logoalt Hacker News

ericmay • today at 6:10 PM • 2 replies • view on HN

We tariffed them (Europe will too) because China subsidizes them and is building excess industrial capacity to run our companies out of business where we have higher wages and such. China also artificially keeps its currency low to boost exports toward the same goals.

It's more important that we protect domestic industry and good union jobs than it is for us to import EVs at lower prices.

Here's a great article I shared elsewhere: https://www.wsj.com/business/autos/china-cars-domestic-sale-...

  "The number of Chinese EV brands selling at least one product rose to a record 143 at the end of 2025, according to a tally by management consultant AlixPartners.” 
(In one noted instance from the article a company built (through local government subsidies and tax breaks and other schemes) capacity to build around 100,000 cars/year and have only built 600 to date.

  "Now, in a country with a shrinking population, reliable big-city mass transit and a growing robotaxi industry, sales of passenger cars to regular Chinese families are unlikely to ever again record a sustained surge, analysts said. But cities and their private-sector partners are reluctant to admit that their lofty ambitions won’t be fulfilled, which would result in factory closures and lost jobs.” 

  "In recent months, Germany’s once-towering trade surplus with China in automotive products has turned into a deficit. Germany—the country widely credited with inventing the automobile—is embracing Chinese brands, while German automakers are struggling in China.” 

  "In the U.K., BYD is selling its flagship Seal hybrid sedan for the equivalent of around $44,000, more than $10,000 less than a similarly equipped Volkswagen Passat. These vehicles are sold at Chinese price points we cannot match with European cost structures,” said Volkswagen Chief Executive Oliver Blume in an August memo to staff."

  "About the only major market where Chinese automakers aren’t causing upheaval is the U.S., where tariffs and restrictions on Chinese vehicle technology have all but locked out the country’s automakers. General Motors and Ford are among the few automakers still pumping out relatively healthy profits.”

Replies

nneonneo • today at 6:56 PM

From TFA:

  Government subsidies in China — while 5 to 10 percent of Chinese automakers’ capital spending, estimated O’Donovan, compared to about 1.5 percent in Europe — are no longer the Chinese auto sector’s primary advantage. Chinese carmakers now enjoy deeper structural advantages from their enormous scale, dense supply chains, high factory utilization and automated production.
Several companies in China now tout their “dark factories” where they make or assemble many parts of their cars with no human labour at all. It’s likely that the larger Chinese companies are capable of undercutting European makers even without government subsidies or wage parity.
➕ show 1 reply
BigTTYGothGF • today at 7:21 PM

> China subsidizes them

Maybe we should subsidize some industries ourselves, probably a better investment than more war.

➕ show 1 reply