An ex-diplomat from Canada, who China detained earlier, expressed concerns about the influx of Chinese-made EVs in the Canadian market on Tuesday, outlining that Ottawa’s deal could put Canada on the back foot.
Drive Out Local Competition
Michael Korvig, who was imprisoned by Beijing for three years following his 2018 arrest, said the deal could see Chinese companies “drive out local competition and make Canada dependent on importing Chinese EVs,” according to a Bloomberg report quoting Korvig at a summit in Ottawa.
He also shared that Chinese companies could bring in knockdown kits in Canada to assemble, which would not result in any development of Canada’s technology or supply chains. “They want to control the tech stack and then use control of that tech for geopolitical dominance and leverage,” he said.
Opposition To Stellantis’ Plans
Korvig isn’t the only one who has expressed opposition to Chinese EVs in the Canadian market. Earlier, Ontario’s Premier Doug Ford slammed potential agreements between Stellantis NV (NYSE:STLA) and China’s Zhejiang Leapmotor Technology Co. Ltd., a company in which Stellantis owns a 20% stake. The agreement would see Stellantis manufacture Leapmotor EVs at its facility in Brampton, Ontario.
Pierre Poilievre, who is Canada’s leader of the Official Opposition, had also touted a U.S.-focused auto industry strategy, which would include exemptions for automakers from federal sales tax for Canadian-made vehicles.
What The US Says
Korvig’s concerns are in line with President Donald Trump and the White House’s criticism of the deal between Ottawa and Beijing, which would see over 49,000 EVs being brought into the country at a lower tariff rate. The deal also has the potential to expand that figure to 70,000 EVs.
Trump’s ambassador to Canada, Pete Hoekstra, had expressed his opposition to Chinese-made EVs crossing the border to enter the U.S. He also expressed security concerns about Canada’s tariff agreement with China.
Trump himself had criticized the deal heavily, calling it one of the worst deals of all time. He had also threatened to impose over 100% tariffs on Canada if there were any agreements between China and Canada.
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Photo courtesy: Natee Meepian via Shutterstock
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