Latest news with #China-built
Time of India
10 hours ago
- Automotive
- Time of India
China floods Brazil with cheap EVs triggering backlash
The world's largest car-carrying ship, with the equivalent of 20 football fields of vehicles - completed its maiden journey late last month to dock in Brazil 's Itajai port. But not everyone is cheering its arrival. BYD , China 's top producer of electric and plug-in hybrid vehicles, is offering Brazilian car shoppers relatively low-priced options in a market where the green-car movement is still in its infancy. Brazilian auto-industry officials and labor leaders worry that the vast influx of cars from BYD and other Chinese automakers will set back domestic auto production and hurt jobs. BYD has deployed a growing fleet of cargo ships to accelerate its expansion overseas, with Brazil becoming its top target, according to Reuters analysis of shipping data and company statements. The late-May shipment was the fourth of the Chinese carmaker's ships to dock in Brazil this year, totaling around 22,000 vehicles, according to Reuters calculations. BYD, the world's top producer of electric and plug-in hybrid cars, is the largest among several Chinese brands targeting Brazil for growth. China-built vehicle imports are expected to grow nearly 40 per cent this year, to about 200,000, according to Brazil's main auto association. That would account for roughly 8 per cent of total light-vehicle registrations. Industry and labor groups say China is taking advantage of Brazil's temporarily low tariff barriers to ramp up its exports rather than investing to build Brazilian factories and create jobs. They are lobbying Brazil's government to accelerate by a year a plan to increase Brazil's tariff on all EV imports to 35 per cent from 10 per cent, rather than gradually phasing in higher levies. "Countries around the world started closing their doors to the Chinese, but Brazil didn't," said Aroaldo da Silva, a Mercedes-Benz production worker and president of IndustriALL Brasil, a confederation of unions across six industrial sectors. "China made use of that." BYD did not respond to a request for comment on the industry's concerns. SURPLUS CARS Brazil has emerged as a flashpoint in the China auto industry's torrid global expansion. A growing surplus of new cars being pumped out of Chinese factories has led to an export boom over the past five years, helping China pass Japan in 2023 to become the world's top vehicle exporter. Much of this excess is being shipped overseas, to markets like Europe, Southeast Asia and Latin America. Brazil offers an enticing destination due to its large market - it is the sixth-largest car market by volume - where established players including Volkswagen , General Motors and Jeep-maker Stellantis have been building cars domestically for decades. The Brazilian government has set policies aimed at growing sales of electric and plug-in hybrid cars, BYD's specialty. Meanwhile, BYD's path for growth elsewhere has narrowed, both domestically and overseas. At home, the company is mired in a bruising price war that has seen it slash the price of its entry-level Seagull to below $10,000, squeezing profit margins. Abroad, governments have erected stiff trade barriers for Chinese cars, including a 45.3 per cent duty in Europe and a tariff of more than 100 per cent in the United States, along with a ban on Chinese software in cars. For years, Brazilian officials have taken steps to protect the market from unfettered access by Chinese car companies. But it has been slower to react and less aggressive than other nations. In 2015, Brazil eliminated tariffs on manufacturers like BYD to spur electric vehicle adoption, but last year it reintroduced a 10 per cent tariff on electric cars to encourage investment in the domestic auto industry. The tariff is scheduled to increase every six months before hitting 35 per cent in 2026. Brazil's Ministry of Development, Industry & Foreign Trade told Reuters that a request by Brazil's auto association, ANFAVEA, and others to pull forward the higher tariff was under review. "The schedule for the gradual resumption of tariffs, with decreasing quotas, was established to allow companies to continue with their development plans and respect the maturity of manufacturing in the country," a ministry spokesperson added. BYD and other Chinese companies also are taking advantage of a policy in Brazil that allows them to import toll-free up to $169 million for plug-in hybrids imported by July 2025 and $226 million for battery-electric cars. That incentivizes front loading of vehicle shipments to fully benefit from the toll-free quotas before they expire, analysts said. 