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Insights

Insights

| 1 minute read

Britain’s unusual stance on Chinese electric vehicles

There is no point closing the gate, when the horse has already bolted!  That seems to be an understanding the British have, that the US in particular, and some European states, France for example, don't choose to grasp, where EVs and cleantech are concerned at least. Politics is complex, and often more about narrative than efficiency or reality, especially populist politics.  It's notable from this piece that the British Auto industry, what is left of it, isn't pushing for trade tariffs, nor were the German OEMs, who would seem to have most to lose.  Nature shows you can never turn back a tide, you have the mitigate and adapt. This is increasingly becoming apparent in Climate change. I digress.  

What the article highlights is the futility and self-harm of protectionist policies over EV's. In a trade war with China who can win? Certainly not Britain, and probably no-one else. Offshoring manufacturing to China over decades is the horse that has bolted.  For the sake of our economies, and our environment, we must embrace cheaper Chinese EVs. And we must ensure our European, US and British Automotive OEMs try to compete, instead of stamping their feet, raging at everyone else when it is they that were sleeping at the wheel, while China raced ahead. European OEMs must compete on their strengths, the things that made European cars the best in the world (American cars have always sucked- Tesla trying to buck that trend). Am I for investment and support for British and European manufacturers and their battery supply chains, even some subsidy where needed, yes I am. But trade wars and raging against the tide, no. After all, a rising tide lifts all boats, unless they are anchored to the floor, then only sinking is guaranteed. 

What are your thoughts?

David

Wisely, Britain’s new Labour government has so far largely leant away from such protectionism. Jonathan Reynolds, the business secretary, said in July that he was not planning to ask the independent Trade Remedies Authority (tra) to investigate Chinese evs, a necessary first step towards tariffs. Britain’s own car industry, which can also demand an investigation, has held off, too.

Tags

electricvehicles, china, tradewars, investment, leadership, batteries, cleantech, climate tech, emobility, future mobility, energy storage, grid, renewable energy, solar, smartcities