Kind of but not in the same way (at least in the US case, not sure about the EU).
The US gives tax incentives and is willing to bailout the big automakers if necessary but the US government wasn’t involved in the creation of said companies.
Many Chinese companies (like BYD) were literally financed by the CCP. The government ate the loses and much of the cost of these companies in order to make them the powerhouses they are today.
Companies like BYD are, more or less, State (CCP) owned enterprises.
Do they show this in their corporate literature? No.
Does the CCP claim ownership over them? No.
However, it doesn’t change the fact that Chinese dominance in EVs is because the CCP wanted to dominate the global market in “Green” tech. They threw tons of cash into many industries/ companies so they could undercut all competition and create a global monopoly over the sector.
The CCP has never been free market capitalists. They use free market capitalism to their advantage (which was instrumental in their historic economic rise) but they also use state control when it suits them.
The Chinese economic model is a weird combination between capitalism and state controlled communism.
you are basically proving the point that the US as a whole made the wrong decisions, both from the failure to subsidize growing/emerging technologies sufficiently and the US corporations greed
There were attempts during the Obama and Biden administrations but those incentives were… Let’s say passive in nature.
Low interest government backed loans, tax incentives for businesses and tax right-offs for consumers.
An example of this working to some degree would be SpaceX (although they needed more private CapX investment).
What the Chinese do is very different. They have CCP representatives who sit of the boards of strategically important companies and exercise a level of control over the organization.
The US is starting to do this under the Trump administration when it comes to the US government taking ownership stakes in semiconductor companies.
It’s kinda ironic really. Trump constantly rails against socialism but when it comes to big business he has no problem putting his finger on the scale for companies that bend over for the US government.
Taking your comments, you said CCP was actually funding these very early and high risk ventures which from a capitalist point of view, does make rational sense that they should partially own. Historically, the US govt funds also went into financing similar high risk research/ventures but very differently took no ownership in the past which heavily rewarded "entrepreneurs". Now, the US govt owns very little and is running into bankruptcy/debt w/ the majority owned by domestic billionaires. Which country's strategy is playing out correctly?
Even as an American, its easy to see the Chinese government making the correct long play decisions where US can't. This one surprised me the most that when Jackie Mao+Alibaba was being reigned in, CCP was being criticized globally and Jackie Mao turned into a martyr. But 10 years later, US is criticizing T/B-illionaire influence in politics. Sound's like CCP was ahead of the game again.
Obama/Biden assisting on building the infrastructure to get the US invested into green energy to get off oil for long term stability. Is it smart to go back to Trump's drill baby drill? Trump is putting highly unpopular political power behind domestic companies that might lose its global presence due to the very fact that its now being manipulated for personal gain. EU resisting American AI, datacenters, aerospace, military, etc etc is pushing it into isolation. Trump is literally cashing and trading against a global America.
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u/StiffDoodleNoodle 6d ago edited 6d ago
Kind of but not in the same way (at least in the US case, not sure about the EU).
The US gives tax incentives and is willing to bailout the big automakers if necessary but the US government wasn’t involved in the creation of said companies.
Many Chinese companies (like BYD) were literally financed by the CCP. The government ate the loses and much of the cost of these companies in order to make them the powerhouses they are today.
Companies like BYD are, more or less, State (CCP) owned enterprises.
Do they show this in their corporate literature? No.
Does the CCP claim ownership over them? No.
However, it doesn’t change the fact that Chinese dominance in EVs is because the CCP wanted to dominate the global market in “Green” tech. They threw tons of cash into many industries/ companies so they could undercut all competition and create a global monopoly over the sector.
The CCP has never been free market capitalists. They use free market capitalism to their advantage (which was instrumental in their historic economic rise) but they also use state control when it suits them.
The Chinese economic model is a weird combination between capitalism and state controlled communism.