Chinese carmakers may establish bases in Mexico to flood US market with cheap EVs, threatening US auto industry's future.

America's auto industry fears that Chinese carmakers may establish bases in Mexico, exploiting North American trade rules, to flood the US market with cheap electric vehicles (EVs). This could lead to factory closures and job losses, similar to how subsidized Chinese competition impacted the steel and solar equipment industries in the past 25 years. The low-priced Chinese EVs pose a potential "extinction-level event" for the US auto industry, which sees electric vehicles as central to its future business.

June 27, 2024
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