BYD, the world’s largest electric vehicle (EV) maker, is set to launch its latest SUV, the Sealion 07, in Europe, undeterred by recent tariff increases on Chinese-made electric vehicles. This strategic move highlights BYD’s commitment to expanding overseas sales despite economic barriers.

Deliveries of the Sealion 07 are scheduled to begin in 2025, marking BYD’s seventh all-electric model in the European market, the company announced on Wednesday. Additionally, BYD plans to enter the South Korean market next year, adding to its existing presence in 95 countries worldwide.

This European expansion comes on the heels of the European Union’s decision last month to impose new tariffs—ranging from 17% to 35.3%—on Chinese electric vehicles following an anti-subsidy investigation. BYD’s EVs are subject to a 17% tariff, in addition to the standard 10% tariff applied to all pure electric cars imported from China. These tariffs, which took effect last month, will remain in place for five years. Meanwhile, U.S. tariffs on Chinese-made EVs increased from 25% to 100% as of September, citing similar concerns.

Despite the added costs, BYD’s vehicles continue to hold strong appeal in export markets. “BYD’s vehicles remain attractive even after the additional tariffs, so it’s not really a big problem for the company,” said Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, a leading industry consultancy. “The Sealion 07 exemplifies how BYD’s cost advantage enables it to counteract such trade barriers in key export markets.”

Shenzhen-based BYD has yet to disclose the European pricing for the Sealion 07. On the mainland, the SUV—featuring a range of 450 kilometers—starts at 189,800 yuan (approximately US$26,272), with deliveries beginning in May.

According to a report last year from UBS analysts, BYD has a sustainable cost advantage of 25% over traditional European brands.

After last year’s Singles’ Day shopping festival in China was dubbed the “quietest in history,” China’s e-commerce platforms focused on a new strategy this year.

For this year’s Singles’ Day event, major e-commerce companies such as Alibaba, JD.com, and Pinduoduo invested heavily in expanding overseas markets, targeting the estimated 100 million Chinese living abroad with offers like discounts and free or low-cost shipping.

The central question, however, is not whether these efforts will succeed in the short term, but rather if this shift can help platforms grow their user bases as online sales growth in China reaches a bottleneck.

“Domestic consumption is quite weak right now, and every company is certainly considering new ways to drive growth for Singles’ Day,” said an executive at a leading online retailer, who requested anonymity. “The overseas market is widely seen as a promising source for additional growth,” he added in an interview with Nikkei Asia.

Singles’ Day, a one-day sales event launched by Alibaba in 2009 as a celebration for singles, has since evolved into a month-long campaign with special offers and deep discounts, culminating on or around November 11.

This year, China aimed to revitalize its retail sector with the event. Total consumer goods sales rose by 3.3% year-on-year in the first three quarters of 2024, though high-end consumer spending remained stagnant. Cosmetics sales fell by 1%, while gold and silver jewelry sales declined by 3.1% year-on-year.

Last month, Alibaba’s Taobao launched a significant marketing campaign in Hong Kong and Taiwan, flooding subway stations with advertisements for “free shipping on orders over 99 yuan,” among other offers. According to the company, the campaign cost 2 billion New Taiwan dollars ($61.7 million) in Taiwan and 1 billion yuan ($138 million) in Hong Kong.

Following Alibaba’s move, JD.com announced it had invested 1.5 billion yuan to offer discounted product prices and cheaper shipping to Hong Kong shoppers. Bargain platform Pinduoduo took it a step further, offering free shipping via courier SF Express for Hong Kong shoppers, regardless of the item’s price. All products on these platforms are shipped from mainland China.

A spokesperson from Alibaba’s International Digital Commerce Group noted that since the overseas initiative launched in October, Taobao Hong Kong has achieved double-digit growth in both orders and gross merchandise value (GMV)—a metric that excludes canceled orders—on both a monthly and year-on-year basis.

The platforms are also targeting Chinese shoppers in Malaysia, Thailand, and Singapore.

This year, unlike in previous years, shoppers could combine online discounts with a subsidy program introduced by the Chinese government to boost domestic consumption, primarily for home appliances and household products. Analysts suggest these incentives will likely boost sales for JD.com, which is known for selling high-quality large appliances and offering after-sales services.

While JD.com has yet to release sales or GMV figures for home appliances during the shopping festival, it is expected to share its June-September results, along with Alibaba, later this week.

