Latest news with #China-origin
Time of India
12 hours ago
- Business
- Time of India
US ocean container imports tumble in May as China tariffs take hold, ET Infra
Advt US seaborne imports of goods from China dropped 28.5 per cent year-over-year in May, the sharpest decline since the pandemic, as President Donald Trump's 145 per cent tariffs took hold, supply chain technology provider Descartes said on is the top US supplier of goods that enter through seaports, including the nation's busiest in Los Angeles/Long Beach. Domestic businesses ranging from retailer Walmart to automaker Ford depend on those goods to US seaborne imports in May tumbled 7.2 per cent from the year earlier to 2.18 million 20-foot equivalent units - snapping a streak of near-record increases fueled by companies frontloading goods to avoid higher duties."The effects of US policy shifts with China are now clearly visible in monthly trade flows," Descartes said in a Coast ports are more dependent on China trade and bore the brunt of the declines. From April to May, the nation's busiest seaports in Long Beach and Los Angeles experienced steep drops in goods from China, 31.6per cent and 29.9 per cent, respectively, Descartes imports from China included furniture, bedding, plastic goods, machinery, toys and sporting United States and China agreed to a 90-day pause on punitive tit-for-tat tariffs last month. US and Chinese officials met in London on Monday to defuse the high-stakes trade dispute between the world's largest executives and shipping consultants expect volume from China to rebound during the tariff truce, albeit at a more moderate level. That's because the US lowered the tariff for many goods from China to 30 per cent during the pause."China-origin imports may continue to soften in the months ahead as importers reassess sourcing strategies amid rising landed costs," Descartes said.
New Straits Times
19 hours ago
- Business
- New Straits Times
US ocean container imports tumble in May as China tariffs take hold
LOS ANGELES: US seaborne imports of goods from China dropped 28.50 per cent year-on-year in May, the sharpest decline since the pandemic, as President Donald Trump's 145 per cent tariffs took hold, supply chain technology provider Descartes said on Monday. China is the top US supplier of goods that enter through seaports, including the nation's busiest in Los Angeles/Long Beach. Domestic businesses ranging from retailer Walmart to automaker Ford depend on those goods to operate. Overall US seaborne imports in May tumbled 7.20 per cent from the year earlier to 2.18 million 20-foot equivalent units — snapping a streak of near-record increases fuelled by companies frontloading goods to avoid higher duties. "The effects of US policy shifts with China are now clearly visible in monthly trade flows," Descartes said in a statement. West Coast ports are more dependent on China trade and bore the brunt of the declines. From April to May, the nation's busiest seaports in Long Beach and Los Angeles experienced steep drops in goods from China, 31.60 per cent and 29.90 per cent, respectively, Descartes said. Top imports from China included furniture, bedding, plastic goods, machinery, toys and sporting goods. The United States and China agreed to a 90-day pause on punitive tit-for-tat tariffs last month. US and Chinese officials met in London on Monday to defuse the high-stakes trade dispute between the world's largest economies. Port executives and shipping consultants expect volume from China to rebound during the tariff truce, albeit at a more moderate level. That's because the US lowered the tariff for many goods from China to 30 per cent during the pause. "China-origin imports may continue to soften in the months ahead as importers reassess sourcing strategies amid rising landed costs," Descartes said.
