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Are BYD cars really subsidized or is that a bunch of BS?
by threethirtytwo 10mo ago
Are BYD cars really subsidized or is that a bunch of BS?
- rootusrootus 10mo agoYes, BYD is tightly intertwined with the CCP and gets a lot of subsidies, grants, favorable loans, etc.
- standardUser 10mo agoYes, following an almost cookie-cutter-like pattern of emerging economies protecting and supporting their auto industries.
- taneliv 10mo agoI feel like that is not specific to emerging economies.
- rootusrootus 10mo agoGiven their war manufacturing ability, I expect any govt to support the industry to some extent. I think that China is additionally doing it to strategically weaken their rivals. Both for economic as well as military objectives.
- maxglute 10mo agoPRC just underpricing competitors is frankly retarded cope at this point, the reality is PRC industrial policy also simply permanently drives structural costs down. They're not spending billions in pork barrel jobs program that need reoccurring injections that rarely prioritize manufacturing efficiency. Pretty much every industry where PRC took the value-engineer hammer (initially with subsidies) has stayed cheap (eventually without subsidies). Like it's been 20 years, PRC competitiveness hallowed out a lot of western industrial base already, but their goods remains cheap. They're not subsidizing in perpetuity, their manufacturing is just stupid efficient and producers are willing to live on less margins because before even competing with western incumbents, they're competing with other Chinese competitors foremost and it just so happens survivors of PRC involution is by process of elimination, the most competitive.