> Tesla is clearly benefiting from protectionism and its sales would collapse if BYD were allowed to openly sell in the US
So would most of EU car makers in Europe. China is not playing by the same rules and everyone with car manufacturing domestically is slamming them with tariffs.
How isn't China playing by the same rules? Every country subsidises and supports industry it thinks is important, surely nothing would stop Germany from investing into Volkswagen and BMW or the US from investing into Ford the same way China invests into BYD?
Environmental regulations around rare earth minerals needed for the batteries. China loosens them thus making it cheaper to mine which starves out all global competition that actually has tighter regulations which protect the environment.
Then of course there is cost of living and salary; both of which are lower in China compared to where most legacy auto manufacturers are.
So China can pay their employees less and pollute the environment more in order to create an affordable, very high quality vehicle.
I can understand a small amount of tariffs to help "even the playing field" but not the 100% tariff or whatever was proposed against BYD
Hm, how are tariffs state subsidies? They're a tax on some products to give other products a competitive edge, but that feels different from a subsidy?
And what does that have to do with China playing by different rules than the west?
If not for the tariffs, the domestic company would have to charge lower prices to make sales. Thus tariffs provide domestic companies with additional revenue from domestic consumers.
Tariffs and subsidies both help companies succeed, but they're not the same thing. For one, tariffs can only really help your country's companies be competitive within your country. Subsidies can help your companies be competitive globally.
So would most of EU car makers in Europe. China is not playing by the same rules and everyone with car manufacturing domestically is slamming them with tariffs.