Tesla had applied for exclusion from the surcharge placed on Chinese-made goods but was rejected. The product was deemed too important to China in the trade war.
Tesla Wins No Favors in Trump-China Trade War
The computer brain of the Model 3 was rejected for being ‘strategically important’ to China’s ‘Made in China 2025’ initiative. As reported by Reuters, the 3.0 Autopilot electronic control unit (ECU) will be subject to full tariffs.
Tesla has pleaded with the U.S. Trade Representative’s office (USTR) since 2018 when the initial application for tariff relief was made. Tesla told U.S officials at the time:
“…increased tariffs on this particular part cause economic harm to Tesla, through the increase of costs and impact to profitability.”
Furthermore, Tesla claimed that competent manufacturers couldn’t be found anywhere outside of China. They told the USTR:
“…choosing any other supplier would have delayed the program by 18 months with clean room setup, line validation, and staff training.”
The application was denied despite Tesla’s own program of reflashing the autopilot firmware when it lands in California. This is another reminder that the issue is not necessarily the proliferation of Chinese technology on U.S soil. The stumbling block here is an economic one, and Trump’s policies don’t allow China any favors.
Made in China 2025: Reason to Fear Chinese Expansion
‘Made in China 2025’ is an initiative to radically alter the composition of the Chinese economy. Until now the country’s growth has been built upon the cheap, mass-produced widgets that we all associate with the ‘Made in China’ tag. Now, China has identified 10 major emerging industries that it hopes to dominate in the coming years. The thing is, right now they’re all being led by the U.S.
Such industries include artificial…