EVs, tariffs in the spotlight as Chinese automakers take leading role at Shanghai auto show

SHANGHAI (AP) — Leading automakers are showcasing their latest designed-for-China and the world models at the Shanghai auto show this week, fighting not to be edged aside in the world’s largest car market while watching for U.S. President Donald Trump’s next steps in his trade war.

This year's show in the sprawling industrial outskirts of Shanghai comes at a pivotal moment. Three decades after Beijing set out to build a world-class auto industry, local manufacturers account for about two-thirds of sales inside China, and a growing share of global exports.

But with U.S. President Donald Trump raising tariffs and the European Union slapping duties on Chinese electric vehicles, selling to some overseas markets is growing increasingly challenging.

“Geopolitics are very complex and the situation remains uncertain,” Wei Jianjun, chairman of Great Wall Motors, told reporters Wednesday. “But Great Wall is always exploring investments in overseas markets.”

The exhibition is holding two media days and two trade days before it opens to the public on Sunday. It runs until May 2.

Encouraged by government subsidies for scrapping older cars for the latest models, Chinese drivers have embraced the switch to electrics, with sales of battery powered and hybrid vehicles jumping 40% last year.

A total of 31.4 million vehicles including buses and trucks were sold last year in the world’s biggest market by sales, up 4.5% compared to a year earlier, the China Association of Automobile Manufacturers reported.

Growth in sales of EVs was offset by falling sales of traditional gasoline and diesel-powered vehicles, which still accounted for just over half of new car sales.

Chinese electric vehicle maker BYD nudged past Tesla as the world’s biggest maker of EVs by sales last year, reporting revenue of over $100 billion. It recently announced an ultra fast EV charging system that it says can provide a full charge for its latest EVs within five to eight minutes, about the time needed to fill up at the pump. It plans to build more than 4,000 of the new charging stations across China.

To gain access to China's potentially huge market, foreign automakers like Volkswagen, General Motors, BMW and Ford set up joint ventures with state-owned local companies beginning in the 1980s and '90s, helping them build the capacity and technology to compete on a world scale.

They also created sprawling supply chains in Shanghai and other major manufacturing hubs, helping to nurture other big names in Chinese automaking, such as BYD, Geely and Great Wall Motors.

With growth at home limited by brutal competition, they're expanding rapidly especially in Southeast Asia and other developing economies with relatively affordable sedans, SUVs and pickup trucks.

Shanghai’s auto show is a gathering for the “survival of the fittest,” said Zhou Lijun, director and chief researcher of the industry analysis group Yiche Research Institute.

That doesn't mean all the EV makers go it alone. BYD teamed up with Daimler, now the Mercedes-Benz Group, to launch its Denza premium brand. It's also challenging Toyota and other top tier brands with its luxury Yangwang brand, priced at up to 2 million yuan ($280,000)

Opening markets wider to foreign competition has given car buyers a choice of more affordable, innovative vehicles. That's a mixed blessing for older automakers like GM, Ford, Toyota and VW that are also fighting a battle of attrition in China.

“China is still a market worth fighting for,” said Oliver Zipse, chairman of the BMW Group, which like other automakers highlighted a “In China, for China,” approach, at “China speed.”

Overhanging the upbeat talk in Shanghai by both Chinese and foreign automakers of manufacturing in China for the world are Trump's tariffs of up to 145% on Chinese goods, despite a 90-day pause that has spared many other countries, and 25% U.S. tax on imported cars and auto parts.

Japanese automaker Nissan Motor Co.'s head of China operations, Stephen Ma, said the company plans to make 10 new battery electric or hybrid models by 2027 in China, for China and for “export to the world, except one country — you can guess which one."

Higher U.S. and European tariffs on foreign-made EVs are prompting Chinese newcomers to shift production closer to those markets as more Western consumers opt for the latest Chinese models.

Just a few decades ago, Nissan, Toyota and other Japanese automakers were fighting trade friction with the United States over their own exports. Now, they employ hundreds of thousands of U.S. workers at their U.S. factories.

“The trade war between China and the United States has blocked direct exports from China to the United States, but it hasn't blocked local production there or the establishment of global production bases in Europe or elsewhere," Zhou said.

A report by the Rhodium Group shows that nearly half the world's markets are restricting imports from China, in part because of national security concerns linked to the advanced electronics in EVs and other high-tech vehicles. A minority of countries like Australia and South Africa remain relatively open, and Russia is a major market but is nearly saturated, it says.

Chinese automakers lag behind global leaders like Toyota in conventional gasoline and diesel fueled vehicles, but they can sell EVs at roughly the same price, while also solving the problems of range and fast charging.

China has become part of what geopolitical analyst Yanmei Xie described as a “technological paradigm shift” in a commentary in the Japanese financial publication Nikkei Asia. Automakers in China are going electric not just because of the green transition, but as a route to “technological and industrial dominance,” she wrote.

EV makers in China have benefited from not having huge legacy operations that have to make the transition, said Stefan Sielaff, vice president of global design for EV maker Zeekr Group, part of Geely's stable of brands. Founded in 2021, it's selling cars in more than 80 markets including in Europe.

