Image for post
Image for post
The Guangzhou Automobile Group’s Trumpchi “Rear Part”. This is a real thing. This is not a political statement.

Know Anyone Who Owns A Chinese Car?

We Don’t.

Trump keeps bringing this up:

Image for post
Image for post

But then where are all those Chinese cars that should be flooding the U.S. market? Where are all those Geelys and Trumpchis? (Yes, that’s a model made by the Guangzhou Automobile Group.)

There are a few answers to that question:

  1. There are a some, not many. The most obvious is Volvo, which Ford sold to Chinese automaker Geely in 2010.

So Trump might be right in a way to focus on cars when discussing tariffs against China, even though his timing in raising the alarm may be a bit premature.

Image for post
Image for post
Chinese automaker Geely intends to export these to the U.S.

There’s another issue that ties into this, the announcement by Trump’s favorite bad boy, EPA Chief Scott Pruitt this week that the Trump Administration intends to roll back emissions and fuel efficiency standards on cars, and at the same time fight federal law that allows California to set its own more stringent standards that other states can then follow.

Thing is, that would imply a high level of protection for U.S. automakers indefinitely. Because while they may no longer be held to higher standards, unless laws and targets start unraveling all over the place, manufacturers in Europe, and Japan, and yes, China will invest and will produce vehicles that meet more ambitious goals. So either U.S. automakers will either have to keep up anyway to compete globally, or will return to a period of inefficiency compared to the rest of the world, meaning in order for them to succeed, the government will have to keep keeping the rest of the world out. Socialism, anyone?

Written by

Peabody award winning journalist. Streaming media pioneer. Played @ CBGB back in the day. Editor-In-Chief "The Chaos Report" www.thechaosreport.com

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store