Business Times
7 days ago
- Business
- Business Times
Asean's export rush wanes as tariff clock ticks down
[SINGAPORE/KUALA LUMPUR/HANOI/JAKARTA] South-east Asia's export boom may be running on borrowed time as traders rush to front-load goods ahead of the end of US President Donald Trump's 90-day tariff pause on Jul 9, masking signs of fading momentum. While April's export data climbed year on year across much of the region, a closer look reveals a month-on-month slowdown that is already hitting Thailand, Vietnam and the Philippines, with the rest of South-east Asia likely to follow by the second half of the year. April trade figures suggest not just front-loading, but also a possible rerouting of US-destined China-origin goods through Asean economies, said Nomura analysts Rob Subbaraman and Toh Si Ying. Such front-loading means Asian export growth in the second quarter of the year could be stronger than projected, noted the duo in a May 28 report. But they warned that this may just be 'a brief respite before an Asian export slump in H2, driven by the inevitable payback from front-loading and an overall slowdown in global trade activity caused by the highest US tariff rates in over 80 years and historically high business uncertainty'. The major exporters in trade-reliant South-east Asia – Indonesia, Thailand, Malaysia, Vietnam and Singapore – face a looming slowdown. On the other hand, the Philippines – a net importer – saw front-loading taper off early. It could ultimately benefit from trade diversion and a potential US deal, as tariffs position its goods to become more competitive. The Business Times breaks down how the shifting trade tide is unfolding across the region. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Singapore: surge now, strain later Singapore's non-oil domestic exports surged 12.4 per cent in April – the fastest pace since July 2024 – driven by gains in both electronics and non-electronics, with the former buoyed by current tariff exemptions. The surprise jump was largely driven by front-loading, as exporters raced to capitalise on the tariff pause and get ahead of looming sector-specific duties on pharmaceuticals and semiconductors. The current boost is 'really no consolation', as advanced sales mean that exports will slow when markets have stocked up, said Deputy Prime Minister Gan Kim Yong recently as he gave an update on the work of the Singapore Economic Resilience Taskforce. Gan, who leads Singapore's tariff talks with the US, said Washington is open to discussion on 'some form of concession' in the impending sectoral tariffs, though it will not budge on the baseline 10 per cent duty. Economists warned of medium to long-term risks amid uncertainty over Trump's next move, though sentiment has improved with the unexpectedly swift easing of US-China trade tensions, said UOB's Jester Koh. But OCBC chief economist Selena Ling warned that whether the two players can reach a permanent trade deal remains to be seen. DBS senior economist Chua Han Teng flagged that global trade frictions remain elevated compared to pre-Trump 2.0 which could be a drag on Singapore's 2025 exports, though likely less severe than earlier feared. — ELYSIA TAN Malaysia: trade momentum meets tariff jitters Malaysia's exports rose 16.4 per cent year on year to RM133.6 billion (S$40.5 billion) in April, as exporters rushed to beat a now-delayed US tariff hike. The jump, from RM114.7 billion a year earlier, was led by a 9.1 per cent rise in domestic exports and a 46 per cent surge in re-exports, driven by strong global demand for electrical and electronic products. Electrical and electronic exports, led by semiconductors and data processing equipment, jumped 35.4 per cent year on year, marking five straight months of double-digit growth. Malaysia's total trade rose 7.2 per cent in the first four months of 2025, with MIDF Research expecting export growth to hold over the next few months as firms take advantage of the temporary tariff reprieve. Analysts remain cautious, with MIDF forecasting a slowdown in export growth to 2 per cent and imports to rise 4.5 per cent, as trade uncertainty and tariff risks persist. Bank Negara expects front-loaded exports to normalise soon. UOB economists Julia Goh and Loke Siew Ting flagged ongoing uncertainty as US trade talks continue, noting firms may scale back production on weaker demand expectations. Pending clearer outcomes, UOB maintains its 2025 export growth for Malaysia forecast at 3.8 per cent. — TAN AI LENG Thailand: export fever cooling Thailand may have notched its tenth straight month of year-on-year export growth in April, but the pre-tariff shipping rush is losing steam. Exports rose 10.2 per cent from the prior year – a clear pullback from March's 17.8 per cent surge. Thailand posted US$25.6 billion in exports in April, amounting to a US$3.3 billion trade deficit, revealed data released