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Ok? My point stands. It's still not a free market with subsidies limited to domestic manufacturers. A country dumping money into an industry in order to underc
by Aloisius 2y ago
Ok? My point stands. It's still not a free market with subsidies limited to domestic manufacturers.
A country dumping money into an industry in order to undercut foreign competition should be punished. I don't care if it is the US, China or whoever.
One can not let it stand or the market distortion will drive domestic competitors out of business at which point they'll be able to hike up prices. For something like the auto industry with high capital costs to get into, one might never recover.
- aurareturn 2y ago>Ok? My point stands. It's still not a free market with subsidies limited to domestic manufacturers. Chinese gave Tesla subsidies as well and a massive amount of valuable land near Shanghai for their Giga plant. They also sped up construction regulation approvals for Tesla.
- Aloisius 2y agoTesla's domestic Chinese manufacturing received subsidies. That still has the effect of benefiting domestic over foreign production and should be punished. The fact that ultimately Tesla is an American company does not matter as the effect of shifting manufacturing due to market manipulation remains. The kind of non-preferential subsides I was referring to are generally purchase subsidies without any origin requirements. For instance, EV purchase rebates in the US aren't restricted to domestically manufactured vehicles.
- aurareturn 2y agoUS EV subsidies allowed Tesla to survive, which allowed it to become the dominant EV player in the world.