You’re absolutely correct on the US topic, but one comment on the Chinese side: China does suffer from an excess of export focused production. Their excess of production capacity is artificial (created by Goverent investment) and has resulted in the need for continued Government cash injections.
The Chinese government investment injection has resulted in significant leads in at least two international markets (EV, and solar panels perhaps batteries by volume.)
The cost has been a parge amount for waste and loss of public money (there were a lot of of losses in their recent tech/chip investment for example.)
These losses came at a hard time when the general popilation was suffering from significant equity loss, mainly real estate. There is an argument to make that trying to spur the domestic market would be better than investing in overcapacity.
… Yes that is how production works in a healthy economy. You have multiple companies competing for the same consumers, resulting in over production.
Cars are a luxury object that are entirely unnecessary, so they aren’t a centrally planned industry.
The extra then gets sold off. But the fact you simply cannot buy most Chinese ev brands outside of china (and some belt and road countries) kinda proves the point. Besides BYD and Rivian, you’re not finding many Chinese evs outside of china, and those are just two of the top twenty manufacturers.
Nope, they’re private sector. Technically the state does produce some busses and of course electric trains; but consumer evs are entirely private sector enterprises.
These losses came at a hard time when the general popilation was suffering from significant equity loss, mainly real estate
Is this a reference to the 99 year leases people can get instead of full ownership or the citizens investment into big housing projects that some say are scams?
I am refering to the massive drop in real estate value that happen as over the last 2 years. Real estate is a primary wealth vehicle for urban Chinese.
You’re absolutely correct on the US topic, but one comment on the Chinese side: China does suffer from an excess of export focused production. Their excess of production capacity is artificial (created by Goverent investment) and has resulted in the need for continued Government cash injections.
The Chinese government investment injection has resulted in significant leads in at least two international markets (EV, and solar panels perhaps batteries by volume.) The cost has been a parge amount for waste and loss of public money (there were a lot of of losses in their recent tech/chip investment for example.)
These losses came at a hard time when the general popilation was suffering from significant equity loss, mainly real estate. There is an argument to make that trying to spur the domestic market would be better than investing in overcapacity.
…You understand the primary market for Chinese products, especially ev and solar, is Chinese citizens, right?
Its not even close.
Hmm, Chinese are a target for EVs, but the production capacity clearly exceeds Chinese civilian purchasing power.
I am doubting myself on this after your comment. I don’t know much about the domestic purchase volume but if EVs in China.
… Yes that is how production works in a healthy economy. You have multiple companies competing for the same consumers, resulting in over production.
Cars are a luxury object that are entirely unnecessary, so they aren’t a centrally planned industry.
The extra then gets sold off. But the fact you simply cannot buy most Chinese ev brands outside of china (and some belt and road countries) kinda proves the point. Besides BYD and Rivian, you’re not finding many Chinese evs outside of china, and those are just two of the top twenty manufacturers.
You have a good point.
EVs have no central planning in China?
Nope, they’re private sector. Technically the state does produce some busses and of course electric trains; but consumer evs are entirely private sector enterprises.
Is this a reference to the 99 year leases people can get instead of full ownership or the citizens investment into big housing projects that some say are scams?
I am refering to the massive drop in real estate value that happen as over the last 2 years. Real estate is a primary wealth vehicle for urban Chinese.