Chinese EV CEO calls for 'cooperation' amid political tension in U.S.
The executive cited Tesla's success in China as a lesson in "understanding."
Imports of electric vehicles from China are one of the hottest topics on Capitol Hill at the moment, as politicians from both sides of the aisle are calling from some sort of action against firms like BYD (BYDDY) and NIO (NIO) to protect the domestic automotive industry.
However, the CEO of a major Chinese EV automaker recently suggested in recent remarks that "cooperation" and "openness" will help protectionist governments like that in the U.S. and the European Union and boost their respective auto markets.
Related: Tesla hit with 'unexpected delay' for delivery of newest model
Speaking at an event at Harvard University on April 13, NIO (NIO) CEO William Li called for cooperation in a more divided world, as EVs made by firms like the one he runs face roadblocks upon entering markets beyond China.
"Seeking Resonance and Echoing Friendship - That was the pursuit of the ancient Chinese," Li said at the Harvard College China Forum.
"Today, we must admit that the world is more divided than ten years ago, and it becomes more and more difficult to bridge differences. However, we can make choices and take actions to build connections, improve communication, and foster understanding."
The CEO said that his position as a startup in his native China meant that he had to compete with the international automotive big dogs. As a result, he doesn't see China making any similar policies to the protective measures that the U.S. is upholding.
"We do not expect China to adopt policies to protect domestic players. Because we also see the other side of the coin, where openness will ultimately benefit industries and sustainability, and make the best companies even better," he said.
Li used the example of Tesla's presence and sales success in China, noting that Elon Musk's company helped make EVs cool in the country — prompting domestic automakers like BYD and NIO to pull themselves up by the bootstraps and compete for their survival and success.
"Tesla has a Gigafactory in Shanghai, and in the last three years, it sold more than 1.36 million cars in China. Model Y was the best-selling model last year. The Shanghai factory and the Chinese market are very important to Tesla's success," the NIO CEO said.
"In the meantime, Tesla's presence has influenced consumers, boosted EV penetration, and even energized the automotive industry in China."
More Business of EVs:
- A full list of EVs and hybrids that qualify for federal tax credits
- Here’s why EV experts are flaming Joe Biden’s car policy
- The EV industry is facing an unusual new problem
William Li's speech comes at the heels of some the most 'tough-on-China' policies proposed by lawmakers thus far. Following proposed legislation regarding Chinese auto imports by Republican lawmakers, including Senators Marco Rubio (R-Fla.) and Josh Hawley (R-Mo.), Democratic Senator Sherrod Brown (D-Ohio) proposed a much more scarring regulation regarding Chinese EV imports.
In his letter to President Biden released on April 11, Brown urged for a complete ban on the importation of Chinese-built EVs "to save the auto industry."
“Chinese electric vehicles are an existential threat to the American auto industry,” the chair of the Senate Banking Committee wrote to President Biden. “We cannot allow China to bring its government-backed cheating to the American auto industry. The U.S. must ban Chinese electric vehicles now, and stop a flood of Chinese government-subsidized cars that threaten Ohio auto jobs, and our national and economic security.”
Related: Veteran fund manager picks favorite stocks for 2024
What's Your Reaction?
