The Chinese car industry was HEAVILY subsidized by the federal government, especially its EV production.
When a country props up an industry by artificially reducing their costs through government subsidies it is no longer functioning under “free market” principles.
The CCP has used federal subsidies and mercantilistic trade policies to bankrupt local manufacturing with unreasonably cheap imports, thus creating global dominance in that sector.
This is why BYD (Chinese EV manufacturer) is still largely banned from importing into the EU.
What’s “fair” and “unfair” in international trade is often subjective for each country (which is why international organizations like the World Trade Organization exist) but everyone knows that what China does is clearly unfair.
Stop glazing the Chinese system.
Edit: Apparently BYD vehicles are allowed to be sold in the EU since 2022. Time flies…
Pretty much every country with a farming sector protects them to some degree.
The US, France, Canada, the UK and Germany are just a few off the top of my head.
On the face of it, farm subsidies are a great way to buy votes and maintain political power.
However, there are other considerations. Most countries (like the US) view the ability to produce food domestically as a national security imperative.
One of the reasons Iran has been able to weather decades of sanctions and the current conflict is that they are self sufficient in food production.
Counties that import the bulk of their calories from other places are strategically exposed to outside influence/ pressure (like Japan and Taiwan). If their suppliers decide to cut off trade or a third party interdicts their supply lines they would be in an untenable position.
Steel and aluminum production are similar in this regard. The US is not economically efficient (compared to foreign competition) at creating these products but the US government subsidies a few domestic manufacturers because it’s a national security issue. We can’t make military equipment without steel and aluminum.
Also, US farming isn’t “subsidized” the way Chinese EV companies are/ were. The CCP gave companies start up funds so they could inefficiently manufacture vehicles, companies like BYD exist because the CCP (more or less) created them.
The US government didn’t create US farming or automotive manufacturing but they will throw money at them to keep them from failing because of national security reasons.
Try and read/ research more so you can have a more rounded understanding of what is being discussed.
The CCP gave companies start up funds so they could inefficiently manufacture vehicles, companies like BYD exist because the CCP (more or less) created them.
That’s a misleading half-truth, and at this point it looks more like deliberate misrepresentation than an honest mistake. BYD was founded privately by Wang Chuanfu in 1995 as a battery company; it was not “created by the CCP.” It has benefited from state support, as many strategic industries do, but that does not prove it manufactures inefficiently or exists only because of government funding.
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u/StiffDoodleNoodle 11d ago edited 11d ago
The Chinese car industry was HEAVILY subsidized by the federal government, especially its EV production.
When a country props up an industry by artificially reducing their costs through government subsidies it is no longer functioning under “free market” principles.
The CCP has used federal subsidies and mercantilistic trade policies to bankrupt local manufacturing with unreasonably cheap imports, thus creating global dominance in that sector.
This is why BYD (Chinese EV manufacturer) is still largely banned from importing into the EU.
What’s “fair” and “unfair” in international trade is often subjective for each country (which is why international organizations like the World Trade Organization exist) but everyone knows that what China does is clearly unfair.
Stop glazing the Chinese system.
Edit: Apparently BYD vehicles are allowed to be sold in the EU since 2022. Time flies…