But is America likely to show reciprocal good will?
Both Bloomberg and the Wall Street Journal have reported that China is mulling a relaxation of rules (in some parts of the country, at least) that currently require foreign automakers to partner with a domestic firm to build electric cars in the country. The move, thought by sources to be spurred by President Trump’s recent decision to investigate China’s trade practices, would make it far easier for manufacturers to set up shop in the world’s largest electric-car market. Last year, 352,000 new electric vehicles were registered in China, compared to just 159,000 in the U.S.
The move wouldn’t be a universal green light for Western automakers. It’s thought that cars sold in China by firms setting up shop independently would still attract a 25 percent import tax. That would leave their vehicles expensive compared with local alternatives. But even small gains may appeal to firms like Tesla, whose vehicles are in demand among wealthy Chinese buyers. Indeed, Elon Musk’s company is widely believed to desire its own factory in China.
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