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The inference of todays Trump announcements and China's matching response including anulling all previous recent agreements is that Tesla is now back to full Chinese import tariffs and Tesla's Chinese investment/partnership is at risk?
and likely respond in a targetted and overtly painful way to select US industries.
Question is though, will the Chinese self-harm by scrubbing the Tesla China factory deal as they are desperate to get hold of Tesla technology on their declared path to dominate the world's next generation automotive manufacturing esp BEVs.
Trump needs to be in no doubt that China will view this as a war which they have no intention of losing and if he kicks it off, which he seems to have done, the US will need to approach it on exactly the same basis, if they go at it half-heartedly and incoherently, the Chinese will simply run rings around not just the US but the rest of the world.
With the current trade dispute, China first threatened to add an additional tariff to cars--from 25% to 50%. It then softened its tone by reducing car tariff down to 15% from current 25%.
But now, the latest threat is "all agreements" which means we can say goodbye to the 15% Tesla tariff!
China has survived for centuries and even when their land was divided and conquered by foreigners in very recent past--England "found" Hongkong and took the land since 1841 to 1997, Portugues "found" Macau and colonized it from 1557 to 1999, and so on...
Trump needs to be in no doubt that China will view this as a war which they have no intention of losing and if he kicks it off, which he seems to have done, the US will need to approach it on exactly the same basis, if they go at it half-heartedly and incoherently, the Chinese will simply run rings around not just the US but the rest of the world.