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Chinese cars are pouring into Mexico — and the U.S. is worried - Autoblog
(www.autoblog.com)
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this post was submitted on 16 Jun 2024
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FTFY. While the Chinese government has made major investments in technology, the problem is their excessive subsidies which are allowing Chinese manufacturers to artificially out-compete their competitors. As others have pointed out, it's the same as "Big-Tech Disruptors" who begin with unsustainable prices, and once all their competitors leave the market they raise their prices.
Are Chinese subsidies really excessive compared to American subsidies? Tesla owes its entire existence to the government giving it carbon tax credits among other subsidies. Every single qualifying electric vehicle has been getting thousands of dollars in the form of tax credits all the way up to $7500 and it's only been more generous now since it can be used as a rebate right at the dealership. American car companies have taken that to mean they can jack up prices by those thousands of dollars and even more, because they still treat EVs as mainly premium products.
If you want to talk about artificially out-competing competitors, the 100% tariff is a prime example. The US has dragged its feet on technologies like EVs so they can juice profits and now it's crying and shrieking about competition being "unfair" for providing customers with a desirable product in a desirable price range. This protectionist policy not only sets back the fight against climate change, but also tightens the screws on customers who are already feeling the weight of inflation, just to continue the record profits by the auto companies.
They're not, American cars are not competitive because US auto makers have relied on financialization and oligopolistic tactics.
America COULD build good affordable cars but that's way harder than just doing another stock buyback.
Sorta like how the US runs the petroleum markets? You should go look at how they deal with softwood lumber too. Multiple WTO complaints for unfair trade practices. The US chose where they want to pour their subsidies and so has China.
I'm Canadian, so I'm well versed in softwood lumber dispute. However, we're talking about EVs.
We're talking about EVs and not comprehending my post, apparently.
I'm just not sure what your argument is. Since the US practices unfair trade in one industry, China should be allowed to in other industries? I don't know if you missed this lesson in second grade, but, "Two wrongs don't make a right."
It's not a matter of "allow", it's a matter of what governments choose to subsidize. There's no point in getting pissy at China for subsidizing an industry to the detriment of other countries when the US actively does it in other industries. The US could do the same with batteries and EVs, but there's no political will.
They're not excessive subsidies. It's USA and Europe that are not subsidising EVs enough.
Any country or car maker that does not get on board with decarbonisation of the transport sector needs to be shut down asap.
You might be somewhat right, however I would prefer that money going towards public transport and whatnot.
Alltough my guess is it will just be burnes in some shit like drone taxis.
America is the largest oil producer in the world. It should not be a surprise the incentives to move to EV is not big. The longer we are all addicted to oil, the more money America and fossil fuel giants make.
China does not have much oil in the ground. They are investing in EV and renewables because it allows them independence from the oil lobby. Which is a very welcome coincidence to fight global warming.