SOURCE / ECONOMY
California governor’s praise of BYD cars adds new elements to China-US competition
Published: Oct 25, 2023 09:53 PM
Illustration: Xia Qing/Global Times

Illustration: Xia Qing/Global Times

"I want two," California Governor Gavin Newsom jokingly said on Tuesday after he took a test drive of BYD's sport utility vehicle (SUV) Yangwang U8, which is capable of doing 360-degree tank turns. 

Newsom's surprising praise of the luxury off-roader SUV added some interesting elements in helping navigate China-US relations, which is the most complex but most consequential bilateral relationship in the world.

Amid tensions with China provoked by the US in recent years, Newsom's weeklong trip to China continued on Tuesday with a tour of the world's first zero-emission municipal bus fleet in the South China city of Shenzhen, where he showed great interest in the double-decker e-buses and electric SUVs that were on display. 

As reported by Shenzhen Daily, Newsom said that "this is another leap in technology, the next-level leap," with a thumbs-up after a test drive of BYD's Yangwang U8. When asked if he wanted to take one back to Sacramento, the capital of California, the governor jokingly said: "No, I want two."

What signal does Newsom's test drive of a BYD car send? Does it mean that China-US competition is easing or that the US side will be friendly toward Chinese companies, instead of maliciously suppressing Chinese enterprises and engaging in vicious competition? It's hard to say, and at the very least, we cannot be blindly optimistic. After all, Newsom is just the governor of one US state and he cannot necessarily represent Washington's views.

However, to some extent, Newsom's praise of BYD's Yangwang U8 can be seen as a positive signal that at the level of the state governments, some people are willing to focus on practical cooperation, instead of the zero-sum geopolitical games, and to adopt an open or even positive attitude toward Chinese companies and to have mutually beneficial cooperation with them. It is hoped there will be more positive signals to be sent out. After all, China and the US need healthy competition and practical cooperation.

Before Newsom's test drive, BYD's Yangwang U8 had attracted a large number of fans in China as well as in other parts of the world. BYD's latest innovation comes through the SUV, which can drive in water in emergency situations with an emergency floating mode made possible by the waterproof and sealed body. In addition, the Yangwang U8 can pull off insane 360-degree tank turns by controlling individual wheel speeds.

This, to some extent, represents the advanced technology of China's electric vehicle (EV) sector. China's rapid rise in the EV market is undeniable. The industry is growing at a speed that has surprised some Americans and made them nervous, as Chinese EV companies become major competitors for American automakers like Tesla.

However, if American policymakers hope that US automakers can win amid fierce global competition, the US needs free trade and market-oriented competition, not zero-sum geopolitical games and trade protectionism, which only make things worse. It's obvious that Newsom understands this.

California leads the US states in EV adoption and is set to phase out the sale of new internal combustion vehicles by 2035. The US state has a long history of driving innovations for climate and environmental sustainability. 

It is a pragmatic spirit that has enabled California to make outstanding achievements in the green economy, and it is precisely its achievement that has made California a forerunner in promoting climate and economic cooperation with China, and it will be among the first batch of US states to benefit from mutually beneficial cooperation with China. 

According to Newsom's office, California and South China's Guangdong Province signed a new memorandum of understanding that is focused on carbon markets, industrial and power sector decarbonization, and climate adaptation. Even when China and the US have disagreements, it is vital that the two countries find ways to work together on issues of shared - and global - concern, including climate change. It is hoped the US will create favorable conditions for coordination and cooperation in areas such as the green economy.

It won't be easy for the Joe Biden administration to reverse course amid a complex political environment in Washington, which calls for confrontation with China on almost every topic, as a large number of politicians there simply cannot tolerate seeing China to make progress, especially in competitive industries of great significance for the future such as EVs.

Economic prosperity requires more pragmatic people, like Newsom, to promote practical cooperation between China and the US, starting from the local level and gradually expanding to the whole country.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn