Inside China's EV capital

China's industrial strategy includes becoming a dominant player in EV manufacturing, and one Chinese city is now home to five of those car plants. Eunice Yun takes us inside China's EV capital, and she joins us right now with more. Hi. Hi, Eunice. Hey, Becky. Well, you know, just this weekend, G7 nations criticized China for what they described as it's harmful over capacity. And as I found out in southwestern China, you could understand their concerns. If you're interested in a Chinese EV, you might want to visit Liu Zhou in China's SW. This city of 4 million people in the province of Guangxi brands itself as an EV capital, and for good reason. Liu Joe last year produced almost half a million electric vehicles of all types. Some were made at this Ooling new energy factory managed by 30 year auto veteran Yu Hong Chow. Liu Joe is very competitive as a city for new energy vehicle manufacturing, he says. First, the cost of manpower is very low. Second, the logistics cost is low. Third, the industrial foundation is there. Yujo is home to five major state backed car makers, including ruling's parent Guangxi Auto. We're on our way to another automaker, Ichi. It's famous for making a car that's used by the government elite called the Hongqi. About a mile away is another company making E VS Dongfeng Yujo Motor and SAIC, whose joint venture with GM and Guangxi Auto produces a popular $4000 EV. Liu Jo stated AIM has been to produce more than 3,000,000 E VS a year by 2025, but it's fallen short. Data from Japanese auto research firm Mark Lines shows the city's factories could have the capacity to produce roughly three times as many E VS as they currently are. Liu Jo hopes to Rev up exports, now at 1% of production used Companies set up an overseas department last month, despite international criticism of China's overcapacity. It's groundless, he says. If your cost is low thanks to your scale and your price is more competitive, anyone can compete, right? What the Chinese see as competitiveness, many other countries view as unfair trading practices. In fact, the US, Europe, Turkey, among other countries have all been raising tariffs on Chinese E VS and now the Chinese are threatening retaliation. Becky. Yeah, Eunice, we, we talked earlier with the head of an American manufacturing group just laying out their reasoning for thinking that tariffs need to be even higher. What what will the Chinese do in response to those tariffs, you think? Well, it's difficult to say for sure, but we already have one example of what they could do in this type of situation. As you all know, the Europe had raised tariffs last week coming close to about 50% on Chinese E VS And today the Chinese Commerce ministry announced that they would launch an anti dumping investigation into EU pork and pork products. It could last but about 18 months or so, but still those tariffs could be coming in. Spain just today announced that they're hoping for some sort of negotiation.