Since January this year, when the two countries reached an economic and trade agreement, the United States has been closely monitoring developments related to Chinese electric vehicles.
According to Bloombergs report on May 29th, there are reports that electric vehicles manufactured in China are beginning to arrive in Canada.
An insider told Bloomberg that recently, hundreds of cars produced by Teslas factory in Shanghai have begun to be delivered to Canada.
Additionally, since last Sunday, a car transport vessel named Glovis Treasure has been moored outside Vancouver Harbour. The vessel carries a small number of luxury cars manufactured in China, the Lotus brand. Shipping records indicate that the vessel set sail from Shanghai in early May.
Lotus car enters the transport ship – Video screenshot
Reports indicate that these vehicles will be Canadas first batch of electric vehicles manufactured in China, imported in accordance with the Sino-Canadian economic consensus.
In January, Canadian Prime Minister Justin Trudeau visited China. During his visit, he signed the China-Canada Economic and Trade Cooperation Roadmap. Both sides made some specific arrangements to properly address economic and trade issues in areas such as electric vehicles, steel and aluminum products, rapeseed, agricultural products, and aquatic products. They also reached positive agreements regarding increasing direct flights, improving the business environment, and agricultural product inspection and quarantine measures.
The Chinese side has lifted the additional 100% tariffs imposed on imported Chinese electric vehicles. A quota of 49,000 units per year will be granted to Chinese electric vehicles. These vehicles will enjoy a most-favored-nation tariff rate of 6.1%. There will be no longer any additional taxes. The number of quotas will increase gradually over the years.
Bloomberg admits that this agreement has been closely monitored and questioned by American automakers such as General Motors. Prior to this, cars manufactured in the United States dominated the Canadian market.
Reports indicate that until recently, Canada followed the United States in imposing barriers on Chinese electric vehicles, which led to countermeasures from China. However, last year, U.S. President Trump imposed tariffs and threats of sovereignty against Canada, resulting in a decline in production at Canadian factories and increased unemployment. Due to being squeezed between the Chinese and U.S. markets, the Kanada government re-evaluated its policies in the automotive industry.
Data shows that the quota of 49,000 vehicles accounts for less than 3% of the total number of new cars in Canadas market.
However, this quota is expected to increase year by year. At the same time, Chinas electric vehicle industry is growing rapidly, and it is reshaping the global automotive market. The Canadian government believes that these new trade arrangements will allow some Chinese automakers to enter the Canadian market.
BYD Corporation previously stated that it plans to establish approximately 20 sales outlets with its partners in Canada.
Canadian officials have been discussing whether to allocate quotas for Chinese electric vehicles. This includes deciding whether to limit the proportion of quotas that each company can use, in order to prevent any single manufacturer from monopolizing those limited quotas. Starting from 2027, more and more quotas will be allocated to vehicles with a cost of $35,000 or less. By 2030, this proportion will reach 50%.
On the 28th local time, during a speech in New York, Carney said that in the short term, most of the Chinese electric vehicles imported under the quota will be from Tesla. He added that over time, more and cheaper Chinese cars will enter Canada in a controlled manner.
According to reports, on May 7th, Lotus Automobile (China), a subsidiary of Geely Automobile, posted a video on social media. The video showed 18 Eletre cars being transported onto the ship Glovis Treasure.
The video read: Chinas first automotive brand has broken through the barriers of North American certification, setting a new record for Chinese electric vehicle exports. From the production of Lianfo Automotives global smart factory to its successful expansion into Canada, Chinas innovative manufacturing capabilities are being showcased worldwide.
Export volume accounts for approximately one-third of the total sales of Chinese cars, according to Reuters statistics.
The Chinese text is not relevant and should be ignored.
But for American drivers, it seems like they are willing to buy cars made in China.
As smaller, more economical vehicles become increasingly rare, American consumers are witnessing the continuous rise in car prices. Last month, American journalists and social media influencers attended the Beijing Auto Show, aiming to cater to the growing interest of their audience. According to a survey conducted by Cox Automotive, nearly 40% of American consumers said they very likely or definitely consider purchasing vehicles from Chinese brands.
In January this year, U.S. President Trump publicly stated in Detroit, We welcome Chinese automakers to invest and build factories in the United States.
Reuters believes that the United States has removed the obstacles to Chinese cars entering its market, its just a matter of time and method.
According to an article published by Katrina Hamlin, a columnist for this publication on May 12th, the prices of Chinese cars are lower. Moreover, many Chinese brands models are generally more fashionable compared to those produced by Western automakers like Ford and General Motors. Due to concerns about protectionism and so-called technical safety, the U.S. government has imposed high tariffs on Chinese cars. However, recently, there have been signs of a shift in the U.S.s decision to ban the sale of Chinese cars altogether.