Last year, data provider Syntun estimated that total GMV on major e-commerce platforms grew by only 2.1% to 1.14 trillion yuan, falling short of the 2.9% growth forecast for 2022. Similarly, consultancy Bain predicted that Singles’ Day sales would reach 1.15 trillion yuan in 2023.

On Tuesday morning, Alibaba announced “strong GMV growth” and a “record number” of active shoppers for this year’s Singles’ Day event.

Taiwan is considering a significant U.S. weapons purchase, including Aegis destroyers, in preparation for a potential incoming Trump administration. According to multiple sources familiar with the discussions, Taipei may request Lockheed Martin ships and Northrop Grumman’s E-2D Advanced Hawkeye airborne radar system. Taipei also aims to acquire additional Patriot missiles and may seek F-35 fighter jets, which could spark debate in Washington.

“Taiwan is exploring this package to demonstrate its commitment,” a former Trump administration official told the Financial Times. The official added, “If Taiwan follows through, they can present an assertive defense proposal to the incoming U.S. national security adviser.”

These negotiations are occurring as Trump’s call for allies to increase defense spending has raised concerns among U.S. allies. Elbridge Colby, a former Pentagon official and potential nominee for a senior National Security Council role, also encouraged Taiwan to allocate more to its defense.

A senior Taiwanese national security official informed the Financial Times that informal discussions with the Trump team suggest that a robust arms package would signal Taiwan’s commitment to bolstering its defense.

“Our armed forces have long considered several large platforms and other systems, but they’ve been out of reach. Now, we have ample options to consider,” the official explained.

Another Taiwanese official indicated that Aegis would be a high priority. However, officials and defense experts emphasized that Taiwan could benefit from other essential yet costly equipment with more substantial impacts.

“If Taiwan has a wish list, now is the time to ask for F-35s,” said Su Tzu-yun, a senior official at the National Institute for Defense and Security Studies, a research arm of Taiwan’s defense ministry. Su also mentioned Taiwan’s likely interest in acquiring retired Ticonderoga-class cruisers and Perry-class frigates.

“Taiwan’s focus on increasing its defense investment is on target,” stated Heino Klinck, a former senior Pentagon official from Trump’s first term. Klinck added that spending minimums should apply to partners facing existential threats. However, he stressed prioritizing critical assets like munitions, command and control systems, air and missile defense, and necessary defense reforms.

“Requesting F-35s may not be financially or operationally practical,” Klinck noted.

Insiders revealed that Taiwan might request up to 60 F-35 fighters, four Advanced Hawkeyes, 10 decommissioned warships, and 400 Patriot missiles—a package valued at over $15 billion, according to Su’s estimates.

Rupert Hammond-Chambers, chairman of the U.S.-Taiwan Business Council, acknowledged Washington’s recognition of Taiwan’s progress in defense spending but highlighted more work ahead. He pointed out that Colby has a “laser focus” on Taiwan’s defense budget, adding that a substantial arms package could serve as a strategic starting point with a new administration.

Taiwanese officials downplayed concerns about potential policy shifts in a second Trump administration. “Strong bipartisan support for Taiwan is evident,” said a second official to the Financial Times. “This support is reflected in ongoing legislation and resolutions to reinforce U.S.-Taiwan relations.”

During Trump’s first term, arms sales to Taiwan included 11 packages totaling $21 billion for assets like F-16 fighters and Abrams tanks. The Biden administration has also approved deals worth $7 billion, advocating for Taiwan to allocate funds toward stockpiling ammunition and mobile weapons suited for deterring superior forces rather than larger traditional systems.

The Taiwan arms package is coordinated by two experienced U.S.-Taiwan veterans, Vice President Hsiao Bi-khim and National Security Adviser Joseph Wu. When questioned, Karen Kuo, spokesperson for Taiwanese leader Lai Ching-te, declined to confirm whether senior officials had discussed specific arms procurement proposals with Trump’s team.

Faced with an escalating military threat from China in the Taiwan Strait and surrounding regions, Taiwan and neighboring countries are strengthening their defenses, Kuo noted.

Trump’s transition team did not respond to requests for comment. Meanwhile, the Chinese Embassy in Washington urged the U.S. to “halt arms sales and military ties with Taiwan,” cautioning Taiwan’s Democratic Progressive Party against “attempting to increase military capabilities to secede by relying on outside forces, risking regional conflict and war.”