Smart industrial policy. No different than EU subsidizing AirBus to build an aircraft industry or US subsidizing US EV industry, Tesla alone has received $20B in US subsidies or $1T to build US charging infrastructure to support the EV’s.
Issue with China is not government subsidies but that as a military dictatorship with 70-30% ownership of business, China suppresses labor in favor of industry. No unions. Long hours. No work safety rules. No work health rules. No health care or retirement costs for industry. No environmental regs on mfg or construction of plants. It keeps the cost of Chinese goods artificially low. These are the basis for a tariff and they apply equally to all countries including US and EU, Japan, Korea and Taiwan.
kongweeneverdie
Not a big sum as it is not spending on passenger cars alone. Batteries, buses, 2 wheeler, battery monorails, van, truck, pick up, self driving, autonomous driving….etc Of course, company like BYD has return investment of GLCs.
Plus China overcapacity of USD $3.2 trillion reserve, easily pass such initiative while US congress has to fight over the issue because of the tight budget impose by constitutional spending.
FMSV0
A lot of those examples were done in the EU(don’tknow about the usa), so what’s the issue?
Lopsided_Quarter_931
15B per year to become world leader in a new key technology. That’s money well spent.
tech57
Spent or invested? I think now would be a good time to say “invested” instead of spent seeing how often people like to mingle those 2 words together for some reason.
evgis
USA spends 2T per year on “defense”. If only EV industry could be so profitable to be able to pay off the politicians 🙂
7 Comments
Smells like jealousy
Smart industrial policy. No different than EU subsidizing AirBus to build an aircraft industry or US subsidizing US EV industry, Tesla alone has received $20B in US subsidies or $1T to build US charging infrastructure to support the EV’s.
Issue with China is not government subsidies but that as a military dictatorship with 70-30% ownership of business, China suppresses labor in favor of industry. No unions. Long hours. No work safety rules. No work health rules. No health care or retirement costs for industry. No environmental regs on mfg or construction of plants. It keeps the cost of Chinese goods artificially low. These are the basis for a tariff and they apply equally to all countries including US and EU, Japan, Korea and Taiwan.
Not a big sum as it is not spending on passenger cars alone. Batteries, buses, 2 wheeler, battery monorails, van, truck, pick up, self driving, autonomous driving….etc Of course, company like BYD has return investment of GLCs.
Plus China overcapacity of USD $3.2 trillion reserve, easily pass such initiative while US congress has to fight over the issue because of the tight budget impose by constitutional spending.
A lot of those examples were done in the EU(don’tknow about the usa), so what’s the issue?
15B per year to become world leader in a new key technology. That’s money well spent.
Spent or invested? I think now would be a good time to say “invested” instead of spent seeing how often people like to mingle those 2 words together for some reason.
USA spends 2T per year on “defense”. If only EV industry could be so profitable to be able to pay off the politicians 🙂