we have to acknowledge that western countries outsourced and outsourced and outsourced for decades in order to lower costs and maximize profits. American and European consumers were happy to take advantage of cheaper labor and lower environmental and human rights regulations in order to get their stuff cheaper. And, for the most part, no one was concerned that stuff produced in China took advantage of all those differences in order to make production of the same goods in the US and Europe uncompetitive.
US and European automakers were long required to form a joint venture with a Chinese company in order to produce electric cars in China.
Or IC vehicles also.
it was Tesla that was the first auto company (not just electric car company, but auto company of any kind) that didn’t have to fulfill that requirement and could build cars in a factory 100% owned by Tesla.
There’s concern in Europe and the US about government-supported car companies entering their markets. But what happens if big car companies in these markets go bankrupt or risk going bankrupt? They are “too big to fail” and just get bailed out. Are they not, then, unfairly government-supported companies?
US and European companies also get extensive subsidies from national, state, and municipal governments to build factories and produce goods within their borders. There are vast tax breaks, land giveaways, and a variety of diverse subsidies for manufacturers. Again, does this not provide an unfair trade advantage? Why is this okay but Chinese car companies getting the same kind of support from their local, state, and national governments is not?
“China already applies a 15% duty on all electric vehicles imported from Europe.” Why? Why is it okay for China to put tariffs on imported electric cars but not okay for Europe to do it on Chinese electric cars, and if there’s a rationale for the tariff from Europe to China being 15%, who’s to say there isn’t an equally fair rationale for it being 21% in the other direction?