'EXCESS OF IMPORTS' BYD's export strategy hinges on the carmaker being able to continue growing shipments without triggering resistance from local authorities. But industry representatives in Brazil have grown increasingly worried that BYD's plans to begin domestic vehicle production are being pushed off. In 2023, government officials cheered BYD's plan to purchase a former Ford plant in the state of Bahia, viewing it as a way to create manufacturing jobs and spur the country's green transition. But an investigation into labor abuses on the construction site pushed back its timeline for "fully functional" production to December 2026, local officials said in May. Another Chinese automaker, GWM, also delayed by more than a year its plan to start making cars at a former Mercedes-Benz plant. The Brazilian government expects the plant to begin operating this year. "We support the arrival of new brands in Brazil to produce, promote the components sector, create jobs and bring new technologies," Igor Calvet , president of ANFAVEA, told Reuters. "But from the moment that an excess of imports causes lower investment in production in Brazil, that worries us." Da Silva of IndustriALL said his confederation of unions had not heard of any local supplier relationships being developed or contracts being signed for the BYD plant, as would normally be expected 18 months from the start of production. "Even if the factory is here - what value is it really adding if the components, development, and technology is all from abroad?" da Silva said. BYD did not respond to a request for comment on its supplier network. President Lula da Silva 's left-wing Workers Party government is scrambling to protect jobs and the environment as it aims to both revive Brazil's industrial economy and restore its green credentials ahead of hosting the COP30 global climate summit this November. Still, the country's nascent green-car movement leans on Chinese imports, which account for more than 80 per cent of Brazil's electric-car sales, according to Brazil's EV association, ABVE. The country has abundant mineral resources including lithium and other key ingredients to make EV batteries. But the infrastructure to produce all the necessary components for electric cars does not exist yet, said Ricardo Bastos , director of government relations at GWM Brazil and president of ABVE. GWM, which bought a factory in Brazil in 2021 with capacity for 50,000 cars a year and is due to start producing its Haval H6 SUV there this July, is in talks with around 100 Brazil-based suppliers on setting up contracts, Bastos told Reuters. "This year, imported cars will coexist alongside cars produced in Brazil," Bastos said.
New Straits Times
12 hours ago
- Business
- New Straits Times
EU bars Chinese firms from most medical device tenders
BRUSSELS: The European Union will bar Chinese companies from participating in EU public tenders for medical devices worth €60 billion or more (US$68.90 billion) per year after concluding that EU companies are not given fair access in China. The measure announced by the European Commission on Friday is the first under the EU's International Procurement Instrument, which entered into force in 2022 and is designed to ensure reciprocal market access. The new restrictions are likely to increase tensions with Beijing, already inflamed by EU tariffs on China-built electric vehicles, Chinese measures against EU brandy, and curbs on exports of rare earths that the EU wants resolved by an EU-China summit in July. The Commission said on Friday that it would exclude Chinese companies from EU government purchases above €5 million. An EU official said, guided by figures from Medtech Europe, the EU medical technology market was worth some €150 billion in 2023, with public procurement accounting for a 70 per cent share. Contracts of over €5 million were only four per cent of tenders, but made up some 60 per cent by value, the official said. Successful bids will have to ensure they include no more than 50 per cent of medical devices from China. If there are no alternative suppliers, the exclusion will not apply. EU members backed the plan earlier this month. The Commission has previously said it found "clear evidence" that China favoured Chinese devices for hospitals and that its tender conditions led to abnormally low bids that profit-oriented companies could not offer. A Commission official said the ban would cover medical equipment including imaging equipment, artificial body parts and medical clothing. China's commerce ministry has previously described the proposed EU measures as "protectionist", urging the EU to be fair and transparent and for both sides to resolve differences through cooperation and dialogue. The Commission said China had not proposed any corrective action to remedy the situation, but an agreement was still possible.
