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gloryjulio | 1 month ago

This. Most of the Chinese products met the definition of dumping. They over produce with suppressed wages, currency exchange rate, and government subsidies. The current generations of Chinese workers do not benefit from this. To clarify, they have top products, some are well paid. But the general trend is dumping.

I am curious when will other countries would actually start of defend their industries properly.

discuss

order

concinds|1 month ago

Industry talking points, meant to convince you to subsidize them.

Retric|1 month ago

You don’t need to subsidize domestic companies to adjust for currency exchange rate manipulation.

The government could for example impose a tariff that covers half the difference thus maintaining an unfair advantage for Chinese companies. Thus profiting from the manipulation without placing excessive burden on domestic companies.

eru|1 month ago

Shouldn't we be writing thank-you notes to the Chinese tax payers who so graciously subsidies cheap cars for us?

I agree that Chinese workers and tax payers are hurt. But why do we need to 'defend' anything from their generosity?

numpad0|1 month ago

It'll slowly hemorrhage your industry base, and your country will end up being a giant wasteland with guarded compounds here and there, eventually. You wouldn't want that.

tooltalk|1 month ago

>> Shouldn't we be writing thank-you notes to the Chinese tax payers who so graciously subsidies cheap cars for us?

I'd write a BIG thank you note to the Chinese taxpayers if they could send a direct cash payment instead, so I can use it towards my next EV purchase (of my own choosing).

Otherwise, I prefer not to participate in China's predatory pricing tactic enabled by illegal export subsidies to undermine foreign competitors and distort global market.

maxglute|1 month ago

It's been 20 years, most industries PRC value engineers to outcompete west stays cheap, because they're not dumping, they structurally bring cost down. The current generation of Chinese workers overwhelmingly owns a house, makes above median PRC wages, meanwhile RoW consumers, most without rivalling industries, benefit. Like at some point PRC dumping starts to look like cope, they ain't dumping, their competitors in other countries, who get plenty of subsidies, just ain't using it to compete.

StopDisinfo910|1 month ago

> They over produce with suppressed wages, currency exchange rate, and government subsidies

I mean, so does Germany.

Technically, the USA only has the massive subsidies part since the IRA came to be but they also have tariffs so, not doing too bad distortion-wise.

At this point in time, pretty much everyone is already defending their industries. China is just playing its cards better than the others and with a head start when it comes to EV.

ericmay|1 month ago

Tariffs aren’t the same thing as suppressing wages, overproduction, government subsidies, and managed currency to prevent deflation.

In the case of the US with respect to China they are mostly a retaliation to the above anti-competitive practices.

But I hear you on who is playing their cards better. I don’t think China is playing theirs very well. They pissed off both the US and EU, and even Mexico is enacting tariffs on Chinese products. American and European countries are taking action to stop Chinese anti-competitive practices. Nice factories you have there, too bad there’s nobody to sell those products to.

I also don’t know what you mean when you say for example the US and Germany are suppressing wages. I’m interested in what you mean by that specifically.

tooltalk|1 month ago

>> I mean, so does Germany.

How does German gov't subsidize their automakers' overcapacity? Their EV subsidies aren't/weren't exclusive to domestic EVs or EVs using certain domestic part. No issue with subsidies that are equally available to all eligible producers, domestic or foreign.

This is unlike in China where market access and EV subsidies were conditioned on forced tech transfer since 2011 -- for which China was litigated before the WTO (see WT/DS549 China - Certain Measures on the Transfer of Technology). Or worse, conditioned on using local batteries made by local battery "champions," CATL/BYD/etc only to funnel all NEV subsidies back to the local battery industry and undermine foreign competitors. In other word, no NEV subsidies to any EV with foreign batteries to protect local "champions." This practice is also illegal under Article 3(b) "Prohibition" of the WTO's Subsidies and Countervailing Measures (SCM) Agreement.

>> Technically, the USA only has the massive subsidies part since the ...

Biden's IRA subsidy ended in September. And let's realistic, the IRA was a weak and short counter measure against China's illegal practices past 15 yeras.