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China's Electric Vehicles Are Going to Hit Detroit Like a Wrecking Ball

• gnicholas 3y ago
  > Subsidies likely won’t be enough; Mr. Biden will need to impose new trade restrictions. But here’s where it gets messy. The case for protecting the American auto market from Chinese E.V.s is obvious and politically essential but also highly troublesome. In the short term, American automakers — even the homegrown electric-only carmakers like Tesla and Rivian — must be shielded from a wave of cheap cars. It will be interesting to see how Dems and Repubs react to this. Centrist Dems have opposed trade restrictions, whereas the Bernie wing of the party has favored them. But all Dems are in favor of green technologies. How will they justify excluding/heavily taxing foreign EVs that are good for the environment? On the Republican side, the centrists disfavor trade restrictions, but there's also a wing that is perfectly fine with them. In general Republicans do not favor green subsidies as much as Democrats. I would guess that investing in Ford or GM stock right now is as much a wager on their ability to lobby as much as their ability to make quality vehicles.