Short-Run Effects of U.S. Tariff Policies on China's New Energy Vehicle Industrial Chain and China's Responses: A Specific Factors Model Perspective

This paper examines the short-run impact of U.S. tariffs on China's new energy vehicle (NEV) industrial chain and evaluates enterprise and government responses. Drawing on the Specific Factors Model, it uses descriptive trade and policy analysis. Complete vehicle exports to the U.S. virtually ceased, battery exports declined, and upstream minerals faced indirect pressure. Enterprise measures—supply chain localization, R&D investment, and market diversification—along with government policies such as tax exemptions and RCEP utilization, appear to have partially mitigated the shock. The paper contributes a sector-specific short-run application of the Specific Factors Model and highlights causal identification challenges for future research. This paper concludes that although the U.S. market is largely closed to Chinese NEVs, the industry has adapted through factor reallocation and market redirection.