In China, tariffs on electric vehicles by the United States are not considered mere trade restrictions but a direct challenge to the country’s growing dominance in the global EV market. Far from dwelling on short-term disruptions, these tariffs are framed as catalysts for strategic shifts-igniting a new era of self-reliance, technological innovation, and market expansion. New regions beyond the US are now part of China’s EV strategy.
Southeast Asia, the Middle East, and parts of Africa now present more favourable opportunities, with fewer regulatory hurdles and growing demand. The tightening of tariffs by the West has only pushed China further into these regions. Chinese data shows that BYD’s market share in Singapore reached 14.4 per cent of all new car registrations in 2024, marking a historic achievement for a Chinese brand.
EVs are central to China’s long-term economic, technological, and environmental leadership vision. The strategy focuses on bolstering domestic innovation, ramping up investment in battery technology, and shifting toward regions with fewer trade barriers. For China, Western tariffs present an opportunity to refine policies, enhance industrial competitiveness, and reduce reliance on foreign markets.
It seems China’s push to accelerate its EV sector is unrelenting. The upcoming China EV 100 Forum (28-30 March) in Beijing, featuring key players from China’s EV and tech giants, underscores this drive. As one Chinese vlogger observed, the goal is clear: China wants to foster scientific and technological innovation that will elevate its global standing and position it as a leader in the automotive industry.
Self-reliance and dominance
A major theme in Chinese discourse is the push for greater self-reliance in EV technology. In response to the imposition of Western tariffs, China has redoubled efforts to develop homegrown solutions that will succeed both domestically and globally. According to Zhang Jianping, Co-Chairman and Chief Scientist at Aodong New Energy, “2025 marks the start of full integration for China’s new energy vehicles with [vehicle-station-network-storage] interaction. Energy storage is essential, with battery swap stations bridging the pillars and ensuring a balanced, dynamic system.”
China’s technological edge is clear—it controls over 70 per cent of global power battery production, with Contemporary Amperex Technology (CATL) outspending the top 10 European automakers on R&D. While Europe struggles with charging infrastructure, China has built the world’s largest network of 4.8 million stations. Weibo posts celebrate the rapid growth of Chinese EV brands, such as BYD and Polestar, with sales up 94 per cent and 84 per cent, while European brands like Volvo and Shanghai Automotive Industry Corporation’s (SAIC) MG saw drops of up to 67 per cent. Several Weibo posts also highlight that BYD surpassed Tesla’s revenue in 2024, signalling China’s rising dominance.
This dominance is already evident in domestic trends. According to a report by national television broadcaster China Central Television (CCTV), from 1 January-18 March 2025, 2.044 million cars in China were traded for electric bicycles, generating 5.61 billion yuan. Over 2 million consumers benefitted from subsidies exceeding 1.2 billion yuan, while 50,000 small businesses participated, with average sales per store reaching 107,000 yuan. With control over the entire supply chain—from lithium mining to battery production—China is solidifying its position.
Also read: China leads semiconductor race despite US sanctions. Still relying on foreign tech though
Expanding beyond Western markets
While China has long sought to diversify away from Western markets, US trade policies, particularly under President Donald Trump.
However, the shift toward these emerging markets does not come without challenges. Despite the fewer regulatory hurdles, China must navigate issues such as supply chain vulnerabilities and potential competition from local manufacturers. Additionally, there are concerns regarding continuous technological innovation, as rivals from Europe and the US intensify their efforts to catch up with China’s lead.
Despite these obstacles, the drive to expand remains unyielding. Wei Hang, Chair Professor at Shanghai University of Finance and Economics, noted that China’s EV development has fostered world-leading lithium battery giants like CATL, BYD, and AVIC Lithium, securing its lead in the global EV supply chain. To succeed in the fiercely competitive market, Hang suggested, Chinese manufacturers must strengthen supply chains, adopt intelligent technologies, and create a seamless smart ecosystem—keys to overcoming the price war and ensuring long-term competitiveness.
Within China, the prevailing narrative is clear: Tariffs are not roadblocks but opportunities for dominance. The country is not merely weathering external pressures; it is harnessing them to further consolidate its position as the global leader in the EV sector. This regional pivot is part of a broader, calculated effort to reshape global power dynamics, with the EV industry serving as a key lever in China’s ambition to dominate not just the technological sphere, but also the geopolitical landscape. The next decade is crucial in revealing whether this ambitious strategy will pay off, or if rising competition and unforeseen challenges will alter the course of China’s EV revolution.
Sana Hashmi is a fellow at the Taiwan-Asia Exchange Foundations. She tweets @sanahashmi1. Views are personal.
(Edited by Ratan Priya)
BYD is running rings around Tesla for sure. When I think of China, the image that forms is of the Niagara Falls.