance. In April, the Biden administration signed a law that obliges ByteDance to sell TikTok within nine months under threat of a ban. TikTok this week sued the US to block the ban, mounting a First Amendment fight.
Lee asked why TikTok requires such close attention. “Even President Biden uses TikTok, so why ban them? [it]?
BYD Global Expansion
BYD, which sells both battery electric vehicles and plug-in hybrids, undoubtedly largest seller of “new energy vehicles” in China. The company is currently targeting overseas markets and is pursuing an aggressive expansion campaign. BYD is building production facilities in Hungary, Thailand, IndonesiaAnd Brazil.
Cheap Chinese electric cars from companies like BYD are now causing a backlash. Last October, the European Union launched an investigation into combating subsidies for Chinese-made electric vehicles, including those produced by BYD. The investigation could lead to tariffs on imports of Chinese cars.
For its part, BYD says its low prices are due to “management efficiency” and investments in technology.
On Monday Lee proposed that the US should leverage China’s “leading” EV supply chain. “They will bring the best technology to the country,” she continued.
American officials understand that they cannot completely exclude China from the electric vehicle supply chain. Last week, the United States agreed to allow automakers to use Chinese graphite, a critical material for batteries. still claim for tax benefits.