US businesses are increasingly overlooking China as a viable market due to escalating challenges, leading to a shift in focus toward alternative opportunities and partnerships.

Declining Interest in Chinese Markets

US businesses are increasingly viewing China as a less viable opportunity due to a rising number of challenges. Economic uncertainties, regulatory hurdles, and geopolitical tensions are among the key factors that have contributed to this shift in perspective. Companies that once saw China as a prime destination for investment are now reassessing their strategies and looking elsewhere.

Shift in Business Strategies

Many American firms are pivoting their focus to more stable markets. This realignment is driven by the need to reduce risk in their global supply chains and diversify their operations. As a result, countries in Southeast Asia and Latin America are becoming attractive alternatives for US businesses in search of new opportunities.

Long-Term Implications

This trend could have significant long-term implications for both economies. The diminished interest in China might alter the landscape of global trade and investment patterns. As US companies seek to mitigate risks, there could be lasting effects on China’s market growth and its role as a manufacturing hub.

Source : US businesses dismiss China as a business opportunity amid rising challenges – Organiser

Tesla’s sales dipped 1% in 2024, marking its first decline in over a decade, while BYD surged with 1.76 million EV sales, narrowing the competition gap.

Tesla’s Sales Decline

Tesla has faced its first sales decline in over ten years, with 2024 deliveries falling to nearly 1.79 million vehicles, a 1% drop from 2023. Despite aggressive price cuts to attract buyers, the company led by Elon Musk struggled to maintain its position as the top electric vehicle (EV) manufacturer. In contrast, China’s BYD is on track to nearly close the gap, reporting 1.76 million EV sales in 2024.

BYD’s Market Surge

BYD experienced robust growth, achieving a 41% year-on-year increase in total vehicle sales, totaling over 4.2 million. Most of BYD’s sales occur in China, where the company has extended its lead over brands like Volkswagen and Toyota. The rise has been fueled by increasing demand for hybrids and favorable market conditions, including reduced prices and government incentives for EV adoption.

Industry Challenges

Tesla continues to grapple with declining sales and increased competition, particularly in China, where rivals have gained traction. The EV market is softening in regions such as the US and Europe, prompting companies like Ford and Volkswagen to adjust their sales forecasts. Additionally, geopolitical tensions have led to tariffs against Chinese imports, impacting the industry landscape.

Source : Tesla sales stall as China’s BYD closes in

The State Council has announced 2025 import-export tariff adjustments to enhance domestic demand and industrial growth. This includes tariff reductions on medical supplies and green products, increases on certain commodities, and support for technological innovation and sustainable practices.

The State Council has announced new adjustments to the China import-export tariffs for 2025 to expand domestic demand and serve industrial development and technological progress in the coming year.

These adjustments include tariff reduction on certain medical supplies, critical equipment and key parts, and green products, tariff increases on certain commodities based on domestic demands such as syrup and sugar-containing premixes, vinyl chloride, and battery separators, as well as adjustments to tariff items.

China will adjust import and export tariffs on selected goods in 2025 in a bid to expand domestic demand, support high-quality development and opening up, and  enhance the synergy between domestic and international markets, the Customs Tariff Commission of the State Council (the ‘Commission’) said on Saturday, December 28, 2024.

Below we take a closer look at the changes introduced in the 2025 Tariff Adjustment Plan.

To promote technological innovation and support the development of new and advanced productive forces, China will reduce import tariffs on key items, including automatic transmissions for special-purpose vehicles, polyolefin polymers, ethylene-vinyl alcohol copolymers, fire trucks, and rescue vehicles.

In alignment with efforts to enhance and improve public well-being, tariff reductions will also be applied to critical medical and healthcare materials such as sodium zirconium cyclosilicate, viral vectors for CAR-T cancer therapy, and nickel-titanium alloy wires for surgical implants.

To foster green and low-carbon development, import tariffs on ethane and certain recycled copper and aluminum materials will be lowered, encouraging sustainable practices and resource efficiency.

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