The news that Chinese electric-car company BYD had overtaken Tesla as the world’s top Electric Vehicles maker came, appropriately enough, just as the Year of the Dragon got underway.
Yet as BYD gobbles up global market share, America should beware the three heads of this dragon—spying on Americans, potentially disabling U.S. vehicles on the road, and undercutting the domestic Electric Vehicles industry.
The Chinese Communist Party controls all major Chinese companies, and America should not join the global rush to give the CCP power over a vital economic sector. Indeed, America should ban the sale of Chinese Electric Vehicles—both those made in China and those made in other countries such as Mexico.
Spying. Americans were concerned in February 2023 about a Chinese spy balloon moving from Alaska to Montana to the East Coast. It was shot down in South Carolina. The balloon, 200 feet tall and weighing over 2,000 pounds, contained solar panels and equipment to collect sensitive information.
Chinese Electric Vehicles could be equipped with even more powerful spying equipment. They could go anywhere, including military bases, power plants and cellphone towers.
Electric Vehicles would be far more effective than spy balloons at collecting important data, and at far lower cost—because Americans would be purchasing these vehicles. For similar security reasons the Federal Communications Commission banned Huawei and ZTE technology in 2022.
Chinese Electric Vehicles would also allow the CCP to have an unprecedented trove of Americans’ personal data. When people buy cars, they provide information on addresses, driver’s licenses, credit cards and insurance. If they get loans, the company can access credit history, including mortgages, other loans and additional credit cards. America should not give this to the CCP.
Disabling Vehicles. Just as General Motors’ Onstar program advertises that it can stop or disable stolen vehicles, America should not give the CCP power to stop or disable Electric Vehicles driven in America. Onstar can remotely activate emergency flashers. It can use GM-trademarked Remote Ignition Block™* to stop engines from starting and Stolen Vehicle Slowdown® to slow the car. If Onstar can do this, Chinese car companies undoubtedly have the technology—as well as potentially disabling braking and navigation systems.
Undercutting U.S. Electric Vehicle Incentives. The 2022 Inflation Reduction Act contained over $1 trillion in clean energy initiatives to fund EV and battery manufacturing plants and consumer tax credits to develop a domestic Electric Vehicles industry. But CCP subsidies for Chinese Electric Vehicles can undercut these programs and American Electric Vehicles production, contrary to congressional intent.
China has lower costs for labor, both due to its low-wage workforce and from the use of child labor and slave labor in Xinjiang; lower costs of energy, because China has fewer regulations on pollution and relies on domestic coal; and lower costs of capital, because the CCP gives low-rate financing to favored companies. China controls 60% of the world’s critical battery minerals, and produces 80% of the world’s batteries.
Due to these advantages, Chinese Electric Vehicles have been expanding globally. Chinese companies include BYD, Nio, Chery, Geely, SAIC and Great Wall. China exported 5 million vehicles around the world in 2023, and is now top in global vehicle exports. At the same time as China is expanding, Jeep has left China, and sales of GM and Ford vehicles in China are half of what they were in 2017.
BYD, which sold 3 million cars last year, is hoping to undercut German automobile manufacturers with its $11,500 Seagull. Its $33,000 Dolphin is one of the cheapest new cars in the U.K. It’s expanding to Scandinavia, Asia and Australia. It’s even marketing $40,000 EVs in South Africa, which suffers from perennial blackouts.
Geely now owns Volvo, and SAIC has taken over the U.K.’s MG. Chery expects to open 50 showrooms in the U.K. in 2024 and sell 15,000 cars, overtaking Jeep, Jaguar and Suzuki.
Michael Dunne wrote last month in Automotive News, “China’s Electric Vehicle and battery production is 10 times greater than that in the U.S…. BYD produced 76,800 EVs in the last week of December while GM built 75,883 in all of 2023.”
While China has an advantage in small EVs, U.S. companies dominate in larger vehicles such as pickup trucks and SUVs. But American companies are being pressured by their regulators, the U.S. Department of Transportation and the Environmental Protection Agency, to focus on electric vehicles rather than the cars their customers want to buy.
Regulations to require 60% of new vehicle sales to be battery-powered electric in 2030 and 66% in 2032 are now at the White House under review before expected release in March.
America can’t have it both ways. Mandating EVs without banning imports from Chinese companies, both those located in China and elsewhere, will give the U.S. auto market to the Chinese, in the same way as Chinese companies are taking over auto markets globally. And allowing Chinese Electric Vehicle imports poses major national security threats, as well as giving the CCP control over the U.S. economy.
Watch out, America, because the Dragon is coming for our cars.
Diana Furchtgott-Roth is Director of the Center for Energy, Climate and Environment and the Herbert and Joyce Morgan Fellow.
Reprinted with Permission from Heritage.org – By Diana Furchtgott-Roth
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
All of this was readily predictable. The whole environmental / climate change movement was about the slow crippling of Western civilization in general through the gradual then escalating means of curtailing the cheap and reliable energy sources that allowed the West to advance society and the standard of living so greatly over the last 150 years. Namely oil, natural gas and coal. As the West is forcibly shifted to the more expensive and less efficient alternative forms of the energy that the left favors, namely wind and solar manufactured mostly in China, both the cost of everything will rise and the standard of living for the average person will decline over time.
Western Europe has already demonstrated this pattern in the last 20 years, as their leaders marched them, and their economies, off the proverbial cliff starting in the early 2000s with more and more reliance on wind and solar power. Which has led to massively higher energy costs, rolling brownouts and blackouts, and an even larger curtailment of their already economies and reductions in standards of living.
