So what the EU is doing is, it won’t allow the Chinese manufacturer to pass these cost reductions down to me as a consumer and force it to charge a “minimum price” instead, am I reading this right?
That’s my understanding of the article text, though obviously there’s not a lot of detail there.
I assume that there’ll be more analysis of it once the thing becomes public.
EDIT: It might also benefit internal combustion vehicle manufacturers, if it makes EVs less-competitive with them, at least until there’s a hard cutoff and requirement to transition to EVs.
So what the EU is doing is, it won’t allow the Chinese manufacturer to pass these cost reductions down to me as a consumer and force it to charge a “minimum price” instead, am I reading this right?
Not exactly. The chinese state is subsidising their car export prices - which is what the EU has a problem with.
Ah yes, the “benefits” of an authoritarian state: they can redirect public funds to undercut any competition?
Yeah, not just redirecting funds, they can also use forced labour to lower their production costs.
That’s my understanding of the article text, though obviously there’s not a lot of detail there.
I assume that there’ll be more analysis of it once the thing becomes public.
EDIT: It might also benefit internal combustion vehicle manufacturers, if it makes EVs less-competitive with them, at least until there’s a hard cutoff and requirement to transition to EVs.
There is a hard cut off in 2035 and emission laws pretty much force a share of EVs. Starting next year that will be about 37%.
However a lot can make a car better, which has nothing to do with the drive train. Old car makers certainly can play that game.