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Chinese Car Makers to Boost Overseas Investments as Trade Barriers Rise
The escalating trade tensions in the electric vehicle (EV) sector suggest the risks of more barriers for Chinese carmakers, and Fitch Ratings expects them to adapt by increasing investment in alternative markets and diversifying production to ensure growth and profitability in an evolving global landscape. We expect capex and equity investments in partnerships will rise, and weigh on cash flows. Growing headwinds facing EV exports could also intensify competition and accelerate a shift towards EVs in China’s domestic market. This would in turn exacerbate risks of further market-share losses of internal combustion ... (full story)