Anonymous, 30 Jun 2024And how exactly will that "protect" the population? It certainly won't allow th... moreWell, we are not talking about a few hundred jobs here.
According to the European commission:
"The automotive sector provides direct and indirect jobs to 13.8 million Europeans, representing 6.1% of total EU employment. 2.6 million people work in direct manufacturing of motor vehicles, representing 8.5 % of EU employment in manufacturing."
Anonymous, 30 Jun 2024"Still direct subsidiaries through hidden means and shadow funds from the government to c... moreNo! Not if they abide by international treaties under the world trade organization! If the break them, then yes they can
Anonymous, 30 Jun 2024"Still direct subsidiaries through hidden means and shadow funds from the government to c... moreAnd maybe are even doing It.
Sinnaoi, 29 Jun 2024You are absolutely right there. Of course, production facilities in China will always have an ... more"Still direct subsidiaries through hidden means and shadow funds from the government to certain companies is problematic and should be adressed."
Why is It problematic? Western governments can do the same thing.
Sinnaoi, 29 Jun 2024I never ever said or thought European or American companies have superior ethics... Every comp... moreAnd how exactly will that "protect" the population? It certainly won't allow them to buy cheaper cars.
That they will not lose their jobs by baring chinese imports?
Sinnaoi, 29 Jun 2024Volkswagen is selling cars in China that are produced in China.I don't see your argument ... moreThey can penalize them.
Anonymous, 24 Jun 2024Then let's not forget that this move will only "protect" sales in EU. With less... moreYou are absolutely right there. Of course, production facilities in China will always have an edge over EU or US because of the lower staff costs. That's something no EU or US measures can adresse and that's something western companies have been taking advantage of by moving their facilities to China (or other low-cost countries, as has correctly been mentioned in this discussion.
Still direct subsidiaries through hidden means and shadow funds from the government to certain companies is problematic and should be adressed.
Anonymous, 24 Jun 2024EU can play the protectionism card, but then China will do the same. Do you know what is the ... moreVolkswagen is selling cars in China that are produced in China.I don't see your argument here....
Anonymous, 24 Jun 2024exactly, ok now connect some more dots. western companies with jv pay a fraction but vw car... moreI never ever said or thought European or American companies have superior ethics... Every company aims for the money and nothing else. The responsibility of local authorities is not to the corporations but to the population and that's who such measures aim to protect.
Anonymous, 24 Jun 2024EU can play the protectionism card, but then China will do the same.
Do you know what is the ... moreThen let's not forget that this move will only "protect" sales in EU. With less sold cars in China, they will need to find new markets, but there they will have to compete once more with cheaper PRC cars.
And which car do you think the people there will choose? The cheaper one.
I see EU's competitiveness pretty gloomy to be honest.
Sinnaoi, 24 Jun 2024Of course they are. European or Chinese, production facilities in China pay their workers a fr... moreEU can play the protectionism card, but then China will do the same.
Do you know what is the best selling brand in China? Volkswagen
For VW is China the biggest market, bigger than Europe.
And considering, they have likely better margins there then this move will hurt them a lot.
Sinnaoi, 24 Jun 2024Of course they are. European or Chinese, production facilities in China pay their workers a fr... moreexactly, ok now connect some more dots.
western companies with jv pay a fraction but vw cars in china are not cheap cheap.
how come no one in germany is protesting these unfair practices.
why does vw with superior german/euro morality/ethics say you know what..
lets pay our chinese workers the same as our euro workers.
why do they just pocket the money instead.
sounds like germany is contributing to slave labor.
this is evident with all western companies throughout the global south.
take a look at wages. why is mexico today still so poor even though it has free trade with the us.
a tesla worker in china makes a lot less than a tesla worker in eu/usa
but teslas are not a lot less than eu/usa
Qidamin, 24 Jun 2024Not really sure about Chinese Government subsidies. A German importer wanted to import Volkswa... moreOf course they are. European or Chinese, production facilities in China pay their workers a fraction of what a German or European worker earns. A factory in Europe would have to sink the salaries to a Chinese level to be as competitive. So Europeans have to choose: either that or protectionism. I chose the second
Not really sure about Chinese Government subsidies. A German importer wanted to import Volkswagen electric car from China because even with freight and taxes he would have sell the cars cheaper in Germany. He has been blocked by German authorities. So even European brands coming from China are cheaper, I don't think they get subsidies from Chinese gov.
"But Tesla isn't the only problem. As other countries noted, the Chinese EV industry has the potential to flood the world market due to subsidies from the Chinese government. This would ultimately lead to dependency and crushing local industries."
I find this so ridiculous, when these countries flooded others with their products, crushing local industries, because they couldn't compare to a more superior product, It was fair, now when the same happens to them, they are crying how It's not fair.
Even without any "subsidies" If there are really any significant ones, It would still be a problem for western car makers. They are no longer technologically more superior, yet are still more expensive and that's the real problem.
Why do you think western countries don't subsidy their car makers instead of putting tariffs on Chinese EVs? Because subsidies would come from their budget and with tariffs you get extra more to the budget and "protect" your car makers. Who cares that the buyer has to pay more.
Of course China will make counter measures against US, EU, CA in their home market and will still export to other countries, which will welcome cheaper Chinese cars than the costlier western ones, because they don't need to protect a nonexistent local industry.
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