There is a shift in sentiment at the Guangzhou Auto Show; leading electric vehicle (EV) manufacturers are expressing newfound optimism fueled by the improving relations between China and the United States. Against the backdrop of the concluded APEC summit, where global leaders reaffirmed their commitments to trade cooperation and combatting climate change, EV companies are hopeful for a brighter future.
Gu Huinan, the General Manager of GAC Aion, shared insights on the positive developments. “As entrepreneurs, we are pleased to see China-US relations improve. The trade war, technology bottlenecks, and uncertainties in supply and market conditions have made the last few years very challenging. Currently, US rate hikes are affecting our economy. Our currency trading, property sector, and stock markets are also under pressure. If China and the US can work together, it’s amazing news because it will improve our economies and help us export globally.”
The sentiments echo many Chinese EV manufacturers’ challenges due to strained relations between the two economic giants. The uncertainty surrounding trade dynamics and technology transfers has hindered growth and global market penetration. However, recent developments have sparked hope for a more collaborative future.
Shen Ziyu, CEO of Polestar China, highlighted the existing barriers to exporting to the US. “Currently, there is a very high barrier in exporting to the US. Right now, foreign cars in the US market are mostly made in Japan and Korea. As a global brand, China is a priority for our investments because EV manufacturing, supply chain, and R&D resources are all here. Of course, we hope relations between China and the US will improve. Of course, we hope the world economy is steadily growing and thriving.”
The emphasis on a more open and cooperative relationship between the US and China is about economic benefits and addressing shared challenges, particularly in climate change. The commitment to combatting climate change expressed by world leaders at the APEC summit has further fueled the optimism within the EV industry, given its crucial role in achieving sustainable transportation solutions.
The Guangzhou Auto Show platform allows these leading EV brands to showcase their latest innovations and technologies. The renewed optimism among manufacturers signals potential benefits for their respective businesses and hints at a broader positive impact on the global EV market. As the world watches the evolving dynamics between China and the US, the automotive industry, particularly the EV sector, stands poised to benefit from increased collaboration and a more favorable trade environment.
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