EVs, tariffs in the spotlight as Chinese automakers take leading role at Shanghai auto show

SHANGHAI (AP) — Leading automakers are showcasing their latest designed-for-China and the world models at the Shanghai auto show this week, fighting not to be edged aside in the world’s largest car market while watching for U.S. President Donald Trump’s next steps in his trade war.

This year's show in the sprawling industrial outskirts of Shanghai comes at a pivotal moment. Three decades after Beijing set out to build a world-class auto industry, local manufacturers account for about two-thirds of sales inside China, and a growing share of global exports.

But with U.S. President Donald Trump raising tariffs and the European Union slapping duties on Chinese electric vehicles, selling to some overseas markets is growing increasingly challenging.

“Geopolitics are very complex and the situation remains uncertain,” Wei Jianjun, chairman of Great Wall Motors, told reporters Wednesday. “But Great Wall is always exploring investments in overseas markets.”

The exhibition is holding two media days and two trade days before it opens to the public on Sunday. It runs until May 2.

Encouraged by government subsidies for scrapping older cars for the latest models, Chinese drivers have embraced the switch to electrics, with sales of battery powered and hybrid vehicles jumping 40% last year.

A total of 31.4 million vehicles including buses and trucks were sold last year in the world’s biggest market by sales, up 4.5% compared to a year earlier, the China Association of Automobile Manufacturers reported.

Growth in sales of EVs was offset by falling sales of traditional gasoline and diesel-powered vehicles, which still accounted for just over half of new car sales.

Chinese electric vehicle maker BYD nudged past Tesla as the world’s biggest maker of EVs by sales last year, reporting revenue of over $100 billion. It recently announced an ultra fast EV charging system that it says can provide a full charge for its latest EVs within five to eight minutes, about the time needed to fill up at the pump. It plans to build more than 4,000 of the new charging stations across China.

To gain access to China's potentially huge market, foreign automakers like Volkswagen, General Motors, BMW and Ford set up joint ventures with state-owned local companies beginning in the 1980s and '90s, helping them build the capacity and technology to compete on a world scale.

They also created sprawling supply chains in Shanghai and other major manufacturing hubs, helping to nurture other big names in Chinese automaking, such as BYD, Geely and Great Wall Motors.

With growth at home limited by brutal competition, they're expanding rapidly especially in Southeast Asia and other developing economies with relatively affordable sedans, SUVs and pickup trucks.

Shanghai’s auto show is a gathering for the “survival of the fittest,” said Zhou Lijun, director and chief researcher of the industry analysis group Yiche Research Institute.

That doesn't mean all the EV makers go it alone. BYD teamed up with Daimler, now the Mercedes-Benz Group, to launch its Denza premium brand. It's also challenging Toyota and other top tier brands with its luxury Yangwang brand, priced at up to 2 million yuan ($280,000)

Opening markets wider to foreign competition has given car buyers a choice of more affordable, innovative vehicles. That's a mixed blessing for older automakers like GM, Ford, Toyota and VW that are also fighting a battle of attrition in China.

“China is still a market worth fighting for,” said Oliver Zipse, chairman of the BMW Group, which like other automakers highlighted a “In China, for China,” approach, at “China speed.”

Overhanging the upbeat talk in Shanghai by both Chinese and foreign automakers of manufacturing in China for the world are Trump's tariffs of up to 145% on Chinese goods, despite a 90-day pause that has spared many other countries, and 25% U.S. tax on imported cars and auto parts.

Japanese automaker Nissan Motor Co.'s head of China operations, Stephen Ma, said the company plans to make 10 new battery electric or hybrid models by 2027 in China, for China and for “export to the world, except one country — you can guess which one."

Higher U.S. and European tariffs on foreign-made EVs are prompting Chinese newcomers to shift production closer to those markets as more Western consumers opt for the latest Chinese models.

Just a few decades ago, Nissan, Toyota and other Japanese automakers were fighting trade friction with the United States over their own exports. Now, they employ hundreds of thousands of U.S. workers at their U.S. factories.

“The trade war between China and the United States has blocked direct exports from China to the United States, but it hasn't blocked local production there or the establishment of global production bases in Europe or elsewhere," Zhou said.

A report by the Rhodium Group shows that nearly half the world's markets are restricting imports from China, in part because of national security concerns linked to the advanced electronics in EVs and other high-tech vehicles. A minority of countries like Australia and South Africa remain relatively open, and Russia is a major market but is nearly saturated, it says.

Chinese automakers lag behind global leaders like Toyota in conventional gasoline and diesel fueled vehicles, but they can sell EVs at roughly the same price, while also solving the problems of range and fast charging.

