China tells automakers to pause investment in tariff-supporting countries
China has reportedly already told its major automakers to hold off investments in EU countries that supported Europe’s new EV tariffs, according to Reuters.
While China started a little slow in the EV game, its investments into EV manufacturing have now started to bear fruit, and the country’s manufacturers have rapidly caught up and now passed western automakers, particularly on price.
As a result, both Europe and the US have recently imposed large tariffs on Chinese EVs, fearing that Chinese cars will undercut domestic industry with lower manufacturing costs. Chinese EVs are already quite popular in Europe, though very few sell in the US.
While the EU tariff vote passed handily, the voting patterns among countries mostly reflected fear of retaliatory tariffs. As is often the case with tariffs, a country can’t simply impose a restriction without expecting any pushback.
This is why, for example, Germany voted against the final tariff despite abstaining for the initial vote. German automakers do a lot of high-margin business in China, and worried that China would no longer purchase their autos either because of retaliatory tariffs or consumer animosity towards foreign brands (which is already happening, well before these tariff talks).
And China specifically has been quite effective in the past at responding to tariffs with targeted retaliatory tariffs of its own. Indeed, they’re already investigating EU dairy and wine products as potential tariff targets.
So it’s no surprise that today, on the same day as EU’s new tariffs went into effect, a report from Reuters says that the Chinese government has told automakers to think carefully before investing in Europe, particularly in countries that voted in favor of or abstained from the EU’s tariff imposition.
Several Chinese automakers are already considering building factories in Europe in order to localize production and bypass tariffs, including BYD, Geely and XPeng. This is kind of the intended effect of tariffs – ensuring that foreign automakers will invest in local production and local jobs.
But China wants to ensure that that investment money goes to countries that didn’t vote in favor of tariffs. BYD for example is currently building a plant in Hungary, a country that voted against the tariffs.
Meanwhile, other countries that did vote for the tariffs have attempted to get Chinese firms to invest in building factories there, like France and Italy. But this new directive would make their path towards investment tougher, if Chinese firms follow the government’s guidance.
This is likely not the only action that China will take in response to EU’s tariffs, merely a preliminary one. But it does show China’s willingness to swiftly respond to countries imposition of trade restrictions.
Concurrently, discussions are ongoing between EU and China about a potential minimum pricing deal to avoid tariffs. The hope was for those to conclude before tariffs were imposed, but it seems that they will have to continue.
Electrek’s Take
As I’ve said many times before, tariffs on China are not the answer to winning the EV arms race. I think countries would be much better off incentivizing local production than disincentivizing overseas production, and all the messy secondary effects that come along with the latter.
Further, tariffs can often lead to a sense of complacency for domestic manufacturers, who encourage them so they can have time to ramp up, and then take that time to slow-roll their ramp so that they end up back where they started. We saw this in the 70s with Japan in steel and autos – and the emergency tariffs did not forestall 50 years of Japanese export dominance (they were only kicked dethroned as #1 auto exporter last year – by China).
So despite the entrance of China onto the international automaker stage, most of the last year has been characterized by automakers doing their damnedest to slow down EV adoption. They’re scaling back production plans despite increasing EV demand , they’re begging governments to allow them to pollute more, and they’re generally not indicating that they’ll use the “time” these tariff impositions have given them wisely.
If this continues, then all Europe will get for its tariffs are a delay of the inevitable. They might still get some factories, but those factories will be owned by foreign entities instead of local ones. And this will come along with a lot of pain for whichever industries China decides to target with retaliatory tariffs, and with less competition and more inflation for local consumers as auto prices are buoyed by these tariffs.
I know I keep repeating myself (for more than a decade now…), but the true answer to this would have been to take EVs seriously from the get-go, instead of all the waffling that Western automakers have done that has left them now behind. That should have started long ago, but as the famous (possibly Chinese) proverb says: “the best time to plant a tree is 20 years ago, the second best time is today.”
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Get ready, children. There’s a new electric bike licensing scheme that will soon be tested as one of several methods designed to help educate young riders on responsible road use and combat the growing concern of dangerous e-bike riding among youths around the world.
Known as the Student Bicycle License Scheme (SBLS), the proposal in New South Wales, Australia, will operate as a trial of a new licensing program for electric bike riders. The program targets school-aged e-bike riders in response to a growing number of accidents and misuse cases involving young riders.
