Chinese automakers are trying to aggressively expand overseas, despite major obstacles in some of the world's largest markets.
The Wall Street Journal's Ryan Felton and Stephen Wilmot report that companies such as BYD, Li Auto and Changan are selling luxury SUVs, pickup trucks and fast-charging electric vehicles. Their hope is the offerings will help them aggressively expand overseas and offset slowing sales and increased competition at home.
But many of the car companies face the major hurdle of being shut out of the lucrative U.S. market. High tariffs and software restrictions have effectively blocked Chinese cars from being imported.
The automakers instead are focused on selling to Europe, even as they face new restrictions in that market as well.
The Journal's Brian Spegele and Kim Mackrael write that China is going along with a European Union plan to cap hybrid-vehicle imports, which bloc officials said should cut their volume by more than half.
China's export machine has looked all but unstoppable. But the country's reliance on exports to support its otherwise struggling economy means Beijing can't afford to lose access to the European market.
European leaders are expected on Thursday to push for additional measures to constrain Chinese imports.
Quote of the Day
"We don't need the U.S. market to be number one."Stella Li, BYD's executive vice president
Manufacturing
GlobalFoundries plans to build two new chip plants in New York using an unusual source of funding: Japan.
The chip manufacturer said it would use up to $21 billion from Japan under the country's commitment last year to invest $550 billion across strategic U.S. industries such as energy, semiconductor manufacturing and shipbuilding.
The Journal's Kelly Cloonan writes that the factories will help the company grow U.S. manufacturing capacity and meet rising demand across the automotive, industrial and connected infrastructure markets. The fabs will be built in Malta, N.Y., near Albany.
(GlobalFoundries') customers include Apple and Cirrus Logic.
The U.S. has sought to strengthen its domestic chip-making capabilities over the past few years to shore up supplies of a component critical in everything from smartphones to data centers. The U.S. is home to leading companies developing semiconductor technology, but many of the chips today are made in East Asia.
-- ASML Holding plans to boost production of its semiconductor-making machines. (WSJ)
Number of the Day
92%
Percentage of supply-chain leaders surveyed by the Association for Supply Chain Management and the Digital Supply Chain Institute who are concerned about cybersecurity risks around AI.
In Other News
Consumer prices were up 3.7% in September. (WSJ)
Chinese exports climbed 36.3% in September. (WSJ)
China's factory-gate prices rose at their fastest pace since June 2022 in September. (WSJ)
A shortage of diesel is set to last into 2027, said the International Energy Agency. (WSJ)
Houthi militants are attempting to produce their own advanced medium-range ballistic missiles using Chinese-delivered parts. (WSJ)
Two Emirati cargo ships sank after being struck in the Strait of Hormuz. (WSJ)
U.S. forces destroyed an Iranian-affiliated dhow in the Gulf of Oman after determining the vessel was conducting surveillance. (gCaptain)
Natural-gas exporter Venture Global is joining the race to provide power to the AI boom, aiming to build gas-fired generation at its facilities to supply electricity to data centers. (WSJ)
TotalEnergies expects to report exceptional third-quarter results from its downstream business after refining margins jumped. (WSJ)
The Federal Maritime Commission plans to impose a fee of $200,000 per port call on Spanish-flagged vessels. (ShippingWatch)
Truck stop operator Pilot opened charging sites for Tesla Semis in California and Georgia. (Commercial Carrier Journal)
New York City is awarding $5 million to businesses who move daytime deliveries to overnight. (Supply Chain Dive)
DHL Express transported four rescued manatees from zoos in Ohio to Florida. (WKRC)
About Us
Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
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