Time of India
12 hours ago
- Business
- Time of India
EU bars Chinese firms from most medical device tenders
The European Union will bar Chinese companies from participating in EU public tenders for medical devices worth 60 billion euros or more ($68.9 billion) per year after concluding that EU companies are not given fair access in China. The measure announced by the European Commission on Friday is the first under the EU's International Procurement Instrument , which entered into force in 2022 and is designed to ensure reciprocal market access. The new restrictions are likely to increase tensions with Beijing inflamed by EU tariffs on China-built electric vehicles, Chinese measures against EU brandy and curbs on exports of rare earths that the EU wants resolved by an EU-China summit in July. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Air conditioners without external unit. (click to see prices) Air Condition | Search Ads Search Now The Commission said on Friday that it would exclude Chinese companies from EU government purchases above five million euros. An EU official said, guided by figures of Medtech Europe, the EU medical technology market was worth some 150 billion euros in 2023, with public procurement accounting for a 70% share. Contracts of over 5 million euros were only 4% of tenders, but made up some 60% by value, the official said. Live Events Successful bids will have to ensure they include no more than 50% of medical devices from China. If there are no alternative suppliers, the exclusion will not apply. EU members backed the plan earlier this month. The Commission has previously said it found "clear evidence" that China favoured Chinese devices for hospitals and its tender conditions led to abnormally low bids that profit-oriented companies could not offer. A Commission official said the ban would cover medical equipment including imaging equipment, artificial body parts and medical clothing. China's commerce ministry has previously described the proposed EU measures as "protectionist", urging the EU to be fair and transparent and for both sides to resolve differences through cooperation and dialogue. The Commission said China had not proposed any corrective action to remedy the situation, but an agreement was still possible.
CNBC
3 days ago
- Business
- CNBC
'Not realistic' for industry to operate without China-built ships: Mitsui O.S.K. Lines CEO
Mitsui O.S.K. Lines President & CEO Takeshi Hashimoto joins CNBC's JP Ong at the Energy Asia conference to discuss how the United States' proposed policies against China-built vessels will impact the industry.
Yahoo
10-06-2025
- Business
- Yahoo
China's maritime lead a security threat, say ‘Zero Point Four' authors
A significant decline in the number of U.S.-flagged vessels and the collapse of domestic shipbuilding have created vulnerabilities in national security, say two of the co-authors of 'Zero Point Four: How U.S. Leadership in Maritime Will Secure America's Future.' James Watson and Carleen Lyden Walker said the U.S. maritime industry is at a critical moment. U.S.-flagged ships have declined to a 0.4% (200 ships) of the estimated 55,000 oceangoing vessels serving the global supply chain. 'We have lost our [maritime] leadership as a nation and we can recapture that if we decide to recognize the incredible impact of maritime security on national security, economic, energy, and food, climate and workforce,' Walker told FreightWaves in an interview. Watson and Walker said the U.S. has become so dependent on foreign-manufactured ships that it has created vulnerability in supply chains and risks shortages in military maritime than 90% of the world's goods and energy travel by ship, and most people don't understand the U.S. dependency on the maritime industry, the authors said. 'The big part of why we wrote the book … is all the opportunities that actually do exist for investments by Americans into American ships, but also industries that involve the oceans, that involve what we call the fourth industrial revolution, the use of AI, the use of the developments in science and technology that ought to be opportunities for America to basically leapfrog China,' Watson said. Watson is a retired Rear Adm. in the U.S. Coast Guard and is currently an independent consultant providing business development services to maritime clients. Walker is co-founder and managing partner of the Maritime Accelerator for Resilience and co-founder and CEO of the North American Marine Environment Protection Association.'Zero Point Four' was published in March 2024. In addition to Watson and Walker, the book was co-authored by global supply chain specialist Jonathan Kempe; technology and sustainability economist Nishan Degnarain; enterprise resilience veteran Rich Mason; and Anuj Chopra, managing director of the MaritimESG Middle East Project Management LLC. While the trade war between China and the United States appears to be cooling off in recent weeks, the nation's push to revitalize the nation's shipbuilding industry is gaining momentum. In February, the White House proposed port fees for China-built, -owned and -operated ships docking at American ports. The fees aim to minimize China's maritime dominance and help kick-start U.S. shipbuilding. The initial proposal called for vessels operated by Chinese companies to pay a $1 million port call fees