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.
I’m so confused here. I was under the impression that the entire argument for capitalist markets was that they produce cheaper and better goods than is possible to do with central state planning. Yet, here we have the capitalist west complaining that Chinese state driven model if producing goods that western companies are simply not able to compete with. Somebody help me understand.
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.
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.)
@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.
Chinese brands aren’t receiving 45% subsidies last I checked. However, this would be a dumb way to try and restore competition since it just punishes consumers in Europe.
Consumers need to wake up. I’d rather pay a lot more for my car rather than:
A) rely on Chinese people exploitation on low pay and no work rights
B) no environment protection in China
C) generally lower quality
D) killing jobs in Europe
E) making Europe depend on China
When capitalism is distorted, then the state must intervene
I’m so confused here. I was under the impression that the entire argument for capitalist markets was that they produce cheaper and better goods than is possible to do with central state planning. Yet, here we have the capitalist west complaining that Chinese state driven model if producing goods that western companies are simply not able to compete with. Somebody help me understand.
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.
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
https://archive.ph/uzLgx
@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.
Chinese brands aren’t receiving 45% subsidies last I checked. However, this would be a dumb way to try and restore competition since it just punishes consumers in Europe.
Consumers need to wake up. I’d rather pay a lot more for my car rather than: A) rely on Chinese people exploitation on low pay and no work rights B) no environment protection in China C) generally lower quality D) killing jobs in Europe E) making Europe depend on China When capitalism is distorted, then the state must intervene