If that is the case, then even tariffs won't do, although US intelligence should be able to determine if such spywares are present in those Chinese EVs. Alternately, the US/EU could use that as an excuse to prevent Chinese EVs from entering their markets altogether.
If EVs become another TikTok, then that's another geopolitical headwind I am sure no pundits would have yet considered, that would further moderate EV demand growth.
That said, I think the Chinese Govt would only be targeting dissidents rather than the populace at large- but it may not stop Western paranoia over China's intentions.
But it is certain that EVs and critical minerals have entered geopolitical arena - would US suggest that Australia refrains or limits its sale of critical minerals to China, would it come to that? And we should acknowledge that China is already one step ahead recognising such possibility, to seek access to those critical minerals (lithium included) in emerging economies in Africa and South America. BYD already the No 1 EV maker has access to 10 years of its required lithium supply from 3 mines it controls in Africa and another in Chile.
LTR Price at posting:
$1.39 Sentiment: None Disclosure: Not Held
(20min delay)