by the kingdom on May 26. Bank of America's emerging Asia economist Pipat Luengnaruemitchai said April's cooling confirms the house's view that the strong first-quarter performance was temporary, driven by front-loaded shipments ahead of anticipated tariffs. In a May 26 report on Thailand's trade balance, he said: 'Combined with limited domestic production gains and increasing external pressure, Thailand's export and trade balance outlook remains weak in the coming quarters.' He added that more Chinese products may enter the kingdom as Beijing sources for alternative markets. Industrial and agro-industrial products continue to be key growth drivers of Thailand's exports. Notably, a jump in gold exports for a second month kept Thailand's exports robust. Maybank analysts Erica Tay and Chua Hak Bin noted in a recent report that exports of the yellow metal surged 250.5 per cent in April (and 269.5 per cent in March), which accounted for a third of export growth in Thailand – one of the largest physical gold trading hubs. While there is little visibility on bilateral trade talks with the US, the house expects tariffs on Thailand to stay within 30 per cent. — GOH RUOXUE Vietnam: tariff boost to factory blues Vietnam posted strong export growth in April, driven by a spike in orders after the US delayed its 'Liberation Day' tariffs and temporarily exempted some electronic goods. Despite facing a looming 46 per cent reciprocal tariff – among the highest in Asia – Vietnam's exports and imports surged in April by 19.8 per cent and 22.9 per cent year on year to US$37.45 billion and US$36.87 billion, respectively, Vietnam Customs indicated. However, exports dipped 2.8 per cent from March, while imports were flat. Vietnam's electronics exports surged nearly 59 per cent in April, while footwear and textiles rose more than 20 per cent and 17 per cent, respectively, boosting its trade surplus with the US by 25 per cent in the first four months of 2025. At the same time, its trade deficit with China widened by more than 44 per cent. The balance of trade is a key point in the tariff negotiations between Hanoi and Washington. The two countries concluded their second round of trade talks on May 22 and are expected to continue in early June, based on a statement from Vietnam's trade ministry. So far, Hanoi has not only offered to purchase more US goods and reduced tariffs on certain imports, but has also taken steps to address Washington's non-tariff concerns, including fraud related to the origin of goods transshipped from China. Tariff uncertainty is dampening sentiment among Vietnamese manufacturers, with business confidence sinking to its lowest since August 2021, according to S&P Global's April purchasing manager's index survey. Factory activity shrank at the fastest pace since May 2023, as new orders and overseas demand had sharp declines. — JAMILLE TRAN Indonesia: short-term gains, long-term doubts Indonesia's exports climbed 5.8 per cent year on year in April to US$20.7 billion, driven by a 60 per cent increase in electrical machinery shipments and solid gains in iron and steel. Meanwhile, imports jumped 21.8 per cent year on year to US$20.6 billion in April, outpacing export growth and dragging the monthly trade surplus down to a five-year low of US$158.8 million, based on data released by the statistics agency on Jun 2. On a monthly basis, Indonesia's exports dropped 10.8 per cent, which Permata Bank economist Josua Pardede attributed to the typical slowdown during the Eid holidays. 'Additionally, weaker prices for key commodities like crude palm oil and coal are expected to have contributed to the monthly decline,' he said. Exports to the US jumped 18.4 per cent year on year in April, with Bank Central Asia economist David Sumual attributing the rise to front-loading shipments ahead of impending US tariffs. Indonesia's non-oil and gas exports to the US were driven by machinery and electrical equipment, up 17 per cent, alongside solid gains in footwear and apparel. This helped deliver a US$5.4 billion trade surplus with the US from January to April – now under scrutiny as Washington considers a 32 per cent tariff on key sectors. In contrast, Indonesia posted a US$6.9 billion trade deficit with China over the same period, driven by surging imports of machinery, vehicles parts and electronics. Sumual said: 'It appears there is also dumping of goods from China ahead of the tariff deadline.' Maybank economist Brian Lee said the rerouting and import surge from China will likely ease in May and reduce pressure on the trade surplus, given China's trade deal with the US that cut tariffs to 30 per cent from 145 per cent for 90 days. Economists at Samuel Sekuritas wrote while exports are expected to stay positive, global uncertainties and a weaker rupiah could limit gains and raise import costs. — ELISA VALENTA The Philippines: modest tariffs, muted trade Front-loading tied to the Philippines tapered off after the announcement of the tariffs, which imposed a relatively modest 17 per cent levy – the second-lowest among Asean countries after Singapore. If enacted after the 90-day pause, the lower tariff could make Philippine goods more competitive in the US, positioning the net-importing nation to attract diverted trade and investment despite its limited reliance on export-led growth. 