China expands EV factories in Africa to counter Western tariffs

China has significantly invested in its electric vehicle (EV) manufacturing sector, providing over $231 billion in state aid from 2009 to 2023. This investment has allowed Chinese automakers to outsell their American counterparts for the first time, with brands like BYD leading the market. The global demand for EVs is rising, with sales increasing by 35% in 2023 compared to the previous year, and projections indicate continued growth in 2024. In response to Western tariffs, which have reached 100% in the U.S. and nearly 50% in the European Union, China is expanding its EV production into Africa. This strategy aims to mitigate losses from these tariffs while capitalizing on the continent's rich resources, particularly in rare-earth minerals essential for EV batteries. Chinese companies are already active in several African nations, including South Africa, Zambia, and the Democratic Republic of Congo, where they control a significant portion of cobalt and copper production. The Chinese Communist Party's close ties with African political elites facilitate this expansion, allowing for a more favorable environment for investment. Automakers like SAIC and BYD have begun selling EVs in various African markets, indicating a growing presence in the region. Additionally, the establishment of EV factories in Africa is seen as part of a broader strategy to dominate the renewable energy technology sector. As the global auto market shifts, the competitive landscape is changing, with Chinese EVs becoming increasingly popular due to their lower prices. This trend poses challenges for Western manufacturers, who must navigate the implications of China's aggressive expansion and the evolving dynamics of international trade.