Trade barriers slow Chinese advances in the US, says GWM executive

GWM President Jack Wey said major North American automakers rely on trade protections to compete with Chinese manufacturers. The statement was made during Salão of Automóvel of Pequim, where the executive analyzed the global strategy of Asian brands. Segundo Wey, without customs tariffs and bureaucratic restrictions, the three largest US manufacturers would not be able to withstand Chinese competition.

The executive highlighted that massive taxes and administrative requirements act as shields against the advance of manufacturers in the Asian country. The combination of these mechanisms makes it practically unfeasible to sell Chinese vehicles on the American market, creating an unattractive scenario for investors in the sector.

Proteção Estados Unidos tariff against Chinese imports

Os Estados Unidos applies a 25% tax on Chinese pickup trucks, a percentage that jumped to 50% after the recent tariff war. Essa tax rate makes the sale of Chinese cars practically impossible in the American market. Canadá adopted a similar stance, with its own restrictive measures that make it difficult for Asian brands to enter.

Além of taxation, there are significant bureaucratic obstacles. Homologar an engine in the USA takes an average of three years — enough time to make any attempt at expansion unfeasible. Europa also protects itself, but with a different approach, applying taxes between 23% and 30% depending on the country. No México, the barriers are softer, allowing greater permeability to Chinese imports.

Brasil as a priority target for Chinese expansion

Diante of restrictions in developed markets, Chinese industry turns its eyes to emerging economies. Brasil positions itself as a strategic destination for GWM and other Asian manufacturers. The country offers a robust domestic market combined with incentives for local production, unlike the US’s protectionist approach.

GWM already maintains a plant in Iracemápolis, São Paulo, and is preparing the construction of a second plant in Aracruz, Espírito Santo. Wey explained that having local production is essential for brands to remain on Brasil. Importar cars do not guarantee long-term competitiveness. The solution involves creating a national supply chain, expanding the base of parts manufactured in the country and developing market expertise.

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Movimento coordinated from Chinese manufacturers on Brasil

GWM is not the only one betting on Brasil. Outras Chinese brands accelerate the installation of factories in the country, demonstrating a coordinated movement towards the Brazilian industrial base:

• BYD operates factory at Camaçari, Bahia
• GAC partnered with HPE Motors on Catalão, Goiás
• Leapmotor will assemble cars at Stellantis’s unit in Goiana, Pernambuco
• Geely acquired stake in São José factory from Pinhais, Paraná
• Omoda & Jaecoo will take over installation of Jaguar Land Rover on Itatiaia, Rio from Janeiro

Esse scenario shows the intensity of Chinese investment in the Brazilian market. Cada manufacturer chose strategic regions to maximize economic impact and generate local jobs. The strategy aims to create deep roots in the Brazilian economy, ensuring long-term permanence.

Chinese Sobrecapacidade and global protectionism

China has more than 100 automotive brands and installed capacity to produce 55 million vehicles annually. The domestic market absorbs approximately 35 million units, leaving around 20 million cars without destination. Essa overcapacity forces manufacturers to aggressively seek foreign markets, putting pressure on the global industry.

Brasil chose a different path from the USA — it did not close its doors, but demanded compensation. In exchange for market access, Chinese manufacturers need to build factories, create jobs and strengthen the local supply chain. It is a strategy that attracts investment without handing over the entire market to imports, balancing trade openness with protection of national industry.