'We'll have to wait and see if this does materialise into better export volumes to the US,' said Nicholas Antonio T Mapa, chief economist at Metropolitan Bank. ANZ Research expects a trade agreement between Manila and Washington could be struck by the end of June, with a possible lower tariff rate of 10 to 15 per cent. Preliminary data from the Philippine Statistics Authority showed weaker trade in April, with total value down 2 per cent year on year. Exports rose 7 per cent but marked their slowest growth this year and fell 9.2 per cent from March, while imports dropped 7.2 per cent year on year and 8 per cent monthly – the first decline since December. Electronics remained the top export, accounting for more than half of outbound sales. The trade deficit from January to April narrowed slightly to US$15.9 billion. April's import slump reversed the sharp 17.8 per cent surge seen in March – the strongest since August 2022. The steepest drop came from mineral fuels and lubricants, down 35.1 per cent, while imports of raw materials and intermediate goods – a key gauge of production outlook – swung from a 22.4 per cent rise to an 11 per cent decline. 'It was partly tied to softer prices (on weakening greenback) but perhaps also evidence of moderating demand,' added Mapa. The Philippines' economy relies heavily on domestic consumption, which accounts for about two-thirds of the country's gross domestic product. –– JAMILLE TRAN
Business Times
03-06-2025
- Business
- Business Times
South-east Asia's export rush wanes as tariff clock ticks down
[SINGAPORE/KUALA LUMPUR/HANOI/JAKARTA] South-east Asia's export boom may be running on borrowed time as traders rush to front-load goods ahead of the end of US President Donald Trump's 90-day tariff pause on Jul 9, masking signs of fading momentum. While April's export data climbed year on year across much of the region, a closer look reveals a month-on-month slowdown that is already hitting Thailand, Vietnam and the Philippines, with the rest of South-east Asia likely to follow by the second half of the year. April trade figures suggest not just front-loading, but also a possible rerouting of US-destined China-origin goods through Asean economies, said Nomura analysts Rob Subbaraman and Toh Si Ying. Such front-loading means Asian export growth in the second quarter of the year could be stronger than projected, noted the duo in a May 28 report. But they warned that this may just be 'a brief respite before an Asian export slump in H2, driven by the inevitable payback from front-loading and an overall slowdown in global trade activity caused by the highest US tariff rates in over 80 years and historically high business uncertainty'. The major exporters in trade-reliant South-east Asia – Indonesia, Thailand, Malaysia, Vietnam and Singapore – face a looming slowdown. On the other hand, the Philippines – a net importer – saw front-loading taper off early. It could ultimately benefit from trade diversion and a potential US deal, as tariffs position its goods to become more competitive. The Business Times breaks down how the shifting trade tide is unfolding across the region. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Singapore: surge now, strain later Singapore's non-oil domestic exports surged 12.4 per cent in April – the fastest pace since July 2024 – driven by gains in both electronics and non-electronics, with the former buoyed by current tariff exemptions. The surprise jump was largely driven by front-loading, as exporters raced to capitalise on the tariff pause and get ahead of looming sector-specific duties on pharmaceuticals and semiconductors. The current boost is 'really no consolation', as advanced sales mean that exports will slow when markets have stocked up, said Deputy Prime Minister Gan Kim Yong recently as he gave an update on the work of the Singapore Economic Resilience Taskforce. Gan, who leads Singapore's tariff talks with the US, said Washington is open to discussion on 'some form of concession' in the impending sectoral tariffs, though it will not budge on the baseline 10 per cent duty. Economists warned of medium to long-term risks amid uncertainty over Trump's next move, though sentiment has improved with the unexpectedly swift easing of US-China trade tensions, said UOB's Jester Koh. But OCBC chief economist Selena Ling warned that whether the two players can reach a permanent trade deal remains to be seen. DBS senior economist