A senator has advised President Joe Biden that preventing China from entering the U.S. electric vehicles market is crucial for the country's economy and security.
Sen. Sherrod Brown (D-OH) issued this message on April 11 letter to Biden, explaining that Chinese automaker BYD produced and sold more electric cars — 3 million last year — globally than any other company, including Tesla, which sold just over 1.8 million in 2023. However, the Chinese company’s electric vehicles are not currently available for purchase in the United States, in part due to a steep 27.5% tariff on Chinese cars imposed by former President Donald Trump, a tariff that Biden has continued.
Even with the high tariffs, the Chinese pricing advantage is so significant that it will not keep them out of the U.S. market for long, Vox reported. They could be retailed for about $10,000.
Brown argues that this safeguard is necessary because China unlawfully subsidizes its electric vehicle industry, as it has done for years in other sectors. Representing a state that ranks third after Michigan and Indiana in terms of automotive manufacturing jobs, Brown advocates for a formal ban on Chinese-made electric vehicles. He asserts that subjecting domestic electric vehicle manufacturers to compete with China’s manufacturing cost advantage would quickly lead to a race to the bottom, eroding workers’ bargaining power for higher wages and benefits.
Summarizing the points in his letter, Brown stated, “Chinese electric vehicles pose a significant threat to the American auto industry. Ohio is well aware of how China unlawfully subsidizes its companies, displacing our workers and undermining entire industries, from steel to solar manufacturing. We cannot allow China to bring its government-supported unfair practices to the American auto industry. The U.S. needs to immediately prohibit Chinese electric vehicles and prevent an influx of Chinese government-subsidized cars that endanger Ohio auto jobs as well as our national and economic security.”
The challenge for Biden is that the Chinese are showing a substantial competitive advantage in a market that his administration has aimed to promote as a crucial part of his proposed Green New Deal to combat climate change. As The Dallas Express has previously reported, Biden had initially aimed to make two-thirds of vehicle sales in the United States electric by 2032. However, the high cost of the cars and low consumer demand have led to a postponement of those plans.
Brown’s letter highlights Trump’s purported appeal to certain auto workers last year, urging them to resist the transition to electric vehicles. The former president stated that if Biden’s “all Electric Cars” plan comes into effect, “CHINA WILL TAKE IT ALL, 100%.” DX reported.
As shown by a member of his own party imploring him to exclude inexpensive electric vehicles from the domestic market in order to preserve American manufacturing jobs, Biden must make a decision between prioritizing his climate agenda and safeguarding well-paying jobs in pivotal swing states like Ohio, which are crucial for winning a second term, as reported by Vox. This has resulted in seemingly conflicting policies, such as offering Americans $7,500 when they purchase an electric vehicle while taxing the most affordable electric vehicles in the world to prevent them from entering the domestic market.
The electric vehicles made in China could be seen as a threat to the security of the country.
Brown's letter suggests that Chinese electric vehicles endanger the nation's security by sending information about U.S. infrastructure and Americans' behaviors to China. His comments mirrored President Biden's concerns expressed in February when he tasked the Commerce Department with investigate the software found in Chinese-manufactured cars.
Biden stated, as reported by The Wall Street Journal, “Chinese connected vehicles could gather sensitive data about our citizens and infrastructure and send it to the People's Republic of China. These vehicles could be accessed or deactivated remotely.”
However, some observers believe that Biden's inconsistent policies make more sense when viewed in the broader context of his overall agenda.
This is the opinion of Brent Bennett, policy director for Life:Powered at the Texas Public Policy Foundation. Bennett, who holds a Ph.D. in engineering with a focus on energy storage, stated DX, “It appears that the strategy is to compel car manufacturers to sell more electric vehicles, which mainly use batteries made in China or contain materials sourced from China, while prohibiting more affordable Chinese electric vehicles. As a result, we are left with the choice of purchasing a more expensive gasoline-powered car due to fuel economy regulations or buying a pricier electric vehicle due to import bans and tariffs.”
Bennett then outlined why this result aligns with the objectives of the political left.
“Coupled with the regulations and subsidies that are driving up energy expenses, the inevitable conclusion is that these policies will force Americans to buy fewer cars, drive less, and generally live less mobile and free lives,” he remarked.
