4 ms·
> If I can see it then how is it that every car company hasn’t been preparing low cost EV offerings of their own? Because the low cost Chinese EVs is a dumping
by LunaSea 3y ago
> If I can see it then how is it that every car company hasn’t been preparing low cost EV offerings of their own?
Because the low cost Chinese EVs is a dumping operation organised by China thanks to low cost manufacturing and large public subsidies.
You can't necessarily compete against this as a company if your government doesn't protect you.
- __alexs 3y agoDumping is a specific thing. Are Chinese EVs priced lower in international markets than domestically?
- echoangle 3y agoIs that a requirement for dumping? Isn’t Dumping just selling at a loss?
- dagw 3y agoIs that a requirement for dumping? From a legal/WTO case standpoint, yes. Selling at a loss in general is perfectly legal, and lots of companies do that for all kinds of perfectly legitimate reasons. Using price discrimination to sell at a loss only in certain markets with the intention of damaging the domestic market in that region is when you get into trouble.
- LunaSea 3y ago> Dumping is a specific thing. Are Chinese EVs priced lower in international markets than domestically? I'm not sure but I don't believe that the price difference between China and the rest of the world would be the issue. The biggest problem is killing of the international competition by having artificially low prices.
- blitzar 3y ago> by having artificially low prices Chinese car manufacturers probably make more $'s on each car sold than US manufactures.
- mythhabit 3y agoThat not hard if your production and/or materials is subsidised by the state, in an attempt to outcompete western companies.
- blitzar 3y ago> subsidised by the state Like the $7b in subsidies each for ford and gm or the 100bn in free loans? Perhaps the 3bn in subsidies for tesla.
- mythhabit 3y agoNot saying USA is not doing it, and both Germany and France is doing it as well in the wake of Corona. But the amount is visible and until we get more transparency, we can only assume that China is doing it even more, because they are known to do that for strategically important sectors.
- __alexs 3y agoUnder the WTO definition of dumping it absolutely is. https://www.wto.org/english/tratop_e/adp_e/adp_e.htm https://www.wto.org/english/tratop_e/adp_e/adp_e.htm
- mauvehaus 3y agoDumping is more specific than that. What you're describing is simple price discrimination. Dumping additionally requires that the good be sold internationally for less than the cost of production.
- deleted 3y ago[deleted]
- bryanlarsen 3y agoAFAICT China isn't dumping. They're subsidizing internal consumption. A Chinese EV is ~$10,000 cheaper in China than it is outside of China. This is a massive advantage to Chinese vehicle manufacturers. They can scale up production using the internal market, and then use that scale to push down the external unsubsidised price. Pretty much exactly the same as the US. An American EV is about $10,000 cheaper in the US than elsewhere. $7500 because of the rebate, and the rest in shipping and other costs.