The U.S. government is intensifying efforts to block illegal transshipments of Chinese products, prompting heightened vigilance within the domestic automotive industry. Concerns are growing that the increasing use of Chinese components could complicate supply chain management.
According to reports from foreign media on August 16, the U.S. White House's Office of Trade and Manufacturing Policy released a report on August 14, highlighting that Chinese products are being illegally transshipped to the U.S. through over 40 countries.
The report classified South Korea, along with Japan, Canada, Mexico, and the European Union, as 'Tier 1' countries at high risk for transshipment of China-linked goods.
The U.S. plans to utilize artificial intelligence (AI) technology to more accurately detect instances where these countries process Chinese products or alter their origin before exporting them to the U.S.
This crackdown is driven by significant tariff revenue losses. The White House estimates that the scale of illegal transshipment of Chinese products ranges from approximately $34.2 billion to as much as $303 billion annually.
According to the Associated Press, the increased enforcement against transshipments is linked to the Chinese government's export support policies, which are destabilizing the automotive, metal, and electronics industries in the U.S. and Europe.
The domestic automotive industry is closely monitoring the U.S. government's actions, especially as mid-sized automakers are rapidly increasing their use of Chinese platforms and components.
Last year, Renault Korea's purchases of vehicles, parts, and technology from China's Geely Group totaled 952.7 billion won, an 82% increase from the previous year. Of this amount, 901.9 billion won was spent on vehicle and parts purchases. KGM has also reportedly paid $84 million (approximately 120 billion won) to China's Chery Group this year.
Given the nature of the automotive industry, the burden of enhanced origin verification is expected to be significant. It is estimated that internal combustion vehicles contain about 30,000 parts, while electric vehicles have over 10,000 parts. As the scope of U.S. verification becomes more detailed, the number of components companies must manage will inevitably increase.
However, analysts caution that it is too early to predict the impact on the domestic automotive industry, as specific application standards and enforcement scopes have yet to be established.
Kim Pil-soo, a professor at Daelim University’s Department of Future Automotive Engineering, stated, "Since a significant number of parts in vehicles are produced in other countries, we need to observe how specific standards are developed."
* This article has been translated by AI.
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