Chinese EV makers' growth sparks worries of impact on US auto industry
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Chinese automaker BYD recently surpassed Tesla in global EV sales. Elon Musk warns Chinese firms will "demolish most other car companies" without trade barriers.
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BYD and other Chinese automakers are building plants in Mexico to export cars duty-free to the US under USMCA rules, bypassing 25% US tariffs on Chinese auto imports.
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House lawmakers warn of a "coming wave" of cheap Chinese EVs entering from Mexico due to favorable USMCA terms.
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Chinese EV makers benefit from heavy government subsidies and control most of the EV supply chain, keeping costs ultra-low.
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The Alliance for American Manufacturing says the influx of cheap Chinese EVs could be an "extinction-level event" for the US auto industry. US automakers are exploring joint ventures to compete.