The European Union voted on Friday to impose tariffs as high as 45% on electric vehicles from China, threatening a broader trade conflict with Beijing which has already vowed to protect its companies.
Can you explain to us what the problem with China subsidizing EV manufacturers is exactly? That’s how China chooses to run their economy, and it’s entirely their business. The whole argument for capitalist markets is that they’re supposed to be more competitive last I checked. If that’s not the case then maybe the west should reexamine its assumptions about how an economy should be run.
@yogthos@gomp It’s the capitalist textbook example, to conquer a market by undercutting prices and to crush competition in that market that cannot compete - and to later increase prices when there is no more competition. You can see this all over the world, not only with China and EVs, but also for example with Uber and the taxi business or Europe with their food exports to poorer countries outside the EU.
China is already dominating lots of markets, and what you’re describing isn’t happening. For example, pretty much all solar panels are produced in China, and they’re still dirt cheap today.
They do this in an attempt to take over other markets.
If nothing else, they help get their brands into the world.
There’s loads of chinese EVs driving around where I live now, so based on anecdotal evidence, it’s working.
Dumping is when you sell things below cost to drive competition out and then jack up the price once you achieve a monopoly. What’s happening here is that China simply produces things much cheaper than the Europeans. It’s not limited to EVs.
Can you explain to us what the problem with China subsidizing EV manufacturers is exactly? That’s how China chooses to run their economy, and it’s entirely their business. The whole argument for capitalist markets is that they’re supposed to be more competitive last I checked. If that’s not the case then maybe the west should reexamine its assumptions about how an economy should be run.
@yogthos @gomp It’s the capitalist textbook example, to conquer a market by undercutting prices and to crush competition in that market that cannot compete - and to later increase prices when there is no more competition. You can see this all over the world, not only with China and EVs, but also for example with Uber and the taxi business or Europe with their food exports to poorer countries outside the EU.
China is already dominating lots of markets, and what you’re describing isn’t happening. For example, pretty much all solar panels are produced in China, and they’re still dirt cheap today.
They do this in an attempt to take over other markets.
If nothing else, they help get their brands into the world.
There’s loads of chinese EVs driving around where I live now, so based on anecdotal evidence, it’s working.
You mean just like every other country?
Is the US subsidising EVs? The EU? Anyone else?
Other than that, sure.
https://en.wikipedia.org/wiki/Dumping_(pricing_policy) (it’s not limited to EVs)
Dumping is when you sell things below cost to drive competition out and then jack up the price once you achieve a monopoly. What’s happening here is that China simply produces things much cheaper than the Europeans. It’s not limited to EVs.