Are EVs made in China subsidized illegally? Does that justify tariffs?
“The EU is seeking to reduce its reliance on the world’s second-largest economy, particularly for materials and products needed for its green transition.”
" Chinese EV makers, from market-leader BYD (002594.SZ) to smaller rivals Xpeng (9868.HK) and Nio (9866.HK), are stepping up efforts to expand overseas as competition intensifies at home and domestic growth eases. China’s auto exports surged 31% in August, China Passenger Car Association (CPCA) data showed.
The European Commission said China’s share of EVs sold in Europe has risen to 8% and could reach 15% in 2025, noting prices are typically 20% below EU-made models. Popular Chinese models exported to Europe include SAIC’s MG and Geely’s Volvo."
“Kingsmill Bond, senior principal in the strategy team at the Rocky Mountain Institute, said Chinese producers in 2022 benefited from EV battery prices of $130 per kilowatt hour against a global price of $151.”
iirc, China joined the WTO in the late 90s. I don’t think you can slap a protectionist tariff on products because you feel like it. You have to make your case to the WTO, “dumping” or some such thing.
I just replied in a thread about Krugman’s interview on Amanpour about the likelihood of China becoming more aggressive about exporting.
By the time it gets through the legal process at the WTO, none of us will be alive. Now will we? And if we lose that case at the WTO that has no teeth according to…drum roll, please…China ignores the WTO in spirit, in acts, and in reality long before and after all things involved with the WTO…unless it suits China.
I doubt it. The country is turning inward with limited water and other resources. Those days are over serving the world in a growing and unlimited fashion.