China’s NEV global expansion and the rise of global trade protectionism happened nearly simultaneously. As BYD, SAIC, Changan, and Geely accelerated their entry into European, North American, and Southeast Asian markets in 2023-2024, trade investigations and tariff barriers premised on “Chinese EV threat” narratives followed in rapid succession.
## Tariff Landscape in Key Markets
**European Union**: In October 2024, the EU imposed anti-subsidy tariffs on top of the 10% base rate: BYD +17% (total 27%), Geely +18.8% (total 28.8%), SAIC +35.3% (total 45.3%), other Chinese automakers +21.3% (total 31.3%). The EU investigation found Chinese EVs benefiting from government subsidies that distort market competition. But internal EU divisions are clear: Germany (with massive VW, BMW, and Mercedes-Benz exposure to China) opposes high tariffs; France and Italy support them.
**United States**: the Biden administration raised Chinese EV tariffs from 27.5% to 100% in May 2024; Trump maintained and expanded these in 2025. Practical result: Chinese brand vehicles are largely absent from North American markets, but battery companies like CATL partially navigate around restrictions via US co-manufacturing partnerships (Ford BlueOval City, GM Ultium joint ventures).
**Canada**: followed the US/EU in October 2024, imposing 100% tariffs on Chinese EVs.
**India**: 100% tariffs on imported Chinese vehicles combined with foreign ownership restrictions create dual barriers for Chinese brands.
## Chinese Automakers’ Breakout Strategies
**Southeast Asia production**: Thailand (BYD, SAIC), Vietnam (VinFast pioneered, Chinese supply chain following), and Malaysia (Geely via Proton brand) serve as third-country production bases for EU export. But the EU is tightening rules of origin (requiring minimum proportions of battery core materials from non-Chinese sources).
**European factory construction**: BYD Hungary (2025), SAIC Spain (study phase), Chery Spain joint venture (with Ebro-EV). Local production circumvents tariffs but requires addressing higher labor costs and supply chain reconstruction.
**Technology licensing and joint ventures**: licensing core technologies (DM systems, blade batteries) to local partners to circumvent vehicle tariffs. BYD is in technology licensing negotiations with multiple European and Middle Eastern companies.
See [China NEV Industry Overview](https://sunqi.org/nev-china-overview-en/) and [EU Trade Commission investigation documents](https://trade.ec.europa.eu/).
