China’s Strategy to Circumvent Auto Tariffs

China’s auto industry has rapidly ascended to global dominance, with its exports reshaping the competitive landscape of the automotive market. In just a few years, Chinese automakers have leveraged their manufacturing efficiency and technological advancements—particularly in electric vehicles (EVs)—to capture significant market share worldwide. However, this rapid expansion has not gone unnoticed. A growing wave of trade barriers from key markets, including the European Union, the United States, and several emerging economies, is now challenging China’s auto export momentum. As protectionist measures tighten, Chinese automakers are adapting by shifting their strategies, increasingly focusing on overseas production to maintain their foothold in critical markets. Let’s have a closer look.

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