Back in 2018, when Donald Trump was first menacing the global trade system, the world’s largest car market suddenly went into reverse. After decades of uninterrupted growth, car sales in China began to backslide as its economy sputtered. Foreign carmakers, which then controlled around three-fifths of the market, were hit hard. Now forecasters are expecting China’s car market to once again go backwards. Local carmakers, which dominate the market today thanks to their prowess in electric vehicles (EVs), may bear the brunt this time. Even so, foreign producers will not be spared, as Chinese rivals accelerate their expansion abroad.
