Former Canadian diplomat Michael Kovrig has a deeply personal understanding of China's use of leverage to assert global power. That's because China actually used him as leverage during President Donald Trump's first term, amid U.S.-China-Canada tensions.
In 2018, Trump ordered that Chinese executive Meng Wanzhou be extradited to the U.S. Canada obliged, arresting Wanzhou in Vancouver.
Beijing immediately retaliated against Canada, arresting Kovrig in China, where he was imprisoned for nearly (1) three years until Canada released Wanzhou in 2021.
Now Kovrig is warning the world that China's cheap electric vehicles (EVs) are another form of leverage in its push for global power.
"They want to control the tech stack, and then use control of that tech for geopolitical dominance and leverage," Kovrig warned.
That's why he has criticized (2) Canada's new deal with China that will allow 49,000 Chinese EVs into Canada at a low 6.1% tariff in exchange for China easing duties on Canadian canola, seafood and peas.
Kovrig believes the deal will lead to unfair competition and the slow erosion of Canada's industrial base.
In contrast, President Trump believes Chinese EVs could be good for the U.S. While he refuses to let Chinese EVs flood the U.S. market via Canada, he said he would welcome Chinese automakers like BYD and Xiaomi into the U.S.
"Let China come in (3)," he told the Detroit Economic Club in January.
But as he made clear, it's on one condition (3).
Chinese EVs, made in the U.S.
Trump isn't interested in imported Chinese EVs. He's interested in made-in-the-U.S.A. Chinese EVs.
"If they want to come in and build a plant and hire you and hire your friends and your neighbors, that's great, I love that," he said. "Let China come in, let Japan come in."
Building Chinese factories on American soil means more jobs (even as manufacturing becomes increasingly automated), more U.S. tax revenue and cheaper cars for Americans.
A January AutoPacific poll found 76% of Americans under 40 years would consider buying a Chinese-made car (4). The average new car in the U.S. now costs more than $48,000, while Chinese manufacturers are selling feature-rich EVs with enough features to compete with Western equivalents for $8,000 to $42,000 (5).
That's why reviews of BYD, Xiaomi and Zeekr vehicles are already flooding American TikTok and YouTube (6) as Bloomberg Businessweek reported. Car influencer Richard Benoit flew to Alaska to test-drive Chinese EVs shipped onto U.S. soil.
His video — "I drove the cheap Chinese cars that are illegal in the USA. Now I know why" — has nearly 2 million views (7).
"The second I mention a Chinese car, the videos skyrocket," he told Bloomberg (6). "Americans want these cars — they just do."
The catch Trump's invitation doesn't address
The 100% tariff on Chinese-made EVs, first imposed under Biden and maintained by Trump, is still in place. There's also the U.S. Department of Commerce rule that effectively bans Chinese software and hardware from connected vehicles sold in the U.S. — software by 2027, hardware by 2030 (8).
Any Chinese-owned factory building cars on American soil would still need to strip out Chinese tech to sell them domestically.
That's the part Kovrig is warning about. He said Chinese companies could sidestep full manufacturing by shipping knockdown kits (9) (flat-pack car parts assembled locally) which creates almost no domestic technology transfer or supply chain development.
"They want the whole tech stack," he said.
And he isn't without reason. BYD sold 2.26 million battery EVs in 2025, overtaking Tesla's 1.64 million to become the world's top EV seller for the first time (10), and it's currently building factories in Hungary, Brazil, Turkey and Thailand.
Chinese battery maker CATL alone holds 39.2% of the global EV battery market, alongside BYD's 16.4%, the two Chinese companies control 55.6% of global EV battery supply (11).
Kovrig is saying that by the time a Chinese EV rolls off a line in Tennessee, the batteries, software platform and charging standards may already be Chinese.
Does this mean you can finally buy a car?
Yes, if Chinese EVs eventually get into American showrooms, whether they're built here or imported, the most direct effect is downward pressure on new car prices, which have been stuck above $48,000 on average.
There would be more competition in the affordable EV segment that would give buyers options in the $20,000 to $35,000 range.
Kovrig's warning and Trump's invitation aren't mutually exclusive. Cheap cars are genuinely good for consumers but strategic dependency is also something to worry about.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
YouTube (1),(7); Bloomberg (2),(6); InsideEVs (3); AutoPacific (4); The Next Web (5); U.S. Bureau of Industry and Security (8); The Hill (9); Carbon Credits (10); CNEVPost (11)
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Godwin Oluponmile is a content specialist, SEO strategist and copywriter with seven years of expertise in finance, Web 3.0, B2B SaaS and technology.