Chua Han Teng flagged that global trade frictions remain elevated compared to pre-Trump 2.0 which could be a drag on Singapore's 2025 exports, though likely less severe than earlier feared. — ELYSIA TAN Malaysia: trade momentum meets tariff jitters Malaysia's exports rose 16.4 per cent year on year to RM133.6 billion (S$40.5 billion) in April, as exporters rushed to beat a now-delayed US tariff hike. The jump, from RM114.7 billion a year earlier, was led by a 9.1 per cent rise in domestic exports and a 46 per cent surge in re-exports, driven by strong global demand for electrical and electronic products. Electrical and electronic exports, led by semiconductors and data processing equipment, jumped 35.4 per cent year on year, marking five straight months of double-digit growth. Malaysia's total trade rose 7.2 per cent in the first four months of 2025, with MIDF Research expecting export growth to hold over the next few months as firms take advantage of the temporary tariff reprieve. Analysts remain cautious, with MIDF forecasting a slowdown in export growth to 2 per cent and imports to rise 4.5 per cent, as trade uncertainty and tariff risks persist. Bank Negara expects front-loaded exports to normalise soon. UOB economists Julia Goh and Loke Siew Ting flagged ongoing uncertainty as US trade talks continue, noting firms may scale back production on weaker demand expectations. Pending clearer outcomes, UOB maintains its 2025 export growth for Malaysia forecast at 3.8 per cent. — TAN AI LENG Thailand: export fever cooling Thailand may have notched its tenth straight month of year-on-year export growth in April, but the pre-tariff shipping rush is losing steam. Exports rose 10.2 per cent from the prior year – a clear pullback from March's 17.8 per cent surge. Thailand posted US$25.6 billion in exports in April, amounting to a US$3.3 billion trade deficit, revealed data released by the kingdom on May 26. Bank of America's emerging Asia economist Pipat Luengnaruemitchai said April's cooling confirms the house's view that the strong first-quarter performance was temporary, driven by front-loaded shipments ahead of anticipated tariffs. In a May 26 report on Thailand's trade balance, he said: 'Combined with limited domestic production gains and increasing external pressure, Thailand's export and trade balance outlook remains weak in the coming quarters.' He added that more Chinese products may enter the kingdom as Beijing sources for alternative markets. Industrial and agro-industrial products continue to be key growth drivers of Thailand's exports. Notably, a jump in gold exports for a second month kept Thailand's exports robust. Maybank analysts Erica Tay and Chua Hak Bin noted in a recent report that exports of the yellow metal surged 250.5 per cent in April (and 269.5 per cent in March), which accounted for a third of export growth in Thailand – one of the largest physical gold trading hubs. While there is little visibility on bilateral trade talks with the US, the house expects tariffs on Thailand to stay within 30 per cent. — GOH RUOXUE Vietnam: tariff boost to factory blues Vietnam posted strong export growth in April, driven by a spike in orders after the US delayed its 'Liberation Day' tariffs and temporarily exempted some electronic goods. Despite facing a looming 46 per cent reciprocal tariff – among the highest in Asia – Vietnam's exports and imports surged in April by 19.8 per cent and 22.9 per cent year on year to US$37.45 billion and US$36.87 billion, respectively, Vietnam Customs indicated. However, exports dipped 2.8 per cent from March, while imports were flat. Vietnam's electronics exports surged nearly 59 per cent in April, while footwear and textiles rose more than 20 per cent and 17 per cent, respectively, boosting its trade surplus with the US by 25 per cent in the first four months of 2025. At the same time, its trade deficit with China widened by more than 44 per cent. The balance of trade is a key point in the tariff negotiations between Hanoi and Washington. The two countries concluded their second round of trade talks on May 22 and are expected to continue in early June, based on a statement from Vietnam's trade ministry. So far, Hanoi has not only offered to purchase more US goods and reduced tariffs on certain imports, but has also taken steps to address Washington's non-tariff concerns, including fraud related to the origin of goods transshipped from China. Tariff uncertainty is dampening sentiment among Vietnamese manufacturers, with business confidence sinking to its lowest since August 2021, according to S&P Global's April purchasing manager's index survey. Factory activity shrank at the fastest pace since May 2023, as new orders and overseas demand had sharp declines. — JAMILLE TRAN Indonesia: short-term gains, long-term doubts Indonesia's exports climbed 5.8 per cent year on year in April to US$20.7 billion, driven by a 60 per cent increase in electrical machinery shipments and solid gains in iron and steel. Meanwhile, imports jumped 21.8 per cent year on year to US$20.6 billion in April, outpacing export growth and dragging the monthly trade surplus down to a five-year low of US$158.8 million, based on data released by the statistics agency on Jun 2. On a monthly basis, Indonesia's exports dropped 10.8 per cent, which Permata Bank economist Josua Pardede attributed to the typical slowdown during the Eid holidays. 