alt Hacker News> That's an opinion, not a fact.
It’s not an opinion. You’re welcome to go read China’s own self-published strategic plans on this or a litany of news and policy journals discussing this.
> This is way too expensive for something like that to last.
How can you claim it’s too expensive if you’re claiming you don’t even buy that it’s happening??
> The rush to the bottom is already killing so many chinese automakers locally. The idea that they can sustain such an money bleed globally is plain asinine.
Look at German automakers in China for a view of the future.
As Chinese automakers compete and then consolidate they’ll raise prices of course but the level of competition and capacity build out will still have them underpricing other automakers due to economies of scale, cheap labor, and advanced manufacturing. They don’t need to sustain it really, globally they’re already poised to win which is why US, EU, Japan are going to have a lot of import controls, tariffs, and will utilize other tools to protect domestic industries.
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> It’s not an opinion. You’re welcome to go read China’s own self-published strategic plans on this or a litany of news and policy journals discussing this.
I didn't say they don't prop their carmaking, battery or ev industries. I said that I don't buy the argument it's bad for us.
> They don’t need to sustain it really, globally they’re already poised to win which is why US, EU, Japan are going to have a lot of import controls, tariffs, and will utilize other tools to protect domestic industries.
Protectionism historically only helps industries in their earliest stages when you need to kickstart them, never when they are mature.
At the end of the day western consumers and workers are always left with the bill if they cannot compete. It's us who will end up paying twice the amount for cars that aren't competitive, and don't have incentives to compete because they are protected anyway.
You also need to understand I'm European. Not American.
German/Italian economies are strongly export dependent. Exports amount for 50% of german economy and 30%+ of Italian one.
Protecting internal markets achieves little to nothing, which is why Germany and Italy were among those less willing to tariff chinese cars.
US has a giant internal market and is not a good exporting economy, it's core exports are financial and IT services.
There are plenty of countries that lack domestic automotive production that are very OK using Chinese EVs. Nepal for example, is all in in Chinese EVs now since it’s people couldn’t afford much gas or ICEs before, and with some hydro investments (also aided by China), they can now better afford to buy (cheap Chinese EVs) and drive cars (cheap hydro). There are a hundred nepals out there that the western and Japanese countries aren’t going after.