China has become part of what geopolitical analyst Yanmei Xie described as a “technological paradigm shift” in a commentary in the Japanese financial publication Nikkei Asia. Automakers in China are going electric not just because of the green transition, but as a route to “technological and industrial dominance,” she wrote.

EV makers in China have benefited from not having huge legacy operations that have to make the transition, said Stefan Sielaff, vice president of global design for EV maker Zeekr Group, part of Geely's stable of brands. Founded in 2021, it's selling cars in more than 80 markets including in Europe.

“They can immediately react to market demand, to customer demand, and can deliver very, very fast,” he said. “We have done most of these cars in two years. From 0 to 100 in two years.”

AP researcher Yu Bing contributed.

A man films near a special Black Myth:Wukong edition of a Tang L model from BYD during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

Visitors look at the new Firefly model from Chinese automaker Nio during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

Staff from Chinese automaker Nio waits for visitors at their booth during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

An executive from Chinese car manufacturer Geely talks the satellite communication capabilities of its Galaxy Cruiser during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

Oliver Zipse, Chairman of the board of management of BMW AG, speaks during a press conference for BMW at the Shanghai auto show, Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

Exhibitors prepare for an unveiling at the Auto Show in Shanghai, Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

A BYD Han L car model inspired by Black Myth: Wukong is displayed at the Auto Show in Shanghai, Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

Visitors look at the Han L EV model from BYD during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

A man dressed as the character from Black Myth:Wukong promotes a special edition Han L model from BYD during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

An executive from Nissan unveiled the Frontier Pro, a plug-in hybrid, during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

An attendee arrives to the Auto Show in Shanghai, Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

A man talks near the Han L EV model from BYD during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

The ID Aura concept car is shown during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Attendees look at the latest cars from Volkswagen Group during the media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Attendees look at the latest cars from Volkswagen Group during the media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

A concept car is shown during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Ralf Brandstatter, Chairman and CEO of Volkswagen Group China, speaks during the media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Volkswagen executives and guest pose for photos during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Performers take part in the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Performers take part in the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Performers take part in the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

The Audi E5 Sportback is launched during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Olive Blume, Chairman of the Board of Management of Volkswagen Group speaks during a media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Olive Blume, Chairman of the Board of Management of Volkswagen Group, speaks during a media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

A concept car is shown during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

The A6L-etron is launched during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

U.S. forces have boarded another oil tanker in the Caribbean Sea. The announcement was made Friday by the U.S. military. The Trump administration has been targeting sanctioned tankers traveling to and from Venezuela.

The pre-dawn action was carried out by U.S. Marines and Navy, taking part in the monthslong buildup of forces in the Caribbean, according to U.S. Southern Command, which declared “there is no safe haven for criminals” as it announced the seizure of the vessel called the Olina.

Navy officials couldn’t immediately provide details about whether the Coast Guard was part of the force that took control of the vessel as has been the case in the previous seizures. A spokesperson for the U.S. Coast Guard said there was no immediate comment on the seizure.

The Olina is the fifth tanker that has been seized by U.S. forces as part of a broader effort by Trump’s administration to control the distribution of Venezuela’s oil products globally following the U.S. ouster of President Nicolás Maduro in a surprise nighttime raid.

The latest:

Republican Ho Nieh is the new chairman of the Nuclear Regulatory Commission, replacing fellow Republican David Wright.

Nieh, who was confirmed to the commission last month, previously worked at Atlanta-based Southern Co., which recently added two new nuclear reactors at Plant Vogtle near Augusta.

Nieh worked at the NRC for two decades and is the agency’s first former resident inspector to serve as a commissioner.

Trump recently fired a Democratic commissioner as he continues to assert more control over independent regulatory agencies.

Richard Grenell, president of the Kennedy Center, says a documentary film about first lady Melania Trump will make its premiere later this month, posting a trailer on X.

As the Trumps prepared to return to the White House last year, Amazon Prime Video announced a year ago that it had obtained exclusive licensing rights for a streaming and theatrical release directed by Brett Ratner.

Melania Trump also released a self-titled memoir in late 2024.

Some artists have canceled scheduled Kennedy Center performances after a newly installed board voted to add President Donald Trump’s to the facility, prompting Grenell to accuse the performers of making their decisions because of politics.

Mexico President Claudia Sheinbaum says that she has asked her foreign affairs secretary to reach out directly to U.S. Secretary of State Marco Rubio or Trump regarding comments by the American leader that the U.S. cold begin ground attacks against drug cartels.

