The Impact of the Sino-US Trade War on China's New Energy Vehicle Export Volume: A Case Study of BYD and Tesla

Abstract

Since 2018, the Sino-US trade war has resulted in the imposition of significant tariff barriers, which have had a profound impact on economic relations between the two nations. The present study focuses on the new energy vehicle industry, examining the impact of tariff policies on trade flows within the sector and corporate export strategies. The analysis focuses particularly on the companies BYD and Tesla. Utilizing case studies, comparative analysis and data analysis methodologies, the study concludes that, while direct exports between the two countries were affected in the early stages of the trade war, both companies successfully adapted by making strategic adjustments, such as localizing production and diversifying markets. The establishment of the Shanghai Gigafactory by Tesla signaled China's emergence as a leading global export hub, while BYD experienced a substantial expansion into European and Southeast Asian markets. Despite the presence of adverse factors, including high tariffs, China's exports of new energy vehicles have exhibited an overall growth trend. This development signifies a transition in trade patterns, moving from a US-centric model to a more global and diversified export configuration. This study demonstrates that enterprises can mitigate the impact of trade wars through strategic flexibility and innovation, providing important insights into how emerging strategic industries should respond to trade protectionism.