Trump tried to hit China’s car industry hard, he barely left a scratch: Here’s how Russia helped Beijing shrug off the blow
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Published: Apr 22, 2025, 11:06 IST | Updated: Apr 22, 2025, 11:06 IST
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World: Despite rising trade barriers from the United States, Europe, and others, China remains a powerful force in car production, with domestic sales thriving and exports expanding.
As US President Donald Trump's tariffs bite into exports, Chinese car manufacturers are turning to Russia and the Middle East to cushion the impact, with fresh numbers revealing just how dominant China’s auto industry has become on the world stage.
Despite rising trade barriers from the United States, Europe, and others, China remains a powerful force in car production, with domestic sales thriving and exports continuing to expand.
New research from global consultancy AlixPartners shows that China’s vehicle exports jumped by 23% in 2024, reaching 6.4 million passenger vehicles. That puts China more than 50% ahead of Japan, now the world’s second-largest car exporter.
For the first time, exports to Russia and the Middle East made up 35% of China's overseas car sales, surpassing total shipments to Europe and North America combined.
Also read: Is China's economy exposed to tariff hit?
“China's car sales to Russia and Belarus have more than doubled over the past five years, insulating it in part from the volatility of tariffs,” said Andrew Bergbaum, global leader of AlixPartners’ Automotive and Industrial Practice.
The ongoing trade war has still made an impact. According to AlixPartners, new tariffs imposed by the US and other countries are expected to raise the cost of Chinese vehicles and car parts by around 24%, or $46 billion, based on last year’s export figures.
Nearly $45 billion of that additional cost is linked to US tariffs. However, it's not yet clear whether carmakers, suppliers or consumers will end up bearing those costs.
That said, the report pointed out that the tariff-related losses represent only a small portion of China’s total car production.
While tariffs are expected to cool China's export growth to 4% in 2025, the domestic market is forecast to stay strong. Sales in China are expected to rise by another 4% next year, reaching 26.8 million vehicles.