The BYD story is merely the latest in a long list of things China is doing with the aid and assistance of a number of western leaders to shift even more of the world’s center of balance, from an economic and political perspective, in China’s favor. Should Biden or any Democrat win the White House in 2024, the U.S. auto industry, and for that matter much of the West’s auto manufacturing industry around the world, will be relegated to a footnote in history within 10 years’ time. We truly do live in interesting times and NOT in a good way. Continued inaction and meek acceptance of much of the West’s population to this intentional diminishment of western society does have real-world consequences whether or not we choose to acknowledge it.
Giving more money, aide, and comfort to Communist China to continue building up their military for them to SPY on you and put your life in Danger with Electric vehicles made in Communist China.
They still haven’t told you the Dangers and how much it will cost you to charge them and how much time you have to waste waiting for it to charge while it only takes a few minutes to fill up your vehicle with gasoline or diesel. Then they still haven’t told you that there are NO mechanics to fix it especially if you are broke down in the middle of nowhere and how much repairs cost or to tow it, or how Cold weather drains the battery not to mention the Dangers of being by Salt Water, or when it explodes on impact among the many problems you will have with Communist China electric vehicles.
So go ahead and support Communist China by buying their junk putting Americans out of a job, your Privacy and Life in Danger, and watch your bank account dry up as it is doing under Bidenflation.
BAN ALL Products including TikTok, Medicines and Medical Supplies from Communist China is the AMERICAN WAY.
We want ONLY U.S. MANUFACTURERS to build our products and ONLY U.S. FARMERS to produce and grow OUR FOOD.
Shorten the headline America should ban electric vehicles
Until we start manufacturing our own electronics, pharmaceuticals, steel and other things we are in no position to tell China anything. Even then China owns so much of our debt we still would not be in any position to limit what they are doing. Overspending and under producing is an epidemic in this country from the government to individuals and families. Either we make big changes in how we live or we will be living with more dictators like Biden, and they won’t lie as much about it. Getting rid of democrats is something we could, and should do immediately.
America needs to stop everything from CHINA! Our protection
Very well written article Diana, this information is of great importance to anyone who cares about the economy, as well as anyone who cares about principles. And it is all rather easily understood with just a preliminary knowledge of Chinese history and international law connections. Let’s all unplug the electric vehicle idea and think about the sensible way of future transportation needs – that would involve automotive engineering that respects the liberty of the United States of America. A combination of what is tried and true and regard for new ideas that are in keeping with freedom of thought .
Lets not kid ourselves. Biden is not going to risk his major source of income by hindering China.
One day — very soon, I am afraid — our lives as we know them are going to change radically because of crises such as this. And we will ALL be sorry we didn’t protest louder and stronger . . .
NOTHING will change as long as “We The People” Keep voting in politicians with NO INTEGRITY who will sell their SOULS to the DEVIL for $$$$$$$. That being said I’m not so sure the elected officials in the DC Sewer ER Swamp are even running the country!!!
All trade with China should be STOPPED. China has been our enemy for all of my life and cannot be trusted. No product made in China or by a China owned corporation should reach the shores of the USA. Considering the fragile state of the USA today, no foreign person or entity should be allowed to own real estate in the USA or to purchase shares in any USA concern.
Where were all you people when Clinton relaxed trade with China and Bush granted them “permanent normal trading relations” (PNTR)? Reagan won the Cold War by squeezing the USSR financially while we arm China by buying their goods. Enjoy your Apple watches and Nikes…. and when the first Chinese missile hits, enjoy that too: WE PAID FOR IT! (Oh, and I did complain back then so I TOLD YOU SO!)
We can all do our part, I personally take a long time shopping if made in china I put it back! I ask if the store owner,manager has same product made in the USA and let them know I will not be purchasing their china product. Some are surprised and others don’t care but the act does cause them to think. There are too many none thinkers in this world. If you talk to a young person you will find they are easily impressed by the experience and knowledge that we hold of how it was and should be in our country. Things have gone horribly wrong since the 80’s. That’s when I recall the first issue that made me say what is going on here, and it had to do with the care of our Veterans.
We need to stop getting so much from China we are so dependent on China I blame our government leaders for what is going on they just cannot do nothing on there own. I find it hard to believe they need so much from China we are in so much debt with them right now what is wrong with the White House and others in Washington just because the money does not come out of your pocket stop with all the trade with China pay off the DEBT to them do more here in this country quit depending on all these other countries.
You can’t make this up!!! We are watching the destruction of America because of the lies of “climate change.” It is all about power and control of the people by elitists who hate anyone that disagrees with them.
Have NO National Charging System
Range
Maint costs
Insurance
Lack service centers
battery fires
Replace battery pack
BUT I will RENT 1
To hurt China ,stay out of wal-mart. Kyle L.
There was and still is great interest in vehicles that are powered by Hydrogen Gas.
The push for All Electric Vehicles and restrictions on internal combustion engines is a joke.
Currently many states have “rolling brownouts” during high electric demand, and to replace current gas and diesel engines would be a regrettable decision.
If the world leaders were as smart as they’d have us believe, I’d be going to work in George Jetsons vehicle.
Why stop with Chinese cars? We should be ashamed that we have been owned by Communist China on every front. America can once again become a manufacturing powerhouse but the American people have to want it.
This is all propoganda. Rhetorically, if the US companies want to compete, why weren’t they investing in R&D on these technologies decades ago like China? Capitalism dictates that companies which can’t compete should not survive, simple as that. Doesn’t matter what countries we are talking about. We have all the resources we need in the US to make these technologies.
Look at every consumer electronic in your home – chances are it was made in China because the US people don’t want to pay 5-10x more for their computers, TVs, stereo systems, appliances, lawn equipment and their annual cell phone purchases. If you want to slow down China, stop purchasing all electronics or anything made there – very few Americans are willing to do that – including, I’m guessing, the people who wrote this article. Why would/should cars be any different?