[solresol]

If the "outcompeting" is possible because of Chinese government subsidies, then it's important to protect local industry from unfair competition.

It's similar to the logic behind anti-trust actions against monopolists. If the playing field isn't level, then the USA government steps in to level it.

(Whether BYD is subsidised or not is another question, but the above is the logic of protecting local industry.)

[justinclift]

> If the playing field isn't level, then the USA government steps in to level it.

More recently though, it kind of seems like if the playing field isn't tipped strongly towards the US, then the US government will step in to tip it their way.

[intended]

Government subsidies effectively provide protection for a local market and capital.

America has some of the lowest cost of capital and most effective financial markets in human history.

If the Chinese markets are blocked that doesn’t mean the rest of the world is inaccessible.

Another aspect of government subsidies is that they mask incompetence.

[refurb]

Not sure why this is downvoted. The Chinese government has been quite transparent in terms of globally dominating several industries including EV through heavy government support.

It would make no sense to destroy your own industry because it can’t compete with a heavily subsidized foreign industry.

[amanaplanacanal]

If it is such a successful strategy, why doesn't everybody do it?