In a wide-ranging interview with Fox News aired Thursday night, Trump said, “We’ve knocked out 97% of the drugs coming in by water and we are going to start now hitting land, with regard to the cartels. The cartels are running Mexico. It’s very sad to watch.”

As she has on previous occasions, Sheinbaum downplayed the remarks, saying “it is part of his way of communicating.” She said she asked her Foreign Affairs Secretary Juan Ramón de la Fuente to strengthen coordination with the U.S.

Sheinbaum has repeatedly rebuffed Trump’s offer to send U.S. troops after Mexican drug cartels. She emphasizes that there will be no violation of Mexico’s sovereignty, but the two governments will continue to collaborate closely.

Analysts do not see a U.S. incursion in Mexico as a real possibility, in part because Sheinbaum’s administration has been doing nearly everything Trump has asked and Mexico is a critical trade partner.

Trump says he wants to secure $100 billion to remake Venezuela’s oil infrastructure, a lofty goal going into a 2:30 meeting on Friday with executives from leading oil companies. His plan rides on oil producers being comfortable in making commitments in a country plagued by instability, inflation and uncertainty.

The president has said that the U.S. will control distribution worldwide of Venezuela’s oil and will share some of the proceeds with the country’s population from accounts that it controls.

“At least 100 Billion Dollars will be invested by BIG OIL, all of whom I will be meeting with today at The White House,” Trump said Friday in a pre-dawn social media post.

Trump is banking on the idea that he can tap more of Venezuela’s petroleum reserves to keep oil prices and gasoline costs low.

At a time when many Americans are concerned about affordability, the incursion in Venezuela melds Trump’s assertive use of presidential powers with an optical spectacle meant to convince Americans that he can bring down energy prices.

Trump is expected to meet with oil executives at the White House on Friday.

He hopes to secure $100 billion in investments to revive Venezuela’s oil industry. The goal rides on the executives’ comfort with investing in a country facing instability and inflation.

Since a U.S. military raid captured former Venezuelan leader Nicolás Maduro on Saturday, Trump has said there’s a new opportunity to use the country’s oil to keep gasoline prices low.

The full list of executives invited to the meeting has not been disclosed, but Chevron, ExxonMobil and ConocoPhillips are expected to attend.

Attorneys general in five Democratic-led states have filed a lawsuit against President Donald Trump’s administration after it said it would freeze money for several public benefit programs.

The Trump administration has cited concerns about fraud in the programs designed to help low-income families and their children. California, Colorado, Minnesota, Illinois and New York states filed the lawsuit Thursday in the U.S. District Court for the Southern District of New York.

The lawsuit asks the courts to order the administration to release the funds. The attorneys general have called the funding freeze an unconstitutional abuse of power.

Iran’s judiciary chief has vowed decisive punishment for protesters, signaling a coming crackdown against demonstrations.

Iranian state television reported the comments from Gholamhossein Mohseni-Ejei on Friday. They came after Supreme Leader Ayatollah Ali Khamenei criticized Trump’s support for the protesters, calling Trump’s hands “stained with the blood of Iranians.”

The government has shut down the internet and is blocking international calls. State media has labeled the demonstrators as “terrorists.”

The protests began over Iran’s struggling economy and have become a significant challenge to the government. Violence has killed at least 50 people, and more than 2,270 have been detained.

Trump questions why a president’s party often loses in midterm elections and suggests voters “want, maybe a check or something”

Trump suggested voters want to check a president’s power and that’s why they often deliver wins for an opposing party in midterm elections, which he’s facing this year.

“There’s something down, deep psychologically with the voters that they want, maybe a check or something. I don’t know what it is, exactly,” he said.

He said that one would expect that after winning an election and having “a great, successful presidency, it would be an automatic win, but it’s never been a win.”

Hiring likely remained subdued last month as many companies have sought to avoid expanding their workforces, though the job gains may be enough to bring down the unemployment rate.

December’s jobs report, to be released Friday, is likely to show that employers added a modest 55,000 jobs, economists forecast. That figure would be below November’s 64,000 but an improvement after the economy lost jobs in October. The unemployment rate is expected to slip to 4.5%, according to data provider FactSet, from a four-year high of 4.6% in November.

The figures will be closely watched on Wall Street and in Washington because they will be the first clean readings on the labor market in three months. The government didn’t issue a report in October because of the six-week government shutdown, and November’s data was distorted by the closure, which lasted until Nov. 12.

FILE - President Donald Trump dances as he walks off stage after speaking to House Republican lawmakers during their annual policy retreat, Tuesday, Jan. 6, 2026, in Washington. (AP Photo/Evan Vucci, File)