The pilot program will require students to complete an online training course and pass a knowledge test before being issued a digital license to ride an e-bike or e-scooter. The scheme is expected to launch later this year in select schools, and if successful, could pave the way for a broader rollout.
Schools in Sutherland and Newcastle have reportedly expressed interest in joining the program, which leaves it up to individual schools to decide how they wish to use the new license program. For example, they can make it mandatory for students who want to ride to school or use secured bicycle parking facilities at the school.
The trial will initially focus on education rather than enforcement. Students who complete the course will receive a digital “ride-ready” credential, but there are currently no plans to introduce fines or penalties for unlicensed riders during the pilot phase. The government is partnering with road safety experts and schools to develop the training materials, which will cover speed limits, helmet use, sidewalk etiquette, and proper intersection behavior.
Australia’s National Transport Research Organisation is also reviewing current electric micromobility laws, with a report expected by the end of the year. The Queensland trial is seen as a possible blueprint for other regions facing similar safety concerns.
The announcement comes as electric bikes become increasingly popular among Australian youth, not just as toys, but as practical transportation to and from school, work, and social events. With that growth has come scrutiny – several high-profile crashes, some involving modified or overpowered e-bikes, have pushed lawmakers to act.
The same phenomenon is playing out around the world, including in Europe and the US, where young riders have increasingly taken to electric bikes as an alternative form of transportation, though one that has raised concerns around road safety among a young populace who has yet to learn the rules of the road.
Electrek’s Take
This is one of several school-level educational outreach programs we’ve seen pop up lately, and I think these are great ideas.
While the idea of requiring a license to ride an e-bike might sound extreme in some places, Australia’s approach here is education-first, and it could actually be a smart move. It also seems like the license is designed to be effective without being a burden. If you can grasp the knowledge, you can pass the test. And since many of the issues surrounding young e-bike riders arise from a general ignorance of road rules, this could be an effective solution. Teaching young riders the rules of the road before they hit the pavement might help reduce injuries and improve public perception of micromobility. Plus, the fact that it is a digital license means that there would presumably be fewer costs involved, which will hopefully allow the program to be free of charge and further reduce the burden of the licensing process.
Of course this won’t do anything for the “hooligan” riders who know the rules and simply don’t care, but that’s where enforcement has to step in as the heavy-handed partner to education.
I think this is a great example of balanced e-bike regulation. A measured mix of education and enforcement is key to ensuring e-bikes remain safe while taking advantage of their myriad benefits to the public. And hey, it sure makes a lot more sense than NYC trying to cut the speed of all electric bikes in half overnight.
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The State of California is moving to ban the sale of Tesla cars amid claims that the company and its CEO, Elon Musk, have misled buyers about the self-driving capabilities of their cars. We’ve also got market-leading news out of Vietnam and a pricey, pricey lesson for one VW ID.Buzz buyer on today’s lesson-learning episode of Quick Charge!
We also ask what this might mean for the recent Uber/Lucid autonomous taxi tie-up and go through a full rundown of the fastest depreciating EVs on the market (and yes, there are four Tesla models in the top 10 … because the Cybertruck was too new to qualify).
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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Sunrun is putting tens of thousands of home batteries to work in Puerto Rico as the island’s electric grid faces a summer of high temperatures and energy shortfalls.
The company says it’s now dispatching energy from over 37,000 residential batteries to help grid operator LUMA keep the lights on. That stored power is being used to prevent rolling blackouts when demand spikes and centralized power plants can’t keep up.
Sunrun’s emergency power contribution has grown more than tenfold since last summer. LUMA expects more than 75 energy shortfall events between now and October, with each dispatch sending electricity to the grid for four consecutive hours. During several recent evenings, Sunrun and other virtual power plant (VPP) operators provided enough energy to offset a 50-megawatt generation gap, LUMA said.
Sunrun CEO Mary Powell said Puerto Rico’s aging infrastructure and intense weather patterns make home battery support increasingly critical:
It’s going to be a very difficult summer, which is why Sunrun has ramped up our dispatch capabilities, using tens of thousands of home batteries to support the grid and people of Puerto Rico.
She added that distributed power plants like Sunrun’s serve the same role as natural gas peaker plants – offering fast, reliable power during high-demand moments – but with clean energy.
Sunrun customers enrolled in the VPP will get paid too. Each participating battery earns about $200 minimum for the season, and customers who allow more of their stored energy to go to the grid earn even more. Sunrun also earns revenue for operating the VPP.
Read more: The US’s largest virtual power plant now runs on 75,000 home batteries
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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