Summary of Key Points
Waymo, Google's autonomous driving company, has been importing a large number of Ojai models (a derivative of the Krypton Mix) from Chinese manufacturer Krypton for use in its Robotaxi services in the United States, which has sparked widespread outrage among American netizens. Ordinary consumers are unable to purchase cost-effective electric vehicles from China due to high tariffs and policy restrictions, while companies can legally import these vehicles by exploiting loopholes in the regulations and making modifications. This incident highlights the high prices in the American automotive market, the insufficient competitiveness of local car manufacturers, and the advantages of Chinese manufacturing in the field of automotive hardware. It also reflects the division of labor in the autonomous driving industry chain between China and the United States: China provides the hardware platform, while the US holds the core software.
Netizens' Anger: Why Can Companies Buy Chinese Cars, but Not Us?
American netizens are very direct in their frustration: "These are also Chinese electric vehicles, but only Waymo can import them in large quantities, while ordinary people can't even touch them."
The US has imposed a 127.5% tariff on Chinese electric vehicles (301 Section tariffs of 100% plus a strategic surcharge of 25% and a standard tax of 2.5%), and has banned the import of connected Chinese vehicles on the grounds of "safety risks." Ordinary consumers have no chance of buying Chinese cars, but Waymo can import them in bulk. Netizens complain, "Capitalists can do it, so why can't we?" "The government is protecting local car companies while giving big corporations special privileges!" Even Forbes has voiced criticism of this double standard.
American Consumers Craving Chinese Cars: Low Price, High Quality, but Unavailable
American consumers' desire for Chinese cars is not unfounded—local cars are too expensive, while Chinese cars are more affordable. In 2023, the average price of a new car in the US was $47,000, and it is expected to rise to $52,000 in 2024, with 60% of families unable to afford a new car. In contrast, Chinese cars in Mexico (which has opened its market to Chinese cars) such as the BYD Sea Owl cost $20,000, the Geely Xingyuan $18,000, and the Leapmotor B10 less than $30,000. With the same budget, Americans can only afford fuel-efficient, lower-quality Toyota pickups. What's more infuriating is that Mexicans can drive Chinese cars on vacation in the US, leaving Americans to watch helplessly. Some consumers have even formed groups to discuss "indirect ways to buy Chinese cars," such as purchasing used cars from Mexico and transporting them back to the US.
Waymo's "Privileges": Legally Bypassing Regulations and Saving Money
Waymo's ability to buy Chinese cars is not due to special privileges, but rather by exploiting policy loopholes and carefully calculating costs:
1. Policy Exemption: Waymo and Krypton signed a contract in 2021, before the new US regulations banning connected Chinese vehicles took effect, so the contract continued to be valid.
2. Bypassing the Ban: The imported Ojais are "bare cars"—they only have the chassis and the electric powertrain (battery, motor, and controller), without sensors or connectivity equipment. In the US, Waymo installs its own autonomous driving systems (cameras, lidar, etc.), making them not considered "connected Chinese vehicles" and thus avoiding the ban.
3. Cost Advantage: The declared value of the Ojai is $38,000, which, after adding tariffs, becomes $86,500. Adding another $20,000 for the autonomous driving system brings the total cost to $110,000. In contrast, Waymo's previous Jaguar I-PACE modified cars cost over $200,000 and have since been discontinued. Using Chinese cars has significantly reduced costs, which is why Waymo has been importing them in large quantities (nearly 2,600 in the past 8 months, nearly matching the size of its previous fleet).
The Truth Behind the Scenes: Chinese Manufacturing Is Strong in Hardware, but Core Technology Remains in the US
This incident is not about Chinese car brands entering the US market; rather, it shows how Chinese-made hardware platforms are being integrated into the US technology chain. The Ojai was specifically designed for Robotaxi use by Krypton, with features like B-pillar-free sliding doors and a flat floor that make it more suitable for passenger transport than modified Jaguar cars. However, the key autonomous driving systems (the "brain" and sensors) are still developed by Waymo. This indicates that while China has strong capabilities in automotive hardware (especially for electric vehicles), the US still holds the core technology for autonomous driving. For the three major Detroit car companies, this is particularly embarrassing, as their local cars are both expensive and unsuitable for autonomous driving, leaving them unable to compete with Waymo using Chinese-made vehicles.
The Dilemma of the American Automotive Market: Protectionism Cannot Hinder Demand
The US government is using high tariffs and bans to protect local car companies, but market demand cannot be ignored. Local car prices are rising (General Motors and Ford average $54,400), and the proportion of affordable cars has dropped from 21% to 5%. Chinese cars, with their high cost-effectiveness and user-friendly features (such as Braille buttons and sliding doors), are highly sought after. Even US dealers admit that if Chinese cars were allowed, they would be quickly sold out. This protectionism not only harms consumers but also may cause local car companies to lose competitiveness and fall further behind.
In summary, the incident of Waymo importing Chinese cars reflects China's manufacturing strength and the contradictions in the US automotive industry. While policies can protect local companies for a while, they cannot suppress consumers' desire for cost-effective products.