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gloryjulio | 1 month ago
I am curious when will other countries would actually start of defend their industries properly.
gloryjulio | 1 month ago
I am curious when will other countries would actually start of defend their industries properly.
concinds|1 month ago
Retric|1 month ago
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
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
tooltalk|1 month ago
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
StopDisinfo910|1 month ago
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
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
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.