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Tesla, BMW Bypass Trump’s Trade War and Score a Win For China

Posted July 13, 2018

Under Economic Issues, International Trade Issues

(Angus Whitley & Enda Curran – Bloomberg)

Less than a week into President Donald Trump’s trade war with China, global automakers have shown there are ways to bypass the battle – and scoring a win for Beijing in the process.

Tesla Inc. and BMW AG are among the biggest potential losers from Beijing’s retaliatory tariffs on car imports from the U.S. because much of their production is centered in America. They’re now doubling down in China: this week, Tesla announced its first factory outside the U.S. while BMW is poised to become the first foreign manufacturer to own majority control of a Chinese automobile venture. Cars made locally by foreign brands will dodge import levies.

While those deals have taken months – if not longer – to come together, the investments by Munich-based BMW and Palo Alto, California-based Tesla back up Beijing’s claim to be continually opening up its economy and help rebut allegations of protectionism by the Trump administration. Click here to read more.