“They can immediately react to market demand, to customer demand, and can deliver very, very fast,” he said. “We have done most of these cars in two years. From 0 to 100 in two years.”

AP researcher Yu Bing contributed.

A man films near a special Black Myth:Wukong edition of a Tang L model from BYD during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

Visitors look at the new Firefly model from Chinese automaker Nio during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

Staff from Chinese automaker Nio waits for visitors at their booth during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

An executive from Chinese car manufacturer Geely talks the satellite communication capabilities of its Galaxy Cruiser during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

Oliver Zipse, Chairman of the board of management of BMW AG, speaks during a press conference for BMW at the Shanghai auto show, Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

Exhibitors prepare for an unveiling at the Auto Show in Shanghai, Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

A BYD Han L car model inspired by Black Myth: Wukong is displayed at the Auto Show in Shanghai, Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

Visitors look at the Han L EV model from BYD during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

A man dressed as the character from Black Myth:Wukong promotes a special edition Han L model from BYD during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

An executive from Nissan unveiled the Frontier Pro, a plug-in hybrid, during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

An attendee arrives to the Auto Show in Shanghai, Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

A man talks near the Han L EV model from BYD during the Shanghai auto show on Wednesday, April 23, 2025. (AP Photo/Ng Han Guan)

The ID Aura concept car is shown during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Attendees look at the latest cars from Volkswagen Group during the media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Attendees look at the latest cars from Volkswagen Group during the media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

A concept car is shown during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Ralf Brandstatter, Chairman and CEO of Volkswagen Group China, speaks during the media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Volkswagen executives and guest pose for photos during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Performers take part in the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Performers take part in the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Performers take part in the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

The Audi E5 Sportback is launched during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Olive Blume, Chairman of the Board of Management of Volkswagen Group speaks during a media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

Olive Blume, Chairman of the Board of Management of Volkswagen Group, speaks during a media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

A concept car is shown during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

The A6L-etron is launched during the Volkswagen Group media night ahead of the Auto Show in Shanghai, Tuesday, April 22, 2025. (AP Photo/Ng Han Guan)

WASHINGTON (AP) — A new humanitarian organization that has U.S. backing to take over aid delivery to starving civilians in Gaza said Wednesday that it expects to begin operations before the end of the month — after what it describes as key agreements from Israeli officials.

A statement from the group, called the Gaza Humanitarian Foundation, identified several U.S. military veterans, former humanitarian coordinators and security contractors that it said would lead the delivery effort. Many in the aid community believe it is meant to supplant the distribution system now run by the U.N. and other international aid agencies.

The foundation failed to address much of the criticism and unanswered questions that the international community has about the group, including who would fund the work and how much involvement the U.S., Israel or any other government or military would have in controlling life-saving aid for Palestinian civilians.

In an interview Wednesday with The Associated Press, Tom Fletcher, the U.N. humanitarian chief, said the U.S.-backed proposal is “far from being able to meet” the conditions of humanitarian law.

“That’s why we need to stick to the better plan, our plan A, which is just let us in. We can make sure this aid doesn’t get anywhere near Hamas,” Fletcher said, referencing Israeli accusations that the militant group is diverting supplies. “We have our procedures. We care more than anyone about making sure that it gets to the children and civilians and women who need it most.”

Israel has blocked food, fuel, medicine and all other supplies from entering Gaza for weeks, worsening a humanitarian crisis for 2.3 million Palestinians. Israel says the blockade aims to pressure Hamas to release the hostages it still holds and that it won’t allow aid back in until a system is in place that gives it control over distribution.

The U.N. and many aid groups have rejected Israel’s efforts to control aid distribution, saying it would be all but impossible for a new startup group to meet the humanitarian needs of Gaza civilians after 19 months of food shortages and war.

Aid groups say they also fear the attempt would violate humanitarian principles of operating independently with neutrality and impartiality.

In Wednesday's statement, foundation executive director Jake Wood, a U.S. military veteran and co-founder of an existing disaster relief group called Team Rubicon, said the commitment to starting operations within weeks follows discussions with Israeli officials.

Wood indicated Israelis had agreed to allow the foundation to deliver aid through existing systems in Gaza temporarily while the group builds new distribution sites that Israel has demanded for aid.

Israelis also have agreed to allow more sites to be constructed to allow aid distribution in all of Gaza, and look for ways to get aid to those too malnourished, maimed by fighting, too old or too young to travel long distances to one of the aid sides, the foundation's statement said.

The foundation was in the “final stages” of gathering enough aid to serve 300 million meals in the first 90 days of operation, Wood wrote.

Israel’s mission to the United Nations didn’t immediately respond to messages seeking comment about the foundation’s statement.

Amiri reported from the United Nations.

Palestinians evacuate after the Israeli army issued an evacuation warning for several schools and a hospital in Gaza City's Rimal neighborhood, Wednesday, May 14, 2025. (AP Photo/Jehad Alshrafi)

Palestinians evacuate after the Israeli army issued an evacuation warning for several schools and a hospital in Gaza City's Rimal neighborhood, Wednesday, May 14, 2025. (AP Photo/Jehad Alshrafi)