Summary
China has become the world’s largest car exporter by dominating electric vehicle (EV) production, surpassing traditional carmakers in Europe, Japan, and the U.S.
This shift stems from China’s heavy investment in battery technology, supply chains, and generous subsidies, enabling it to produce cheaper EVs, like the BYD Seal, compared to Western competitors.
Europe and America, reliant on outdated internal combustion engine expertise, have struggled to adapt to this disruptive innovation.
Many nations are imposing tariffs on Chinese EVs, but without robust domestic battery infrastructure, Western car industries face mounting challenges as the EV transition accelerates.
Chinese constructors indeed told this plan, I’ve seen the interviews, they’ve been following it exactly and got the results they were after. We knew this 10 years ago. There should not be any surprise.
We knew the Western manufacturers would deny, delay and lobby against this to keep shareholder value up, to cry foul when sales take a hit and they did not disappoint. It’s the classic market disruption, something we’ve seen many times in history, but now on the losing side. Again, no surprise.
Capitalism has a fatal flaw with long term planning and it’s been exploited masterfully by China. Actually China had plans to uproot the entire fossil fuel sector and replace it with their renewables, so hold on for a lot more drama.