Huang Yejing, a research professor at the Institute of Global Economics at the Shanghai Academy of Social Sciences, quoted Huang Yejing, a research professor at the Shanghai Academy of Social Sciences. Everything Tesla imports in Giga 3 will be free on the Chinese side. But Huang also said that the trade war between the United States and China is continuing, and the latest wave is that China imposes $75 billion in new tariffs on U.S. products, including cars. BMW is another relatively small automaker that is hit by China`s new tariffs. BMW seems to have developed its manufacturing strategy for a free (or freer) commercial world. The company builds German sedans and SUVs in America. Vehicles cross each other over the sea. Imports and net exports are low, but with new tariffs, the impact will be considerable.
Tesla`s new Chinese plant will benefit from the expansion of the Shanghai Free Trade Area. Xinhua/ via Getty Images My question then seemed to stumble upon an answer, thanks to the cover of another Teslarati writer on the extension of the Shanghai Free Trade Area (FTZ) to Lingang, the area where Tesla`s last buzzing factory is located. (Thanks, Simon!) As part of ongoing efforts to open the country`s markets to economic globalization, Shanghai and Lingang are expected to establish a free market area similar to that of Hong Kong. Most goods entering the FTZ are tax-exempt. China`s concession to one of The most well-known U.S. companies is amid heightened uncertainty about the destination of the trade war between the two countries. A week ago, President Donald Trump ordered U.S. companies to immediately look for alternatives to China to later suggest that tensions had eased. A Ford spokeswoman commented: „Ford is the largest exporter of vehicles that have been assembled in the United States, and we are only a net exporter to China. We encourage the United States and China to find a short-term solution to the remaining issues by continuing negotiations. These two important economies must work together to promote balanced and fair trade. Tesla currently imports all the cars it sells in China, but plans to build the Model 3, its best-selling vehicle, in the new factory from the end of this year.
The company raised prices in China on Friday as trade tensions weighed on the country`s currency. China is currently experimenting with a dozen free trade zones along its coasts. If successful, these special economic zones are likely to replace Hong Kong, which was once the country`s only free trade port to serve as a point of contact between mainland China and the rest of the world, but which is now being fought by an escalation of local political activism. However, as the trade war gets even worse, Tesla may be able to calculate the impact on tariffs through a new development in China`s domestic policy. But it is difficult to say that trade issues have not weighed on the global economy. Chinese car sales, for example, increased throughout the year, before the july 2018 rate announcement. Now they are falling by about 10%. The much bigger trade problem for U.S. automakers is the renegotiation of Nafta or the North American free trade agreement.