and ships built in China would have to pay a $1.5 million fee per port call. The proposal now calls for fees based on net tonnage and number of containers carried. The Office of the U.S. Trade Representative also recently announced exemptions from the fees for ships carrying liquified natural gas. The USTR is accepting comments through July 7 from the maritime community on the impact of port fees associated with Chinese ships. New fees proposed by the USTR are set to take effect on Oct. 14. President Donald Trump also signed an executive order on April 9 that aims to boost the U.S. international maritime presence, which has been in decline for decades. On April 20, a bipartisan bill — the Shipbuilding and Harbor Infrastructure for Prosperity and Security for America Act of 2025 (the SHIPS Act) — was introduced in Congress with the aim of expanding the U.S.-flag international fleet by 250 ships in 10 years, while enhancing U.S. competitiveness and making more investments in the maritime workforce.A predecessor bill, the SHIPS for America Act of 2024, garnered bipartisan support last year during the Biden administration. Walker said placing fees on Chinese-built ships might ultimately hurt American consumers instead of creating more domestic ship production in the U.S. 'Passing the cost of our deficiency on to the consumer, which is what will happen with these taxes, if you will, on Chinese-built ships, I don't know how viable that is,' Walker said. 'It's like tariffs: The ultimate payor is going to be the American consumer.' Walker said a more viable proposal could be a tariff hike on U.S.-flagged ships doing repair work in shipyards in China. The tariff could be an impetus for U.S. ships to be repaired in domestic shipyards. U.S. officials floated the idea of imposing a 200% duty for work carried out on many U.S.-flag ships at yards in 'countries of concern,' according to the SHIPS Act. 'I think that one of the possibilities is restricting U.S.-flagged Jones Act ships from doing ship repair in China, which they do, and that could be a first step,' Walker said. Of 80,000 U.S. port calls each year, only a very small percentage are currently by U.S.-registered ships. '[The U.S.] intentionally walked away from its shipbuilding capability in the 1980s … and to blame China for recognizing an opportunity and capitalizing on it, I think is the wrong cast,' Walker said. 'I would rather see us say, 'Well, look, China in the early 1990s is when they decided to become a shipbuilding nation.' In the last 35 years, they have become the dominant shipbuilding nation with about 60% of the order book. How they got there also needs to be recognized.' Watson said for various reasons — including cost and efficiency — many companies in the U.S. in the 1970s and 1980s decided to outsource shipbuilding to countries such as Japan and South Korea initially. 'I think what happened was they just said, 'Well, we can just sacrifice that industry and we can buy ships from Korea and Japan, because they're building fine ships over there, and use our open registries to help the world globalize even more and focus on military shipbuilding,' Watson said. 'Then the Cold War ended and we looked around and took our peace dividend, balanced the budget again, and realized we didn't have a commercial shipbuilding industry anymore. So we just stuck … with the plan to buy ships from Japan and Korea, and then I think China saw the opportunity.' Walker and Watson said maritime security not only impacts national security, it impacts energy security, environmental security, economic security and workforce development. 'We think we can lead the world, but we probably shouldn't basically give away our designs and our technology to the cheapest place in the world to build,' Watson said. 'I guess just going to my position on the USTR thing … some of the things that they're doing probably have a time and a place and maybe now is the time and the place to do it.' Watson said it's critical that the government produce programs to restore the maritime industry in the U.S. 'You've got to have a program that creates investment here,' Watson said. 'If you look at the CHIPS Act, for example, where you actually have an act of Congress instead of effectively an executive decision of an agency, then you can put in some provisions that are bankable. You can have companies invest in a legislative initiative with a lot more security that it won't flip in four years compared to an executive mandate, like a tariff or a penalty on Chinese shipping.' The ultimate goal the U.S. government should be looking for is bringing in more mariners and reinvigorating the country's industrial shipbuilding complex, Watson and Walker said. 'It's the ships that come first,' Watson said. 'Then that causes an interest in terminals and shipyards and everything else. So there's been a lot of talk about … 'We've got to be more involved in the Panama Canal, we've got to stop [China's] Belt and Road Initiative.' If we just had a robust marine industry, a ship-operating industry, if we had merchant mariners, if we had the lead on marine technology, we would naturally want to own the terminals and the ships and have stakeholdings in great shipyards to service our ships.' The post China's maritime lead a security threat, say 'Zero Point Four' authors appeared first on FreightWaves.
