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Title page 1

Contents 2

KEY TAKEAWAYS 1

INTRODUCTION 2

THE AUTO INDUSTRY IS VITAL FOR U.S. ECONOMIC COMPETITIVENESS 3

CHINA'S EV COMPETITIVENESS 5

CHINA'S EV MERCANTILISM 6

CHINESE EV MAKERS SHOULDN'T BE ALLOWED TO MANUFACTURE IN AMERICA 10

CONCLUSION 13

ENDNOTES 14

Figures 4

Figure 1. Industrial performance in motor vehicles (LQ and value-added output, 2020) 4

Figure 2. U.S. and Chinese global market shares in the motor vehicles industry 4

Figure 3. Top 10 subsidy recipients among Chinese A-share companies 7

Figure 4. Top 20 EV purchase subsidy recipients in China 8