tradewar
Latest
Tesla wins a tax exemption in China to offset trade-war tariffs (updated)
The regulatory body in charge of cars in China has announced several Tesla vehicles will be exempt from its purchase tax, which should help offset an upcoming tariff. The Ministry of Industry and Information Technology granted exemptions for more than a dozen Model 3, Model S and Model X models.
Tesla will reportedly raise prices in China again this week
Buying a Tesla in China could be more expensive in the very near future. The automaker will increase prices on its cars in the country this Friday, according to Reuters. That potential price lift is said to be in response to the yuan weakening against the US dollar, but Tesla may jack up the sticker price once again should new tariffs come into effect as part of the China-US trade war.
US delays tariffs on some Chinese-made electronics until December 15th
The Trump administration announced a tariff earlier this month on an additional $300 billion of Chinese imports that was to take effect from September 1st, but the 10 percent levy will only kick in then for about half of the goods. The tariff on others -- including mobile phones, laptops, monitors, game consoles, some toys and LED lamps -- is set to be enforced from December 15th.
Trump announces more tariffs on goods made in China
The US plans to add more tariffs to Chinese imports starting September 1st. President Donald Trump made the announcement on Twitter, stating the nation would impose a 10 percent tariff on $300 billion worth of Chinese goods, in addition to an existing 25 percent tariff on $250 billion of imported items. He said the tariff would be enforced after China didn't meet a promise to buy more American agricultural goods. He also claimed China, despite saying it would, failed to stop fentanyl sales to the US.
Chinese tech at CES: Politics is temporary, business is permanent
At the start of 2018, the US imposed a series of tariffs on Chinese products ranging from solar cells through to home appliances. It was the escalation of rhetoric between the two countries over fears that the US-China trade deficit had become too high. According to US Census Bureau statistics for 2018, the US bought $447 billion worth of Chinese goods, but only $102.4 billion went the opposite way. An additional $200 billion tariff package targeting the technology industry was due to be levied on January 1st, 2019.
Chinese draft law would prevent forced technology transfers
China might be prepared to further cool the US trade war. Legislators have submitted a draft law that would ban forced technology transfers, one of the objections that prompted the Trump administration to slap tariffs on China in the first place. The proposed measure instead "encourages" voluntary transfers. It would also have a "negative list" that would treat anything outside of that list as if it were a domestic investment, lifting some of the legal burden on foreign companies.
Tesla’s proposed Chinese factory would crank out 500,000 cars a year (updated)
That didn't take long: Days after Tesla raised prices to offset import tariffs in China, the company has announced it has reached an agreement with the government in Shanghai to produce vehicles in the region. According to Bloomberg, it'll rival production of Tesla's sole factory in the US, with capacity to build 500,000 cars per year. It apparently won't be the only plant revealed in 2018, as the company teased that details for a European production facility would be discussed later this year.
Tesla raised its prices in China to offset US trade war tariffs
Just when it looked like China was going to be Tesla's boon, the US's trade war changed all that. Over the weekend, Tesla raised the price of the Model S and Model X by around 20 percent to compensate, according to stock-investing publication Seeking Alpha. In terms of hard figures, that means it'll cost around $22,000 and $37,000 more to buy one of Elon Musk's EVs in the region, depending on configuration. This massive setback comes mere months after China eased restrictions on foreign automakers.
Harleys sold in the US will still be built in the US
This morning I rode an electric motorcycle to work. It was quiet, clean, quick (lane-splitting FTW), and in San Francisco's increasingly horrid traffic, it was more enjoyable than sitting in a car staring at the license plate in front of me for 30 minutes while moving only three blocks.
ZTE faces bleak future after US ban prevents it from making phones
ZTE's future is increasingly murky after the company's main business ground to a halt. The Chinese firm is unable to make its smartphones after the US blocked it from working with American suppliers, most notably Qualcomm. ZTE has appealed the seven-year export ban, which the US government revived last month.
Trump's Chinese tariffs could have a big impact on the tech industry
Trump has shouted about weaponizing trade since the campaign trail, but this year he's put it to action, committing to solar tariffs back in January that endangered US jobs. This afternoon, Donald Trump signed an executive memorandum to enact tariffs on up to $60 billion worth of imports from China, including products in the tech sector. It is "the first of many" actions, Trump reportedly said as he signed it. China immediately fired back by claiming it would retaliate and "defend its legitimate rights and interests" if the US imposes those restrictions, according to a Ministry of Commerce statement.