'Additionally, weaker prices for key commodities like crude palm oil and coal are expected to have contributed to the monthly decline,' he said. Exports to the US jumped 18.4 per cent year on year in April, with Bank Central Asia economist David Sumual attributing the rise to front-loading shipments ahead of impending US tariffs. Indonesia's non-oil and gas exports to the US were driven by machinery and electrical equipment, up 17 per cent, alongside solid gains in footwear and apparel. This helped deliver a US$5.4 billion trade surplus with the US from January to April – now under scrutiny as Washington considers a 32 per cent tariff on key sectors. In contrast, Indonesia posted a US$6.9 billion trade deficit with China over the same period, driven by surging imports of machinery, vehicles parts and electronics. Sumual said: 'It appears there is also dumping of goods from China ahead of the tariff deadline.' Maybank economist Brian Lee said the rerouting and import surge from China will likely ease in May and reduce pressure on the trade surplus, given China's trade deal with the US that cut tariffs to 30 per cent from 145 per cent for 90 days. Economists at Samuel Sekuritas wrote while exports are expected to stay positive, global uncertainties and a weaker rupiah could limit gains and raise import costs. — ELISA VALENTA The Philippines: modest tariffs, muted trade Front-loading tied to the Philippines tapered off after the announcement of the tariffs, which imposed a relatively modest 17 per cent levy – the second-lowest among Asean countries after Singapore. If enacted after the 90-day pause, the lower tariff could make Philippine goods more competitive in the US, positioning the net-importing nation to attract diverted trade and investment despite its limited reliance on export-led growth. 'We'll have to wait and see if this does materialise into better export volumes to the US,' said Nicholas Antonio T Mapa, chief economist at Metropolitan Bank. ANZ Research expects a trade agreement between Manila and Washington could be struck by the end of June, with a possible lower tariff rate of 10 to 15 per cent. Preliminary data from the Philippine Statistics Authority showed weaker trade in April, with total value down 2 per cent year on year. Exports rose 7 per cent but marked their slowest growth this year and fell 9.2 per cent from March, while imports dropped 7.2 per cent year on year and 8 per cent monthly – the first decline since December. Electronics remained the top export, accounting for more than half of outbound sales. The trade deficit from January to April narrowed slightly to US$15.9 billion. April's import slump reversed the sharp 17.8 per cent surge seen in March – the strongest since August 2022. The steepest drop came from mineral fuels and lubricants, down 35.1 per cent, while imports of raw materials and intermediate goods – a key gauge of production outlook – swung from a 22.4 per cent rise to an 11 per cent decline. 'It was partly tied to softer prices (on weakening greenback) but perhaps also evidence of moderating demand,' added Mapa. The Philippines' economy relies heavily on domestic consumption, which accounts for about two-thirds of the country's gross domestic product. –– JAMILLE TRAN
Epoch Times
26-05-2025
- Automotive
- Epoch Times
Report Says China's BYD Outsells Tesla in Europe for First Time, Experts Warn of Dumping
Chinese automaker BYD in April sold more battery electric vehicles in Europe than Tesla for the first time, according to an automobile market research firm. Experts warn that this is the result of the Chinese Communist Party's (CCP's) ongoing dumping practices in world markets. BYD registered 7,231 new battery electric vehicles in April, which is a 169 percent year-on-year increase, according to Globally, BYD has surpassed Tesla to become the world's largest EV seller. The Chinese automaker's rapid expansion has raised concerns. The European Union has imposed higher tariffs on China-origin EVs—as much as 45.3 percent since last year—citing significant subsidies by the CCP that distort competition and disadvantage EU automakers. Despite this, overall registrations of China-origin electric cars in April rose by 59 percent year on year, reaching almost 15,300 units, according to the Jato Dynamics report. To continue its gains in the EU market and to bypass EU tariffs, BYD is