15 minutes explaining why EVs are not selling in the USA.
China is churning out all the latest technology that are welcomed by the world, 5G, 5.5G, solar panels, satellite connectivity mobile phones, EV batteries and numerous models of the best EVs, two wheel EVs and EVs running with AI sophistication, etc etc. The biggest contribution by China towards green technology, climate change and a clean and better environment is non other than EVs. And China is not just selling EVs but a whole new concept of a futuristic world of AIs as an integral part of EVs.
EV is new technology that no country can claim to have an advantage until recently. The West may have a slight advantage of an early start, but was half hearted. They are already very well ahead in ICE vehicles and with a whole network and supply chains that were unbeatable. Competing against the West on ICE vehicles that have a century old mature technology and industry is a no go for China. China cannot ever think of catching up.
China chose to go full steam ahead with R&D in EVs, AIs and related industries. This is new frontier and China has nothing to hold back. Now China has succeeded in becoming the best in EV batteries and EVs and leaving behind a dusty trail for the West. And this is just the beginning, with a whole slate of AI technology as part of the new eco system.
The West, especially the USA, has accepted defeat and as good as giving up the race. Tesla is the last contender alive, but would soon be history as well, or at best chasing the Chinese EV manufacturers. Tesla is just about EVs, like Apple is just about mobile phones. The Chinese are bundling all these new technologies and offering them as a package, in an integrated world of AIs. It is not just buying an EV or a mobile phone.
The Americans' advantages in ICE vehicles and industry become their biggest stumbling block. They cannot afford to dismantle the whole ICE vehicle network, support infrastructure and supply chain. What would happen to all the petrol stations and mechanical repair workshops, the spare parts suppliers and the workers and mechanics that were trained and skilled in ICE vehicles?
The ICE manufacturers would all go bust if they are replaced by EVs. EVs is a great disrupter to the whole automobile industry. Unemployment is staring at the American ICE workforce, with millions going to be affected. They will go the way of the steel workers, no longer employable. The ICE manufacturers must be bribing their elected representatives full time, with a lot of money, oops, lobbying, to keep the ICE industry going and keep EVs out of America. Another too big to fail industry?
This is looking like the 5G competition that the Americans have to let go and stick to its old industry and technology. Americans would have to live with 4G technology and ICE vehicles and petrol stations. The rest of the world would warmly embrace EVs with 5.5G technology and AIs embedded in them, and a futuristic world of high tech, driverless EVs using voice call commands zooming across the cities and countries. Who knows when the Americans would abandon their ICE vehicles when they cannot afford to pay for petrol and turn to using horses and bandwagons?
The Americans are sinking in a pool of quicksand of ICE vehicles, without EVs and EV infrastructure and system, and EV talents. And also without high speed train system. How to dismantle an ageing train system across a continent? Even the dismantling of Huawei's 5G network is going to be tedious and costly.
The good point is tourism. The people of the world can visit America to see and experience the technology, infrastructure and operating systems of the 60s and 70s and get fascinated by how advanced the Americans were, then.
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During the Trump administration, EVs, solar panels and wind turbines were demonized by Donald Trump himself, because they were starting to be dominated by China and USA and Europe were falling behind.
Trump had claimed that wind turbines were killing birds, the most ridiculous reason of all reasons (could be killing his bird). Trump also warned EV buyers that he will punish those buying them, in other words punishing Tesla too. And tariffs were slapped on solar panels mostly from China. What did these all achieve in the end? It slowed USA's progression towards renewable energy, and it fell behind China with another self-inflicted mistake.
Then Donal Trump was all for expanding USA's oil exploration, fracking and further investments in big oil, probably the biggest lobby contributing to his Presidential campaign in 2016.
Despite the onslaught, China persevered, resisted and expanded production and did not fall for Trump's political gamesmanship. China is today not only the dominant player in EVs, solar panels and wind turbines, but also controls the raw materials for their manufacturing such as rare earths, lithium, graphite and steel production among others.
China's domination does not come about by chance. Chinese leaders always look far ahead, 20 to 30 years ahead, betting on those sectors that have the biggest potential for growth and took control of the source of raw materials available and building up its refining capabilities, that nobody thought necessary to challenge. And now the USA and the West have lost the plot and are trying to play catch up. Catching up is now difficult, or should I be blunt and say impossible, so they are resorting to what they do best to pull others down to their level - sanctioning, demonizing, erecting barriers, increasing tariffs, roping in allies to set up alliances, all with the objective of stifling China.
And of all things, Janet Yellen is warning China not to increase industrialization further, which will make it more difficult for the USA and the West to pull closer. Good try Janet, just like the oil price cap that she came up with.
Which Asian African Latin American wants to be a tourist in USA? To be robbed, beaten, spit on? Cant even be certain if can come home unharmed.
Shopping for cheap Made in China products? Cheaper in home country. Eating enormous portion GMO food? No thanks. For culture? What culture does a 250 year old country can give? LGBTQ? Only good thing about USA is the vast diverse landscape but can find the same diverse landscape in China, where you are more welcomed.
Trump's support for big oil in his first term was also a contributing factor to his diatribe against EVs, solar panels and wind turbines during his presidency.
Renewables will decimate the ICE vehicle manufacturers, big oil supply chains for vehicles, resulting in millions of jobs at stake. It will also probably kill off most oil fracking setups. If that happens it will be a national security issue for the USA, from a position of self-sufficiency to needing to rely massively on the rest of OPEC.
In China's case migrating to EVs is a natural progression, both for national security reasons and making China less reliant on fossil fuel, which it is not a big player unlike the USA.
Moreover, now that Russia is China's biggest oil supplier and not subjected to threats by the USA and the West over seaborne oil imports from the Middle East via the Straits of Malacca, going big into EVs is a smart move. However, relying solely on or largely on Russia for its oil needs is also not a wise move. China is also constructing huge dams to harness the enormous potential of storage energy afforded by its massive rivers. But China is also looking further ahead for its future energy needs and is not putting all its eggs in one basket.
Janet Yellen is again in China talking about warning China to curb its industrial overcapacity. Why is a country's overcapacity of any concern to the USA, I wonder? The USA is obviously unable to catch up and is inventing all kinds of narratives to hold back China. The reason that China can stand on its own today is all about its overcapacity to counter USA and Western sanctions. China is in fact 'future proofing' its push to be able to withstand USA and Western sanctions and threats.
China will be on its knees today without its dominance in some areas of scientific research and engineering, having a hold on rare earths, lithium and bauxite among others, and besides that, China had already built up all the logistics and expertise in refining such elements. Of course, upgrading the military stands as the foremost important aspect of China's indulgence in overcapacity. It will not be wasted.
Janet Yellen is telling China the USA is building up its industrial capacity too. Good luck to that, but why is there a need for her to tell China this. How long is the USA going to take to set up the logistics alone to undertake the job of truly decoupling from China?
Upon her return to the USA, I can more or less predict the salivating USA Government and MSM will start yelling to the world that Yellen had succeeded in pushing China to reduce its industrial capacity, lectured China again on human rights (their favorite past-time), besides warning China of further USA retaliation if China does not follow their script and all the hocus pocus. China is so familiar with the USA playbook to care two hoots about the yelling.
Watching her alighting from the plane, holding the rails tightly, reminds me of Biden stumbling up and down the steps of Air Force One. This old lady should not have been pushed into this job and is another example of 'elderly abuse'. Why is the USA abusing their old people to such an extent. Are there no capable young people to take over the running of the country, that they have to rely on such old feeble folks to hold the country together? The future does not look good for them if that is so.
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