BMW has faith in China

The German OEM is largely unfazed by risks to the automotive sector from frostier geopolitical relations

BMW has faith in China
BMW is comfortable expanding its Chinese manufacturing footprint 

The Chinese business environment has got decidedly chillier in recent months, especially for US firms. In late May, a US chip manufacturer was banned from infrastructure projects, leading to calls from US politicians for further retaliatory curbs on Chinese technology.

This follows a Chinese crackdown on US and US-linked consultancy firms. And it is part of an increasingly fractious economic relationship between not just the US and China, but the East Asian heavyweight and a selection of Western economies.

The automotive industry, and particularly its burgeoning EV sector, can hardly expect to be immune from these tensions. The rush to build battery metal supply chains and refineries, gigafactories and other components either at home or linked to ‘friendly’ countries is a direct attempt by the US, EU and other allies to wean themselves off Chinese dependence and weaken Beijing’s hand.


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