Prospects for Chinese Electric Vehicles in the US Market: The Case of BYD

Chinese electric vehicle manufacturers have expanded rapidly worldwide, yet the United States remains a highly restrictive market. This paper examines the prospects for Chinese EV entry into the US through a case study of BYD, the world’s largest producer of plug-in electric vehicles. Using the framework of non-market strategy, it analyzes how trade policy, national security concerns, regulatory barriers, and consumer perceptions jointly shape market access beyond standard economic competition. The study reviews key US legal constraints, including Section 301 tariffs, vehicle safety compliance rules, and restrictions on connected vehicle technologies, which together render direct passenger vehicle imports from China commercially unviable. It further situates these barriers within a broader political climate characterized by rising protectionism and skepticism toward Chinese brands. Despite these challenges, the paper argues that Chinese EV firms are not fully excluded from the US market. Through localized production, subsidiary restructuring, policy advocacy, and engagement with labor unions and local stakeholders, firms like BYD can sustain a limited but strategic presence. The paper concludes that deep localization and long-term non-market strategies offer the most viable path forward under current conditions.