China will be selling EVs at the same price as those
sold in USA and EU, but without the added tariffs. So, what difference
does it make to EV manufacturers in China other than selling less to USA
and EU, while selling more to the Global South countries in South
America, Middle East and ASEAN plus Russia to make up, by cannibalizing
the market share of traditional car makers from USA, EU, Japan and South
Korea.
Africa can always be cultivated to be an upcoming huge
car market that China can leverage on, without fear of competition from
USA, EU, Japanese or South Korean EV makers. The latter four countries
are unable to compete on price, and price is the most important factor
that consumers look for.
And what does that mean for aspiring car
owners in USA and EU? Very expensive cars that, for a huge country like
USA, the people cannot afford not to own a car to travel around. Just
like in Malaysia, a family has to own a few cars to travel around.
Without a car, it is just like having no legs, a crippled person,
according to relatives living in Malaysia. Public transport is
non-existent, even around Southern Johore.
But it is a choice
that voters in USA have to live with. They do not understand what those
tariffs are doing to them, thinking it is to hurt China. It is no more
than an added tax on them. More than that, Trump, if he wins is
promising tax cuts for corporate entities, which means again helping the
rich further while punishing the poor. How is that going down with
normal voters is interesting. Heads the elites and rich wins, tails the
common people loses.
Anonymous
PS. Not only that Russia is now the main market for Chinese EVs, EVs are the perfect cars for dusty conditions in the desert countries of the Middle East and Africa. No fear of sand and dust being sucked into the air intake compartment of ICE cars. China is also producing extremely affordable EVs specially for developing countries, including 3 wheelers and 2 wheelers, at prices no one can refuse...very affordable to people in developing countries.
2 comments:
I came across this interesting video on Youtube - Sirant in China, giving a layman explanation of USA tariffs on China titled 'US Tariffs Destroying The Chinese Economy?? Who Does It Really Hurt??'. Take a look.
Most people already knew that tariffs are nothing more than an added tax, not on the manufacturers in China, not on the Chinese Government, but is an added tax to be paid by the end consumers in the USA and also in the EU.
Trump and Biden are blindsiding the USA voters, using this indirect method to screw USA voters, thinking they are just dumb as lampposts and unable to discern the difference between raising taxes and increasing tariffs in the present context. Raising taxes directly is going to ensure they never will get re-elected. Raising tariffs on the pretext of punishing China turns them into heroes to help them get re-elected. The USA voters think this is a great and novel idea to punish China, not realizing they are the ones being punished.
As I always say, China thinks decades ahead and can read the mindsets of USA politicians. China started more than a decade earlier with the BRI, helping poor countries to progress and eradicate poverty by building infrastructures for them, knowing these are the potential markets to come onstream for its cheap products. China is no longer living in fear of what the USA is doing, decoupling or derisking as they put it, as China already has more or less captured a big enough market for EVs alone in South America, Middle East, ASEAN and Russia, with Africa on the rise as well.
You see, taking EVs as an example, the real damage to the USA, EU and Japan is not China losing its EV market in these three regions and getting hurt badly. The real damage coming up is these three latter countries going to lose all the other vehicle markets in South America, Middle East, ASEAN and Russia and soon Africa. These markets for China EVs will more than make up for the loss of the USA and EU market. That is going to hurt not just the end consumers of EVs, but also hurting car manufacturers of those countries as well and will lead to job losses without a doubt. Then they will again blame China for stealing their jobs, when it is the USA Government that caused all the misery itself. A self-inflicted suicidal move.
So, that is why they are spouting hubris about curbing China's overcapacity. It is all about them knowing their inability to compete outside the USA. You see, curbing China will give them room to compete, not that they are going to be better. They cannot be better, so just play foul to win.
Oops, just remember they do lie, cheat and steal. They have no shame, honestly! They are exceptional beyond words.
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