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So the argument for the existence of tariffs is that the Chinese government provides unfair subsidies to its EV manufacturers. By setting up shop in Mexico, th
by Kon-Peki 2y ago
So the argument for the existence of tariffs is that the Chinese government provides unfair subsidies to its EV manufacturers.
By setting up shop in Mexico, the EV manufacturer will be locating equipment in Mexico, buying material in Mexico, hiring Mexican workers, etc. So then much of that subsidy is being provided to Mexico rather than China, yes? And the small amount that flows back into China is mostly in the form of profits that flow into the pockets of a bunch of already wealthy people.
You have to wonder why China is ok with this happening. It seems like a terrible use of their public money.
- uncanneyvalley 2y agoChina gets to project and grow their leadership in the EV space outside the Mainland while increasing their importance in a country that’s part of the US’s sphere of influence. Big win.