Nio Highlights Importance of Openness in US Speech Amid China-US Strain
William Li, founder of Chinese electric vehicle (EV) maker Nio, emphasized the importance of openness and competition in the EV market during a rare speech at Harvard University. He pointed to the success of Tesla in China as evidence of the benefits of an open and competitive market environment.
Li highlighted the rapid growth of EVs in China, attributing it to a market where all products are welcome regardless of their brands or origins. He argued that competition drives greater investment, longer time to break even, less margin for mistakes, and ultimately leads to better companies and industry sustainability.
However, tensions between China and the West over Chinese EV exports have escalated, with concerns over state subsidies and their potential impact on domestic automakers. The European Union is investigating Chinese EV makers such as BYD, Geely, and SAIC, which could lead to tariffs over the subsidies.
Despite these tensions, few Chinese-made EVs are sold in the U.S. market due to steep tariffs already in place. President Joe Biden is reportedly considering raising tariffs on Chinese EVs, with Republican and Democratic senators raising concerns, including fears of national security.
Nio, one of China’s biggest EV makers, is exploring the feasibility of selling its vehicles in the U.S. market every quarter. While Tesla remains dominant in the Chinese market, selling significantly more cars than Nio, Li sees potential for Nio to expand internationally.
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