5/21/2024

EVs - America and Europe raise white flags

 One of the key tenets of Capitalism is comparative advantage, where countries with the best comparative advantage in cost of production, able to produce the best quality goods and services, should be the main producer of the goods and services. Each producer should focus on what it can do best and cheaper, a division of productive capabilities and labour. And globalisation is just a derivative product of this economic principle, that is, with the intervention of state and politics.

When the latter two come into play, what the world gets is tariffs, taxes, subsidies, protectionism, and even the ugly 'break the legs' of the competitors, put obstacles in their path. The lying American Empire is now the epitome of lies, in their fake claims on free trade, globalisation, fair competition etc etc. They are now fabricating all kinds of lies, hate, misinformation, to curtail free trade and fair competition.

The only bright spark in support of true Capitalism is in the EV industry. All the major manufacturers of cars especially those in the US, Europe and Japan, have acknowledged that China is the best in manufacturing EVs and EV batteries. There is no competition against what the China can do better. They have conceded that China should be the sole producer of EVs for the world. Ford, GM, VW, Mercedes, BMWs have raised their hands and decided that they should concentrate on what they can do best, that is ICE vehicles. They are reducing their investments in EV manufacturing, or at best, in partnership with Chinese EV makers to gain a share in the industry.

The Japanese tried to develop hydrogen cars and is placing high hopes that this would be able to compete with EVs and carve a slice of the market share for themselves. Their second strategy is to make hybrid EVs as an alternative to full EVs. In a way, they are surrendering the full EV market to China.

This is the perfect example of Capitalism at its best. Do what one is best at. Cavest, if the govt and politics did not get involved. But the political demon in Raimondo and her gang are hot on the neck, continuing to place great obstacles to stop China from producing EVs with all kinds of fake excuses even when America is hardly able to produce a reasonable and competitively priced EV other than Tesla. Given the realities facing all the auto manufacturers, the future of EVs is quite clear. No matter how the simplistic spoiler in Raimondo and her gangs tried, it would be in vain. The most efficient manufacturer of EVs would win the day for the good of the consumers and the world.

American, European manufacturers should continue to do what they can do best, produce ICE cars. Japan should continue with their hybrids or hydrogen cars to find a niche in the industry. The Koreans can try to compete with the Chinese in producing the best EVs at the best price for the consumers. Let the better man wins.

It is folly to want to compete in a field when one does not have a comparative advantage. The real business decision makers know best and would put their money at where they think best. Clinging on to a losing proposition by foul and unethical means would only prolong the agony and suffering. The end result would still be the same. Unfortunately the clueless Washington clowns cannot see the light at the end of the tunnel.

PS. If American imposes a 100% tariff on Chinese EVs, it would mean that the Americans would have to pay double for a Chinese EV while the rest of the world can buy a Chinese EV much much cheaper than the Americans. By the way, this is another American hoax. Hardly any Chinese EVs are sold in America. It is an exercise to con the ignoramus, a tariff all for nothing.

4 comments:

  1. Good morning All

    Why the UASSA is in such a mess now?

    They had what's Raimondo, ex Italian presumably so? Nancy Pesi Cola, Blinking Idiot Blinken and their likes!

    All trying to be Genius Leaders but are Nincoompoos trying to out done one another and ROJAK.

    Snuffing one another's candles to shine themselves brighter.

    Many cooks spoiled the broths.

    That's why their MESS!

    Whereas China only have their homogeneous own and their own with their same cultures and intelligence that's the difference no mess.

    SinkiesLAND with that Lau Goh started the same following the UAssA praising what's diversity will strengthen the country and will succeed.

    Just because he saw one time the Frenchies won the World Cup with many of other foreign players who are now Frenchies citizens.

    Just buy them over like Sinking Land table tennis players and they screwed your backs after enriching themselves.

    He exclaimed that we should do the same with the influx of foreign talents to make SinkiesLAND into 1st World Top Dog.

    Al these daft countries which have such thoughts and am having millions of others into their land are now facing insurmountable problems that these migrants brought into their countries.

    Now coming Elections Register. They said also had many many new citizens.

    Wow, Papies sure chiak.

    Ahem, they know whats to do and vote lah!

    So Sinkies no chance to change.

    In time to come, you shall also receive the same karmas as the UAssA and Others had foolishly done.

    Anyway no eyes see.

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    1. Bangladeshis admit to receiving M’sian ICs, marrying locals https://www.freemalaysiatoday.com/category/nation/2016/02/19/bangladeshis-admit-to-receiving-msian-ics-marrying-locals?utm_source=whatsapp&utm_medium=share-button

      Happening in Matland for their votes

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  2. Sinkieland also bet on the wrong horse, at one time it was actively promoting hydrogen car. Now it reluctantly try to play catch up by installing more ev charging point. If sinkieland is serious about climate change (zero emission target), it could had mandated all buses to be electric long time ago. Miw just want to sell more oil to make more money. All the talk about climate change concern are just wanyang.

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  3. Sinkieland makes all decisions independently, not coerced or influenced by any country. That is why it is not using Huawei's 5G or China's EV buses or train technology.

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