The European Union voted on Friday to impose tariffs as high as 45% on electric vehicles from China, threatening a broader trade conflict with Beijing which has already vowed to protect its companies.
Capitalists hate capitalism. Competition is so irritating, because someone might undercut you. (And other people would cheat to win, just like you would, so you can’t ever relax.)
They tend to be more efficient. However central planning in China which ramped up production yet has reduced demand, means an excess supply.
So, selling to Europe or USA makes sense to offload that supply. In a capitalist, closed system, they would have ramped down production, but also wouldn’t have had the capital to ramp up production so quickly.
If they weren’t seen as a strategic asset, then Europe and USA wouldn’t care that China is subsidizing cheaper products. They dont want their car industries dead as then they are dependent on China.
Ramping up production didn’t reduce demand. Demand reduced due to a softening Chinese economy, mainly due to debt and housing.
I agree, it’s not excess supply when you can sell it overseas. However, its also not central planning when you wanted to Ramp up supply for domestic consumption but end up using capitalism to keep efficiencies.
Companies ramp down production all the time. What do you think redundancies and factory closures are for? They react to market conditions or seek new markets (as happened in this case).
I thinknyouve got it backwards. Central planning can efficiently produce anything. As in, it can make as much of a product at the cheapest price as possible. The problem is central planning is less efficient at deciding how much is needed. It will often over or undershoot. Thats what happened here. Tonsaybthey can still sell overseas, so its still central planning being efficient is incorrect. Central planning didn’t work to produce the needed amount so trade through capitalism is being used to improve efficiency of the capital used.
@yogthos@geneva_convenience These tariff rates are calculated on a per manufacturer basis based on the subsidiaries that these manufacturers receive from their country. So it just restores the competition.
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Capitalists hate capitalism. Competition is so irritating, because someone might undercut you. (And other people would cheat to win, just like you would, so you can’t ever relax.)
And I’m sure those Chinese workers definitely have the same compensation and rights as American or European workers.
having morals is a skill issue that leads to higher operational costs
If only there were international organizations that could enforce standards. Like the WTO for example.
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They tend to be more efficient. However central planning in China which ramped up production yet has reduced demand, means an excess supply.
So, selling to Europe or USA makes sense to offload that supply. In a capitalist, closed system, they would have ramped down production, but also wouldn’t have had the capital to ramp up production so quickly.
If they weren’t seen as a strategic asset, then Europe and USA wouldn’t care that China is subsidizing cheaper products. They dont want their car industries dead as then they are dependent on China.
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Ramping up production didn’t reduce demand. Demand reduced due to a softening Chinese economy, mainly due to debt and housing.
I agree, it’s not excess supply when you can sell it overseas. However, its also not central planning when you wanted to Ramp up supply for domestic consumption but end up using capitalism to keep efficiencies.
Companies ramp down production all the time. What do you think redundancies and factory closures are for? They react to market conditions or seek new markets (as happened in this case).
I thinknyouve got it backwards. Central planning can efficiently produce anything. As in, it can make as much of a product at the cheapest price as possible. The problem is central planning is less efficient at deciding how much is needed. It will often over or undershoot. Thats what happened here. Tonsaybthey can still sell overseas, so its still central planning being efficient is incorrect. Central planning didn’t work to produce the needed amount so trade through capitalism is being used to improve efficiency of the capital used.
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@yogthos @geneva_convenience These tariff rates are calculated on a per manufacturer basis based on the subsidiaries that these manufacturers receive from their country. So it just restores the competition.
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