building an EV production base in Hungary that will start operation in October. It's also building a factory in Turkey that is expected to start production in March 2026. When fully operational, these two factories will have a total production capacity of 500,000 cars per year. Hybrid Vehicles Meanwhile, BYD and other China-based automakers have also significantly increased their sales of plug-in hybrid vehicles (PHEVs), which have not been targeted by the EU with higher tariffs. In April, BYD's PHEV sales jumped by 546 percent year on year from 1,493 units in April 2024 to 9,649 units in April 2025, 'meaning Chinese car brands now account for almost 10 percent of the total number of PHEVs registered in Europe,' Jato Dynamics reported. Related Stories 5/25/2025 5/25/2025 'It remains to be seen whether the EU will respond to the boom in Chinese-made PHEVs by imposing tariffs on these vehicles too,' Felipe Munoz, global analyst at JATO Dynamics, noted. The draw toward BYD and other China-made cars, especially EVs, in Europe is based on economic considerations, Wang Shiow-wen, assistant researcher at Taiwan's Institute for National Defense and Security Research, told The Epoch Times on May 23, noting that the cars are relatively cheaper. 'I don't think we can conclude that BYD's European sales have surpassed Tesla based on just one month's car registrations, because according to the bar graph of the data in the report, the growth rates of electric vehicle registrations in Europe in April for Porsche, Ford, Skoda and other brands, and even China's Xpeng electric vehicle registration growth rate, all exceeded BYD,' Wang said. 'It might be more appropriate to interpret it as Tesla electric vehicle sales in Europe having dropped sharply.' Analysts have attributed declining Tesla sales since last year to CEO Elon Musk's involvement in U.S. politics, an aging model lineup, and a halt in production as the company redesigns its popular Model Y. Some consumers are also waiting for the newer Model Y to come out later this year before purchasing a Tesla. 'Tesla's reliance on a singular, brand-driven model' and 'Elon Musk's polarizing persona' have put Tesla at a disadvantage in competition with BYD in the European market, U.S.-based economist Davy J. Wong told The Epoch Times on May 23. 'BYD, on the other hand, has aggressively deployed a state-subsidized price-dumping model, sacrificing margins to gain market share,' he said. 'Crucially, its battery supply chain strategy outsources environmental risk: Europe enjoys the product while China absorbs the pollution and end-of-life battery costs, effectively subsidizing BYD's market entry.' Exploiting Gaps in EU Disunity and Policies Wong said that 'BYD's current success hinges on exploiting internal fractures within the EU.' 'Major car-producing nations like France, Germany, and Italy perceive Chinese EVs as a direct threat, while Eastern European countries such as Hungary and Serbia welcome Chinese investment as an economic stimulus,' he said. However, this is temporary, as such 'geopolitical arbitrage may yield short-term gains, but if the EU initiates a bloc-wide anti-subsidy investigation or enforces carbon footprint-based import restrictions, the regulatory environment could turn sharply unfavorable for BYD,' he said. Wong noted that 'Europe currently represents China's last major buffer zone for exports.' 'With the U.S. tightening restrictions and global demand stagnating, Europe's internal divisions and green transition vulnerabilities offer a rare exploitable space,' he said. However, this strategy of the Chinese regime 'is entirely contingent on Europe's internal disunity,' he said. 'Should the EU's political mood shift to the right or coalesce around a unified trade defense, the opening could close as swiftly as it appeared,' he said. President Donald Trump A BYD Seal U model car at the stand of the Chinese carmaker at the Geneva International Motor Show in Geneva on Feb. 27, 2024. Fabrice Coffirini/AFP However, if the United States imposes high tariffs on both Chinese and European products, 'it will prompt China and Europe to deepen trade exchanges, then China's influence on Europe's political economy may be deeper and wider,' Wang said. But Europe then may in turn be able to influence China's politics and economy, she said. 'After all, China needs the European market to make up for the lost market share in the United States,' she said. BYD's lead over Tesla in Europe in April is not a final victory, Wong said, 'but rather the product of structural asymmetries and misaligned global policy cycles.' 'The sustainability of its advantage will depend on whether BYD can adapt to Europe's evolving political climate, and whether its globalization strategy possesses the necessary resilience and responsiveness to withstand systemic shifts,' he said. Luo Ya and Reuters contributed to this report.
