this post was submitted on 05 Apr 2024
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@Zipitydew the Chinese government wanted it to happen and invested. They take the long view. Most companies in china appear to be government entities of some sort. BYD is sort of a black swan in as much as the Chinese government wanted to be the market leader and is prepared to disrupt the traditional players. Tariffs probably won’t work as China will market to the rest of the world. What may help is incentives to modernise and produce cost effective vehicles. Non Chinese car manufacturers really stuck their heads in the sand for at least 10-20 years and are now paying the price.
The last time I saw this much angst was during the oil shock of the 1970s where US gas guzzlers were unsellable due to the high fuel costs. Japanese cars were the target then as they were relatively fuel efficient.
BTW, Chinese labour costs seem to be increasing so maybe the days of people working for a pittance aren’t as relevant as they used to be.