Beijing’s Quest for Global Dominance: Establishing Electric Vehicle Factories in Africa

September 13, 2024 TruthUSA

JOHANNESBURG—China has begun constructing factories in Africa to produce electric vehicles, a move that analysts believe will flood the global market with affordable EVs and give Chinese companies a dominant position in the automobile industry for years to come.

Chinese automakers, benefiting from substantial subsidies under the communist regime, have significantly increased production and are able to undercut prices of EVs produced elsewhere, including in the United States.

Reports indicate that China has provided at least $231 billion in state aid to its EV manufacturers over a 15-year period ending in 2023.

Since 2008, mainland China has had the largest automobile production sector globally in terms of units, according to JATO Dynamics, a leader in automotive data and analysis.

Chinese automakers now manufacture more than half of the world’s EVs, as reported by the International Energy Agency (IEA).

Chinese-built EVs currently face a 100% tax when sold in the United States, limiting their market reach to some extent.

A growing trend in China’s exports of EVs has raised concerns about overcapacity and unfair trade practices, prompting responses from the U.S. and the European Union to increase tariffs on Chinese-made EVs.

Tariffs on Chinese EVs are seen as protective measures aimed at safeguarding American and European manufacturers from unfair competition.

China’s push into Africa for EV manufacturing is seen as a strategic move to offset potential losses from Western trade restrictions.

Chinese automakers are expected to expand into African markets traditionally dominated by Japanese, American, and European brands.

Recent reports from JATO Dynamics highlight China’s emergence as the world’s largest auto exporter, replacing Japan and signaling its growing presence in international markets.

As global demand for EVs increases, China’s investments in Africa are aimed at securing access to essential minerals and metals required for EV and battery production.

Africa’s rich mineral resources play a key role in China’s plans to maintain its dominance in the EV industry.

China’s goal is to establish itself as a major player in the African EV market, leveraging partnerships with local governments to create jobs and produce affordable, clean energy vehicles.

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