We have just been told the real reason for USA tariffs
on EVs from China, and it is nothing to do with China's industrial
overcapacity. China is far from dumping EVs due to overcapacity, as only
a small percentage of Chinese made EVs are entering the global market.
It is all about the USA, German and Japanese EV makers not being able to
compete with China, and they have to come together to invent narratives
to contain China. The same modus operandi that resulted in the
formation of the Chips Alliance, which is starting to unravel.
The
100% tariffs on Chinese EVs are going nowhere, if it is meant to
cripple China. Tariffs by the USA will only make those EVs more
expensive in the USA, not anywhere else in the Global South. That is
where the big market is going to be for Chinese EV makers and the West
cannot compete. As China continues to dominate the market in the Global
South, the USA market may even be less relevant to Chinese EV makers
moving forward. Already the signs are there that Chinese EV makers are
setting up plants in South America and some European countries like
Hungary and avoiding the USA altogether. Even supporting supply chain
players of EVs like CATL, a Chinese battery maker, are abandoning the
USA, leaving EV makers in the USA like Ford, Volkswagen and Hyundai in
the lurch.
If China's total dominance of the EV market is a
grave concern for the rest of the world, why isn't the USA talking about
its total over capacity in weapon manufacturing and sales, a
destructive over capacity which should be a more concerning issue for
rest of the world. What about its overcapacity in toilet paper printing
and flooding the world by exporting its inflation? Are these not issues
that the world should care more about?
The USA has touted its
arsenal of more than 7,000 nuclear missiles, which by itself is an over
capacity. Why not look at itself in the mirror before opening its
goldfish gap. Like a goldfish opening and closing its mouth just for
air, the narratives trotted out by the USA are just hot air without
substance.
Anonymous
The USA and the West have their 'theory of victory' in Ukraine. It differs from the reality. Each consignment of military equipment is supposed to be 'game changers'. They all did change, changing into scrap metals. Russia is taking out airfields in Ukraine earmarked to host the F16s and will take out all the F16s jets as well when they do arrive in Ukraine. Putin does not joke about reducing them to scrap metal.
ReplyDeleteSimilarly, the USA and the West have their 'theory of victory' in chips, renewables, military supremacy. It differs from reality. They are still extremely arrogant and belittle China's resolve, and China is making them eat humble pie.
Huawei was not supposed to have developed an AI chip to rival Nvidia, not thought possible within the next 5 to 10 years, according to experts. Six months after that statement, Huawei has released an AI chip that is reported to be faster and better than Nvidia. That is why Nvidia has to cut prices to compete.
Russia has found a way to jam the signals of USA made missiles and rendering them totally ineffective, so ineffective that reports are surfacing that only 6% or one out of nineteen USA missiles fired by the Ukrainians managed to find its target. Those weapons are now obsolete, and the Ukrainians are not accepting those expensive duds.
Similarly, expensive USA reaper drones are found to be inaccurate and unreliable. The Ukrainians are using modified civilian drones made by DJI which were said to be more reliable and accurate. That does tell us the reliability of USA made weapons and the hype about its game changing abilities.