Zoe Zhang
SHANGHAI (Reuters) – The founder of Chinese electric vehicle (EV) maker Nio (NYSE:) called for openness in a rare appearance in the United States, where policymakers are seeking to further limit China’s access to the world’s second-largest auto market. .
William Lee, speaking at an event at Harvard University on Saturday, said the rapid growth of electric vehicles in China was the result of an “open and competitive” market where “all products are welcome, regardless of their brands or origins.”
He cited Tesla’s (NASDAQ:) success in China, where billionaire Elon Musk’s automaker has sold 1.36 million electric vehicles over the past three years, adding that its presence has boosted EV penetration and energized the industry.
“Competition will lead to more investment, longer time to break-even, less margin for error and less chance of success,” Lee said, according to a transcript of his speech provided by the company.
“However, we do not expect China to adopt a policy of protecting domestic players because we see the other side of the coin, where openness will ultimately benefit industries and sustainable development, and make the best companies even better.”
Tensions are rising between China and the West over Chinese electric vehicle exports, which Washington and Brussels say are heavily government-subsidized and could harm domestic automakers.
The European Union is investigating whether Chinese electric vehicle makers such as BYD (SZ:), Geely and SAIC could lead to tariffs instead of subsidies.
Few Chinese-made electric vehicles are sold in the US market, where they are already subject to high tariffs. China’s largest electric vehicle maker BYD said it has no plans to sell its vehicles to the country.
President Joe Biden, a Democrat, is considering raising tariffs on Chinese electric vehicles, auto executives told Reuters. Republican Sen. Marco Rubio and Democratic Sen. Sherrod Brown have expressed concerns about cheap Chinese electric vehicles, including on national security grounds.
Lee said Nio is exploring U.S. sales on a quarterly basis. In the Chinese market, with its premium range starting at 298,000 yuan ($42,000), the automaker sold 30,053 electric vehicles in the first three months, compared with 132,420 vehicles sold by Tesla.
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