Russia’s Auto Market Collapse Forces Chinese Carmakers Abroad as Trump and BRICS Fuel Trade Fears

Chinese automakers are facing a crisis. What looked like a goldmine in 2023 has turned into a closed market by the end of 2024. After the invasion of Ukraine, Western brands exited Russia and China quickly filled the empty showrooms. But the new reality is very different — Moscow imposed a “recycling fee” that raised the price of basic models by more than $8,000, while sky-high interest rates make it nearly impossible for Russian buyers to secure loans. The result? Car sales in Russia have dropped 27% in just six months, and imports of Chinese vehicles have plunged by 62%.

Chinese Brands Lose Ground The damage is real. Geely reported an 8% decline in exports between January and August, Great Wall Motor barely broke even, and Chery, China’s biggest exporter, grew by only 11% compared to last year’s 25%. The growth momentum is gone. Meanwhile, BYD, which has no official presence in Russia, more than doubled its overseas sales, showing how aggressively Chinese giants are chasing new markets while Russia sinks into turmoil. The problem runs deeper. Chinese automakers suffer from excess capacity at home and are locked in a brutal price war. The collapse of the Russian market means one less outlet, while more countries are now imposing tariffs to protect their domestic industries. The harder China pushes, the more doors close.

Geopolitical Tensions: Trump, BRICS, and Tariffs Global politics are adding more fuel to the fire. Donald Trump told reporters that European leaders will fly to Washington this week to discuss how to end the war in Ukraine. He admitted he is “not satisfied” with the current situation but confidently repeated that the conflict “will be settled soon.” At the same time, a virtual BRICS summit is being prepared, called by Brazilian Prime Minister Lula da Silva. Chinese President Xi Jlnping and Russian President Vladimir Putin are expected to attend, with Trump’s trade threats at the top of the agenda. Trump has already warned of 100% tariffs if BRICS members continue their plans to move away from the U.S. dollar. Brazil, meanwhile, is using the summit to push for multilateralism and encourage other emerging markets to join forces.

Conclusion The collapse of Russia’s auto market highlights the fragility of China’s export strategy. Overcapacity, rising tariffs, and geopolitical friction are forcing Chinese automakers to seek new markets — at a time when global trade is shifting day by day. For Beijing, it is a warning sign that expansion cannot rely on a single outlet. For the rest of the world, it’s a reminder that economics and geopolitics are more intertwined than ever.

#china , #russia , #BYD , #TradeWar , #TRUMP

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