As Chinese automakers accelerate their overseas expansion, Western auto companies are beginning to panic. Raising auto tariffs is just the beginning, but it also shows us that the trend of Chinese auto globalization is unstoppable!

After strictly controlling the export of high-tech and cutting-edge technologies to China, Western countries have begun to resist the import of Chinese high-tech products, citing outdated reasons such as subsidies and potential low-price dumping due to overcapacity, which could harm local economies and industrial development.

Automobiles are one of the high-tech products exported by China. Chery Automobile, the top Chinese automaker in terms of export volume, has long targeted non-developed regions such as Southeast Asia and South America, while new energy vehicles led by BYD have directly entered Europe, the birthplace of the automotive industry.

After decades of fuel engine technology and patent blockades, China's new energy vehicles have embarked on a lightweight journey, overtaking through a different path. The global moment for Chinese automobiles has finally arrived.

From technology and standards to markets, Western countries have designed a comprehensive set of international trade rules to maintain their global leadership in all aspects, especially in the automotive market. For example, the North American market remains a black hole for Chinese automakers.

However, after decades of trading technology for markets, Chinese automakers have gradually become on par with multinational automakers in terms of technology, quality, and service, and have taken a significant lead in the new energy vehicle market.

As the global barriers of multinational automakers began to crumble due to the emergence of new energy vehicles, Western countries could only resort to old tricks, smearing China's subsidies for new energy vehicles as leading to overcapacity and low-price dumping in the global market.

Chinese automakers face a substantial overcapacity issue. On the one hand, new energy vehicle production capacity is growing rapidly, while on the other hand, sales of fuel vehicles led by joint venture automakers continue to decline. Between this increase and decrease, the release of production capacity in the Chinese automotive market must move towards the global market.

Judging from the new energy vehicles launched by joint venture automakers, it is understandable why Western countries believe that Chinese new energy vehicles are low-priced dumping after subsidies, even though their overseas prices are much higher than those in the Chinese market.

Global automakers such as Toyota, Volkswagen, and Nissan have exported new energy vehicles to China, but compared to the relatively small scale of fuel vehicles, these vehicles lack product strength and are sold at exorbitant prices, ultimately falling into a vicious cycle of high prices and lack of interest.

Just as Tesla has demonstrated the bright future of new energy vehicles, leading new energy automakers such as BYD and Lixiang have already begun to turn a profit after achieving economies of scale, and more automakers are seeing the light at the end of the tunnel.

To be fair, as a new phenomenon, new energy vehicles receive substantial subsidies in all major global automotive markets, including China.

However, the real explosion of China's new energy vehicle industry has only occurred in recent years, while subsidies for new energy vehicles have gradually decreased. Consumers can enjoy benefits such as tax exemptions for vehicle purchases and boat taxes, as well as free vehicle quotas in cities with purchase restrictions.

As for China's automotive industry policy to promote new energy vehicles, it is an inevitable measure to achieve the maturity and stability of new energy vehicles, backed by multiple factors such as the dual-carbon goal and green environmental protection.

Western countries' concerns that China's overcapacity in new energy vehicles will destroy the global automotive pricing system precisely illustrate that their new energy vehicle products can no longer lead the global market and cannot prevent the rise of Chinese new energy vehicles in the global market through patents and technology.

For multinational companies, in addition to product costs, prices also include brand premiums, which can even exceed product costs.

As a latecomer, China's new energy vehicles have the scale advantages and complete industrial chains that global automakers lack, as well as the most promising new energy vehicle industry environment in the world. At the same time, their brand premiums are not as outrageous as those of multinational automakers.

Whether it's the European government's investigation into Chinese electric vehicles or the US effectively stating that Chinese new energy vehicles are disrupting the global automotive pricing system, the rise of Chinese new energy vehicles is no longer characterized by low quality and low prices.

Traditional automotive production regions such as the US, Europe, and Japan must defend their advantages, but other global markets, including China, which has suffered from their high prices for a long time, are no longer willing to pay for overpriced vehicles.

In addition to developed markets such as Europe, Australia, and Japan, China's new energy vehicles are also accelerating their expansion into emerging markets that require a large number of imported vehicles, similar to traditional fuel vehicles such as Chery and Great Wall Motors.

Southeast Asia, South America, the Middle East, and Russia are becoming the main markets for Chinese automakers to collectively expand overseas, and these markets were once the backyards of multinational automakers.

Chinese new energy vehicles are not only squeezing the development space of multinational automakers in the Chinese market but are also gradually seizing their overseas markets, which is the greatest fear of Western countries because they lack both technical barriers and equivalent products.

After years of exploiting the global market through the scale and technical barriers of fuel vehicles, the global dreams of multinational automakers are finally about to be shattered by Chinese new energy vehicles.

From power batteries to semiconductors, Chinese automakers are entering the global market with self-developed technologies, either by partnering with local dealers to export vehicles or by directly building factories in major markets to achieve localized supply.

After being heavily suppressed in the era of fuel vehicles, Chinese automakers have emerged with leading new energy vehicle companies such as BYD, Aion, CATL, and Huawei. This is not only a global moment for Chinese automakers but also a true global automotive moment for users worldwide.