Part 2/10:
China’s electric vehicle (EV) manufacturers found themselves in dire straits, facing imminent collapse without urgent government assistance. The alarming reality was that a staggering 90% of core chips in Chinese-made EVs were imported from the United States. Models like the Zeer 007 and BYD Seal largely rely on Qualcomm chips, demonstrating the extent of dependence on foreign technology.
The push for tariff exemptions stemmed from a clear and pressing need. As EV companies warned the government of crippling supply shortages if continued tariffs were imposed, the industry faced a potential total halt in production. With many core models, like the Neo ET7 and the Lee Auto L9, running on Qualcomm chips, the urgency for tariff relief was palpable.