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.
