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An influx of Chinese cars is terrifying the West


pellinore

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Is China about to unleash another wave of deindustrialisation on the rich world? About 1m American manufacturing workers lost their jobs to Chinese competition in 1997-2011, as the country integrated into the global trading system and began shipping cheap goods overseas. This “China shock” has since been blamed for everything from rising deaths among working-class Americans to the election of Donald Trump. The rejection of liberal attitudes to trade also explains why politicians embrace industrial policy today. Now China’s carmakers are enjoying an astonishing rise. That stokes fears of another ruinous shock. In fact, the successes of Chinese cars should be celebrated, not feared.

Just five years ago China shipped only a quarter as many cars as Japan, then the world’s biggest exporter. This week the Chinese industry claimed to have exported over 5m cars in 2023, exceeding the Japanese total. China’s biggest carmaker, byd, sold 0.5m electric vehicles (evs) in the fourth quarter, leaving Tesla in the dust. Chinese evs are so snazzy, whizzy and—most important—cheap that the constraint on their export today is the scarcity of vessels for shipping them. As the world decarbonises, demand will rise further. By 2030 China could double its share of the global market, to a third, ending the dominance of the West’s national champions, especially in Europe.

An influx of Chinese cars is terrifying the West (archive.ph)

Edited by pellinore
  • Haha 1
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Oh good lord, "the west" must be easily terrorized!  :lol:

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On 1/12/2024 at 6:55 PM, Desertrat56 said:

Oh good lord, "the west" must be easily terrorized!  :lol:

If the quality is similar too the other junk they manufacture the one might justifiably be terrified as the wheels could fly off at any time.

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3 hours ago, WVK said:

If the quality is similar too the other junk they manufacture the one might justifiably be terrified as the wheels could fly off at any time.

You mean like the quality of Kia, BMW or Chevrolet?   I would not buy either of those cars, the quality is way down on them.   Of course the chinese cars are not going to stand up to the quality of Toyota, Honda or Nissan or Mercedes.   So what, people in the U.S. want cheap (or can't afford better) and don't care if they have to replace it every 2 or 3 years.   And those that can afford Chevrolet and BMW also never plan on keeping a car more than 3 years anyway.

Edited by Desertrat56
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