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Maybe the should start pulling out of China before they get nationalized and focus on rest of the global market Tarriffs as you say will hurt both ways but Chi
by adriancr 2y ago
Maybe the should start pulling out of China before they get nationalized and focus on rest of the global market
Tarriffs as you say will hurt both ways but China more as its smaller then the global market.
- constantcrying 2y ago>Maybe the should start pulling out of China before they get nationalized and focus on rest of the global market This will ruin EU car makers. Abandoning a strong position because you are afraid you can't compete is a disastrous policy.
- adriancr 2y ago> This will ruin EU car makers. Why?, they can sell more in home region and rest of the world where China is also going to be tariffed. Its not like access to China is free... they mak JVs where they lack control and give up their IP. Pulling out means less unfair competition, less knowledge transfer to chinese auto makers.
- constantcrying 2y ago>Why?, they can sell more in home region and rest of the world where China is also going to be tariffed. The market is already saturated by them. These companies will instantly loose a very significant amount of revenue and loose access to a big market. This can only mean cuts in the EU as well, as engineering and manufacturing for China is lost.
- adriancr 2y agoOh no, the JV where china owns 51% is going to go bankrupt. > The market is already saturated by them there's market share to take from Chinese companies elsewhere since they are going to be tarriffed everywhere else. > These companies will instantly loose a very significant amount of revenue and loose access to a big market. You are missing the significant market being opened up and protected via tarrifs where China companies need to pull from. That's larger then China market
- lossolo 2y ago> and rest of the world where China is also going to be tariffed Where? In US? Because in majority of the world they will not get tarrifed. This is wishful thinking. You are closing the biggest market for yourself (China) and then you are not competitive in the rest of the world so either way you lose. The only way to win is to stay competitive.
- adriancr 2y ago> Where? In US? US yes. Also countries like Taiwan, Japan, Korea, Vietnam, Phillipines, India have territorial disputes with China. If you add EU as well, what's left? > You are closing the biggest market for yourself (China) Biggest markets in the world are US and EU. In china they cannot even compete without joint ventures they do not own. So it's not like they lose much, just 49% of a joint venture
- asadotzler 2y agoAll China has to do is build more US and Mexico factories for tariff avoidance. China's already in the US with Volvo and will be in Mexico in a year or two with BYD and others. They won't be boxed in and any suggestion they will be comes from someone who doesn't even understand USMCA and other mainline trade agreements.
- deleted 2y ago[deleted]