China’s highflying EV industry is going global. Why that has Tesla and other carmakers worried

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A flood of cheap Chinese electric car exports has raised the specter of another trade war with the U.S. And it has Tesla worried.

The U.S.-China rivalry has a new flashpoint in the battle for technology supremacy: electric cars. So far, the U.S. is losing. Last year, China became the world’s foremost auto exporter, according to the China Passenger Car Assn., surpassing Japan with more than 5 million sales overseas. New energy vehicles accounted for about 25% of those exports, and more than half of those were created by Chinese brands, a shift from the traditional assembly role China has played for foreign automakers.

market, the fear that the cheaper models could eventually undermine American automakers has started to spread. The Alliance of American Manufacturing warned in a February report that allowing Chinese EVs into the country would be an “extinction-level event” for the U.S. auto industry. The group also cited the risks of Chinese auto companies building facilities across the border in Mexico that could circumvent tariffs. After a trip to China in April, Treasury Secretary Janet L.

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