As Chinese auto exports increase rapidly, the scrutiny by foreign governments may intensify. Beijing is likely to use a wide range of tools to fight back while continuing support for its auto industry.

News reports indicate that certain Volkswagen luxury brands have seen imports into the U.S. held up at ports due to concerns about components made in Xinjiang using forced labor.

In a statement published this week, the China Association of Automobile Manufacturers urged the European Union to use caution in its anti-subsidy investigation, warning that it may harm the EU EV industry and global carbon neutrality goals.

Recently, the Chinese government issued several drafts of mandatory national standards for automobiles, including on cyber security and management systems, as well as on data recording systems. One of the drafts touches on vehicle designs and settings that would allow cross-border data transfer.

Last week, China's market regulator published a notice stating that Tesla had filed a plan to recall over 1 million vehicles sold in China between 2019 and 2023.

Last week, the Beijing High People's Court issued a final ruling on a civil case brought against Tesla for a fraudulent sale. The Court sustained the rulings of the lower courts, which ordered Tesla to refund 379,700 yuan to the consumer, and pay 1.14 million yuan

Earlier this week, Senate Finance Committee Chair Ron Wyden (D-OR) "ramped up his investigation into auto supply chain links to forced labor in the Xinjiang region of China, with new questions for automakers and tier 1 suppliers."