Chinese carmakers must never build plants in USA despite
Trump's double-talk. It is too risky. Trump is not reiterating an
openness for Chinese automakers to build cars in the USA. He is
threatening Chinese automakers from building factories in Mexico, clear
and simple. That does not amount to real openness in wanting to attract
Chinese automakers to the USA. He is attempting to force the hand of
Chinese carmakers to move from Mexico to the USA, which is not going to
happen.
Trump's stance is just plain rhetoric. Trump's hot air
is toxic and those believing in him is falling for a fate as bad as
being a friend of the USA. Is the USA really great after Trump's last
four years in office?
Chinese carmakers should just continue to
invest in Mexico, and elsewhere as long as outside the USA and EU,
focusing on producing cheap EVs for the Global South countries. Trump
can erect 500% tariffs against Chinese EVs if he likes, but that cannot
stop Mexico and others from exporting cars to the Global South
countries.
Remember, there is an even bigger consumer market
outside the USA and Europe. With countries in Africa, South America,
Middle East and Central Asia progressing out of poverty, with help from
the Chinese, the market in the Global South will continue to grow. The
USA and EU by comparison have a combined population of about 780
million, which is only about half of Africa's 1.4 billion population.
And bear in mind that Europe is going downhill instead of improving,
which means also getting poorer. Their Ukraine adventure saw to that
decline.
Never underestimate people in these poor countries
becoming wealthier in time. China was never thought to be such a huge
consumer market just thirty years ago, with poverty eradication thought
to be unsurmountable. China is today a completely different consumer
market that everyone strives to get in and take advantage of.
Anonymous
2 comments:
When Chinese EV manufacturers pivot to the Global South countries and especially to ASEAN with the USA and EU market closing up, Japan will be the biggest loser. Chinese EV makers are setting up factories in Thailand and Indonesia instead of the USA and EU. Japan will have to compete tooth and nail with Chinese EV makers and will suffer the same fate as in other sectors.
The car manufacturing sector is Japan's last icon about to fall from its dizzying heights in Industrialization. And it is all due to the USA and EU's actions against China. The USA has managed to kill two silly birds with one stone - de-industrializing the EU and crippling Japan. How much further is Japan going to fall is left to be seen. Its fourth place in the Global GDP ranking is not going to last.
South Korea took over the electrical and electronics sector from Japan and was in turn cannibalized by Chinese companies like Hisense, Xiaomi and TCL. South Korea also took over the shipbuilding sector from Japan and now China eclipsed the South Koreans in shipbuilding. China is taking over the car making businesses from Japan and South Korea as well.
When China wants to dominate a sector, it moves directly towards its goal, and nothing is going to stop it. The USA thinks it is going to stop China's semiconductor development priority by ganging up with Taiwan, Japan and South Korea to do its dirty work. It is going to fail miserably, with the latter three being dragged into the quagmire and suffering the most collateral damage to come.
https://www.businessinsider.com/what-trump-presidential-victory-could-mean-for-evs-tesla-musk-2024-7
Dotard to stop the EV Industry if elected on 1st day and damn to all climate challenges.
So brace all for 40 degrees and dying of heat strokes etc
Post a Comment