U.S. governor roars, Elon Musk and Trump team up, handing over the strategic high ground of the next decade to China

（Source: War Situation Watch）

California Governor Newsom publicly berated Elon Musk in front of everyone, saying his “heart is shattered,” accusing him and Trump of teaming up to botch America’s electric vehicle industry, and watching as China takes down 70% of the global market—handing over the strategic commanding heights for the next decade on a silver platter!

Recently, in an interview, Newsom’s remarks revealed America’s industrial anxiety. As one of the earliest Tesla owners and a steadfast supporter, he has witnessed how California policies paved the way for Musk, turning him from an innovator into a billionaire. But now, this big shot whom he once called “a contemporary Edison” has stepped on the brakes for EV innovation, pivoted to the robotics field, and stood by as the United States falls further behind in this global race, step by step.

Newsom’s anger is not without reason. He nailed the key point in one sentence: this is not only Musk’s personal shift, but also a strategic failure of the Trump administration. The United States should have concentrated its strength to seize the EV track; instead, its internal coordination was chaotic, giving China the opportunity to rise. Now China’s EVs and plug-in hybrid models already account for more than half of total vehicle sales, Southeast Asia’s market penetration rate has also reached 40%, far exceeding levels in the UK and Europe, and 70% of the global EV market is firmly controlled by China. Behind this is a complete supply-chain layout and solid technical advantages.

What is even more unsettling to American politicians is that China has directly brought production lines to near the doorstep of the United States. Canada announced this January that it would allow 49k domestically produced Chinese EVs to enter the market each year with preferential tariffs; in February, it doubled down—drawing Chinese companies to set up factories in Canada to produce EVs for the global market. This means Chinese EVs don’t need to detour; they can radiate across the North American market, and the plan for the U.S. to block competition through tariff restrictions has completely fallen through.

To make matters worse, with the U.S. and Israel carrying out attacks on Iran that sent oil prices surging, a wave of EV rush-buying has swept the world—and Chinese companies have become the biggest winners. With advantages including affordable pricing, reliable range, and stable supply chains, Chinese EVs have seen a surge in overseas orders. By contrast, American automakers are either constrained by chip shortages or unable to keep up with technological iteration, and can only watch as the dividend is taken away.

In fact, the lag of America’s EV industry had been foreshadowed long ago. After the Trump administration took office, on the one hand it pushed trade protectionism and imposed additional tariffs on Chinese EVs—yet it ended up forcing American consumers to bear higher prices; on the other hand, it lacked systematic support for the new energy industry, causing America’s traditional automakers to slow down their transition. Tesla alone became dominant, but it still could not carry the whole load by itself. Now that Musk has turned directions, America’s EV industry is even worse off.

Newsom sees this very clearly: this competition is fundamentally not just a contest in the auto industry, but a game over economic security and global strategy. China has treated the EV industry as a governing strategy to build from the ground up—ranging from lithium mine extraction to battery production, from complete-vehicle manufacturing to charging networks—forming advantages across the entire industrial chain. But the U.S. is still consuming itself internally. With no unified industrial policy and no long-term planning, losing to China is, in truth, inevitable.

Now, in the United States, it’s hard to even catch up. Chinese EVs are not only taking territory in global markets, but are also continuously breaking through on technology, with battery energy density rising step by step and autonomous driving technology growing increasingly mature. In contrast, in the U.S., aside from Tesla, other automakers in the EV field have almost no products that can really stand out. Moreover, their supply chains are heavily dependent on imports. To patch the shortcomings in a short time is basically as difficult as climbing to the heavens.

Newsom’s “heartbreak” is, at its core, a snapshot of the decline of American hegemony. When a country loses strategic steadiness and focuses only on infighting and short-term interests, even the best hand of cards can end up being played into ruin. China, relying on sustained investment and long-term planning, has achieved a “curveball” overtake in the EV sector. This is not only a victory for industry, but also a victory for its development model. If the U.S. still doesn’t wake up, in the future it will only lose more strategic commanding heights.

Part of the materials sourced from: Observer Network (Guanchazhe)

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