Jeep Withdraws From Chinese Market, Accusing the CCP Government of Meddling in Its Business

Comment: Foreign-invested enterprises in Communist China have pulled out their capitals more and more rapidly in the past two or three years. With orders mostly shifting to other countries in Southeast Asia for production, they clearly felt all kinds of pressure from Chinese Communist Party (CCP) officials, as well as the terrible “Zero-Covid” policies. Once the factory moves away, the possibility of moving back is tiny. The most obvious outcome is increased unemployment, and the victims are still ordinary people because the mortgages and car loans still require repaying ……

According to the report, Jeep has been facing increasing interference from the CCP officials and decided to close its only plant in Communist China. The CEO of Stellantis said in an interview that the automaker had adopted an “asset-light” approach in the country due to fears that escalating political tensions could lead to sanctions in disputes between Communist China and other countries around the world. The CEO made clear that the company does not intend to be a “victim” of cross-sanctions like companies in other parts of the world where political tensions are intense.

The CEO’s public remarks corroborate Stellantis’s statement last week that it would end a 12-year partnership with the government-owned Guangzhou Automobile Group. The closure of factories has raised questions about the future of foreign manufacturers in this country.

It is important to note that the world is facing disruptions in the supply chain due to increased political tensions in the world and the Russia-Ukraine war. In addition, the sanctions against Russia may be a prelude to the prospects for manufacturers in Communist China.

It is reported that automakers like Stellantis, Volkswagen, and General Motors are having an increasingly difficult time doing business in China as local producers like BYD, Li Auto, and XPeng Motors are quickly catching up, including a variety of all-electric options. Jeep has been the producer of various widely sold models, such as the Cherokee, Renegade, and Compass, which are widely sold in international markets.

Notably, Communist China is one of the largest auto markets in the world and has been a source of growth for both domestic and international companies. Further evidence is that more than 2 million cars are sold nationwide each year.

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Translator: MOS English Team — Jack H
Design&editor: HBamboo(昆仑竹)

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