BYD outsmart the European Unions massive anti-China EV tax

The Chinese built a 21,000+ KM wall surrounding them from Barbar attacks thousands of years ago, this was a cakewalk for them to figure out.

Don't forget about Uzbekistan. BYD started mass production of cars there two weeks ago. Uzbekistan has free trade agreements with the EU, similar to Turkey. The other thing to keep in mind here is that BYD is also looking build up consumer preference and infrastructure in developing countries. Kind of a bottom-up approach with more affordable vehicles, whereas most EV makers have initially concentrated on more expensive vehicles in wealthier markets. This has tended to lead them to become the dominant NEV brand in markets with growing car sales, whereas EU car sales are on a long decline and US has been roughly flat for decades.

BYD sets up factories in countries friendly with China. If taxes, sanctions, or bans stop these BYD factories from serving nearby countries, they'll just focus on the host country, benefiting both China and that country. Nowadays, countries are protecting their own interests, fair trade does not exist anymore. The EU forgets that China makes most of its car parts, so China might hit back with an export tax on those parts meaning EU made vehicles will become more expensive and china win’s again. China's has thought about this strategy prior, a wave of quality EV’s wasn’t a coincidence.

It is well known this free-trade-area between EU and Turkey. BYD just does take advantage of it!

Technically, Turkey is a special case. Turkey is in the European Customs Union, and has preferential agreements with the EU. I think there are similar preferential arrangements with the recently separated UK. Morocco has some trade agreements with the EU and these agreements cover automobiles subject to duty-free trade into the EU, but there are major differences with Turkey's situation. The main reason BYD invests in Morocco is natural resources because thats facility is a battery production factory! They have investments for car manufacturing in Hungary and this is part of their strategy to avoid customs duties. Turkish investment has benefits not only in the EU but also in Turkey and some additional countries!

This is common, and basically what the EU wanted, they want jobs and tech here. The tariffs are only until November anyways

I used to work for a USA company that had to make medical devices in China in order to avoid massive tariffs. We would make the machines in the USA and ship the parts to China for assembly so we could call it China made. This is not new, they are just copying our playbook. I think tariffs are terrible for European and USA consumers. We need to invite competition and out innovate if we don’t want to end up like Cuba.

BYD were being sold in Europe for more than twice their price in China even before the tax. They can afford it.

EU policy is working as intended. It's getting China to build more of their manufacturing in the EU's trade area. That means jobs and income staying in the EU.

How is this any different or worse than what China did to allow Européen or US brands to sell in China? Btw, they create jobs in the EU and neighbouring countries, leading Turkey and Morocco to become more prosperous and stable. It’s a win-win.

Audi have been manufacturing cars in Hungary for years, in Györ. So it’s smart to build a factory in Szeged, Hungary.

Dont think this is about the EU. BYD says this proposed factory will produce 150K cars a year. Turkey sells nearly a million cars a year with a population of 90m, add to this 5 or 6 surrounding smaller countries around her. 150K cars a year factory probably will be serving this region alone.

Win-win situaton for both China and Europe.

So BYD hasn't out-smarted the EU, they're going to do what the EU wants which is to manufacture in the EU and employ EU workers.

What BYD have not bargained on is political choices of EU consumers, who may not want to indirectly fund PRC government activities in Taiwan and elsewhere. And that's assuming that EU will not impose sanctions on Chinese-owned companies in future..

BYD is doing nothing new or unexpected Europe welcomes any investment a Chinese company might want to make. And unlike China they dont require that foreign companies are 50% locally owned

if Europe is going to be missing out on tax revenue as a result of these workarounds .. guaranteed they will implement other tax schemes.

The tariff is probably just to please the US. But what EU really want is to have the factory in Europe. Not sure Morocco, Turkey and Hungary are where they expected.

It won't make much difference, if the EU determines that products coming from Turkey are being subsidised to the point of dumping then tariffs will be applied. Why? Because part of the agreement Turkey has with the EU as a part of the free trade agreement is that Turkey won't allow dumping into the EU. This isn't "one magic trick that the EU hates and doesn't want you to find out about".

BYD and other Chinese companies in any industries put up factories and have them up and running extremely quickly. We could have gotten car manufacturing back in Australia, but both state and federal governments stuffed around BYD. Turkey has their own car brand TOGG and one of the Fords I rented about a decade ago in the UK was actually made in Turkey.