4 ms·

You hear this argument all the time, and I'm sure there is substance to it... But I cannot help but feel that it's misconstruing reality a little. I think the

by ffsm8 1y ago

You hear this argument all the time, and I'm sure there is substance to it... But I cannot help but feel that it's misconstruing reality a little. I think the issue isn't running the established companies in the ground - EVs aren't really that complicated for new brands to bootstrap if China stopped their subventions... It's where these cars are being produced, and that's already China for almost everything, or am I wrong there? Seriously, if China wanted to ruin these companies it could just pass a legislation that makes production for $established_brand impossible, and that company would be hard pressed for years to get production up and running - and I sincerely doubt they would have enough runway to get through that.

JSteph22 1y ago
>that's already China for almost everything, or am I wrong there? Yes, you're wrong. Most car parts in the current supply chain are not coming from China and Stellantis is a prime example of this.
- ffsm8 1y ago
  Oof, I was to imprecise in my wording, which contextualized my comment badly. You're completely right, ICE car production can not be fully sourced to China. I was thinking solely about EVs. It made sense to me, because that's the market China is targeting. Battery production, chip production, electric motors, smelting etc keeps getting outsourced to China. And these are the building blocks for electric cars, hence my comment. But the precise machining and assembly for ICE cars has not been moved to China at this point in time. My point isn't really a personal insight into the industry though. ultimately, I'm merely parroting what has been covered before like with https://www.businessinsider.com/china-rare-earth-restrictions-alarming-auto-industry-ford-bmw-tesla-2025-6 https://www.businessinsider.com/china-rare-earth-restriction... https://www.reuters.com/business/autos-transportation/auto-companies-in-full-panic-over-rare-earths-bottleneck-2025-06-09/ https://www.reuters.com/business/autos-transportation/auto-c... https://www.businessinsider.com/3-ways-chinese-evs-are-different-from-their-us-rivals-2025-7 https://www.businessinsider.com/3-ways-chinese-evs-are-diffe...
  - JSteph22 1y ago
    Ahh, gotcha. Thanks for the info.

by ffsm8 1y ago

JSteph22 1y ago

>that's already China for almost everything, or am I wrong there? Yes, you're wrong. Most car parts in the current supply chain are not coming from China and Stellantis is a prime example of this.

ffsm8 1y ago
Oof, I was to imprecise in my wording, which contextualized my comment badly. You're completely right, ICE car production can not be fully sourced to China. I was thinking solely about EVs. It made sense to me, because that's the market China is targeting. Battery production, chip production, electric motors, smelting etc keeps getting outsourced to China. And these are the building blocks for electric cars, hence my comment. But the precise machining and assembly for ICE cars has not been moved to China at this point in time. My point isn't really a personal insight into the industry though. ultimately, I'm merely parroting what has been covered before like with https://www.businessinsider.com/china-rare-earth-restrictions-alarming-auto-industry-ford-bmw-tesla-2025-6 https://www.businessinsider.com/china-rare-earth-restriction... https://www.reuters.com/business/autos-transportation/auto-companies-in-full-panic-over-rare-earths-bottleneck-2025-06-09/ https://www.reuters.com/business/autos-transportation/auto-c... https://www.businessinsider.com/3-ways-chinese-evs-are-different-from-their-us-rivals-2025-7 https://www.businessinsider.com/3-ways-chinese-evs-are-diffe...
- JSteph22 1y ago
  Ahh, gotcha. Thanks for the info.