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>Why would China flood the US market? To kill off American industries. A lot of what China does makes sense when you consider that their goal is not to make a
by Dalewyn 2y ago
>Why would China flood the US market?
To kill off American industries.
A lot of what China does makes sense when you consider that their goal is not to make a financial profit, at least not in the near-term. No, their real goal is to go in and replace the local industries with their own; choking them out with Chinese goods so cheap yet still good enough that competition is impossible. The end result is the locals end up relying on China for industrial production, research and development, at which point China just won a war without firing a single shot.
Look at what happened with solar panels, lithium batteries, and indeed EVs. Most if not all industrial bases outside China were destroyed and replaced thanks to a flooding of Chinese goods. The red ink is no doubt immense, but the payout in sheer geopolitical power far exceeds it.
The Rust Belt and the collapse of American steel manufacturing is another example. Cheap steel from China and elsewhere led to the collapse of American steel, and we're now looking at it getting bought out by foreign interests (fortunately Japan rather than China, but the damage to American ego is beyond critical mass) as the final nail in the coffin.
- torginus 2y agoYou misunderstand me. The battle is not between US and China, it's between US companies, who want large profit margins and US consumers who want cheap, well made stuff. Just look at BYD's palette - their $10k EV, is a tiny car, and would probably not sell well in the US despite the price because US consumers don't buy cars this small, except maybe as a novelty. (Besides, tiny, cheap cars always face a stiff competition from barely used models available at the same price) Moving up, you have the Dolphin, a mid 20k compact car, it's affordable and good. There was a mid 20k compact car made by an US company - the Bolt. It was also affordable and good. Guess what - GM discontinued it, citing low profit margins. And they won't make another one. It's next-gen EV platform is decidedly aimed at a higher segment with a bigger profit margin. Higher still, you have the Seal, BYD's Model 3 competitor. First, it's no longer cheap, and that segment of EVs is the most crowded. Second, it's nice, but I don't think it comes together quite as well as a Tesla. What it does have on Tesla is build quality (which is Tesla's weak point), with most people expressing interest in it being the ones who are fed up with Tesla's shitty manufacturing and service. Based on all this, I don't think China could take the US market to itself, even if free competition would be allowed. This whole thing is about political posturing and enabling continued shitty behavior from US manufacturers. And if you'd accuse me of being some China shill, personally, I wouldn't buy a Chinese EV, not until they have a proven track record, and service network.