"Changes in policies in the automobile sector, namely on tariffs and foreign ownership, will induce Chinese consumers to buy more imported cars from the rest of the world (except the US) and to buy fewer imported cars from the US," ING analysts argue.
"US automobile producers, which are also new energy car producers, can build a production line in China now without ownership restrictions."
"Other US car manufacturers might also move their production lines to China if tariffs continue into 2022. We do not expect tariffs to affect China automobile and parts producers as fall in exports to the US could be sold to the domestic market, which is growing."
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