NIO hopes for better US-China relations
The climate issue is forcing both countries to cooperate
Countries As an actor in both countries the NIO was caught between two stools
William Lee, NIO’s CEO, spoke in support of the U.S. and China improving their relationship and “building better trust in each other” as they aim to reduce CO2 emissions in the future.
Climate summit on CO2 emissions brings US and China together
Last week the United States hosted a two-day online climate summit. For example, US President Biden announced a new US goal of halving greenhouse gas emissions compared to 2005.
Even Chinese President Xi Jinping is not shy away from reaffirming the People’s Republic’s commitment to reducing emissions at the summit. The issue of climate protection is one of the few issues that the two countries, which have been embroiled in a tricky trade dispute that has not yet been resolved in recent years, firmly believe they can co-operate. Both countries rank first and second in the world in terms of greenhouse gas emissions.
China’s E.V. The market is very competitive now
An important factor in reducing climate-damaging CO2 emissions is the transition from internal combustion engines to alternative models such as electric motors. This growth has already accelerated in recent years, leading to an increase in EVs in China. The market is very competitive now. As the BBC writes, there are now more than 500 registered electric vehicle manufacturers.
The NIO CEO considers Tesla to be the biggest beneficiary of Chinese regulations
In addition to the NIO, American carmaker Tesla is one of the key players in the Chinese market. Team, led Elon Musk A novelty achieved in the People’s Republic. As the first car manufacturer, Tesla was allowed to operate in China without associating with a Chinese company.
In addition, Tesla has been able to rely on the support of the Chinese government in the past and has received grants to build a gigafactory in Shanghai. As Li estimated in the interview, Tesla is the automaker that “benefits the most from Chinese regulations”. However he acknowledged that their numbers were not enough to defeat Beijing’s support, but said that “the whole community needs to do that.”
NIO set foot in China and the United States – a balancing act
As for the NIO, it is important to maintain good relations with both countries. The company is based in China on one hand and listed on the New York Stock Exchange on the other. In addition, the electric car maker can count on the support of global investors, but at the same time the Chinese government is involved, which saved the group from bankruptcy in 2019. As one NIO media expert told the BBC, it is always a “balancing act” to satisfy both parties.
Comparison with Jack Flour
As the British news service writes, Li has been compared to Alibaba’s Jack Ma in the past, and, above all, has successfully set foot in the United States with the internet company China. However, comparison is not the only benefit. The flour group was recently targeted by Chinese oversight officials.
After Alibaba was accused of exploiting its market power, the online company must now change its business practices. In this context, it is not surprising that other Chinese technology companies are now afraid of being next. When asked by the BBC if Li was afraid to compare Mu or if he was nervous, he said the BBC was not worried about it: “We are a customer-oriented company, I’m worried about things like this”.
This is going well for the NIO in 2021
2021 is really going well for car manufacturers. The NIO recently reached an important milestone when the 100,000th series vehicle was produced. In addition, the company has announced the distribution distribution for the month of March and the first quarter of 2021. It remains to be seen whether the NIO will be able to continue this positive trend.