Automotive sector
According to people familiar with the matter, Biden is considering using methods other than tariffs to restrict imports of Chinese "smart cars" and related components.
Regarding Biden's punitive measures to restrict the import of Chinese parts, there is no clear standard at present. [We believe that parts (iron, interior and exterior decorations, etc.) that are built in Mexico and produced locally rather than assembled in Mexico are most likely not within the scope of the restriction because they do not involve the possibility of "smart cars" that may cause data concerns in the United States.
China has given birth to a number of globally competitive parts enterprises, going out is an inevitable trend, the United States market barriers can not reverse this trend, local factory construction is also the ultimate solution, still optimistic about a number of active overseas factories, customer product richness, with the ability to resist the risk of a single market domestic parts manufacturers.
The short-term is an emotional impact, and there is a high probability that the high-quality ** will be repaired back. At present, any industry must pay attention to the impact of the war, after all, this year is the year of the United States.
Vertex Financial Investment Consultant: Li ZhiLicense number: A0380623120005
The above content is for reference only and does not constitute investment advice. Investment is risky, and you need to be cautious when entering the market.