Foreign policies shape how automakers compete with China

Foreign policies shape how automakers compete with China

U.S. lawmakers are seeking stronger measures to protect the domestic automotive market from subsidized, low-cost Chinese competitors, just like other countries have for years established policies to safeguard their homegrown manufacturers from foreign rivals.

Two narratives have emerged globally as Chinese brands like BYD Co. Ltd., Chery Automobile Co. Ltd. and others increase exports to other nations and begin manufacturing outside of their native homeland: In Europe, legacy automakers have struggled to fend off the newcomers and now contemplate closing plants for the first time. Meanwhile, major auto-producing countries in Asia have restricted the entrance of foreign competitors. The challenge, however, is balancing protection and competitiveness.