On January 14, 2024, rows of new energy vehicles were parked at the automobile distribution center of Changan Automobile in Chongqing, China.
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Shares of Chinese automakers climbed on Tuesday, unaffected by a U.S. government proposal to ban certain types of cars with Chinese and Russian auto parts, and were broadly higher after Beijing announced policy easing.
Listed in Hong Kong ideal car It rose more than 8%, while NIO soared 9%. BYD shares rose 2.7% and Geely shares rose 3.3%. Zero Sports Car rose 4.35%.
The proposed rule seeks to prohibit the import and sale of vehicles with certain vehicle communications systems or autonomous driving systems, as well as hardware or software associated with China or Russia. These systems support external communications such as Bluetooth, cellular and Wi-Fi modules.
Joe Biden’s administration cites national security risks as its latest measure aimed at curbing China’s auto industry’s influence and influence in the U.S.
“Today’s cars are equipped with cameras, microphones, GPS tracking and other technology connected to the Internet. It is not difficult to imagine that foreign adversaries with access to this information could pose serious risks to our national security and privacy. U.S. citizens,” Secretary of Commerce Gina Raimondo said.
Software restrictions will be implemented starting in the 2027 model year, while hard restrictions will be implemented in the 2030 model year or January 2029 (for vehicles without a model year).
Ivan Wu, an international equity research analyst at Guotai Junan, said that today’s rise in the automobile sector was mainly driven by the overall market conditions in Hong Kong, which is related to the support of the People’s Bank of China.
Pan Gongsheng, governor of the People’s Bank of China, said at a press conference on Tuesday that the amount of cash banks have on hand, known as the deposit reserve ratio, or RRR, will be cut by 50 basis points. He also announced that the People’s Bank of China would lower the 7-day repurchase rate by 0.2 percentage points and other measures.
Wu said the U.S. proposal to ban Chinese auto parts may not have a direct negative impact on China’s auto industry because sales of Chinese auto exports to the U.S. market are “very small” and limited. In addition, Chinese parts companies have set up factories in South America. According to the U.S.-Mexico tariff agreement, these parts can be directly exported to the U.S. market.
Chinese car dealers faced losses totaling 138 billion yuan ($19.55 billion) in the first eight months of this year as they were forced to sell new cars at deep discounts, according to recent data from the China Automobile Dealers Association (CADA).
