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Joined 2 years ago
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Cake day: October 11th, 2023

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  • Yes, China dumps EVs on other markets.

    But here are some extra insights to consider about the issue:

    • To curb dumping, many countries already have, or are introducing, high tariffs against Chinese EVs. Biden had a 100% tariff on EVs, Canada is 100%, India is 70-100%, the EU is up to 45%, Brazil is ramping up to 35%, etc.
    • Around 90% of all EVs China produces are sold in China. So even if EV dumping ends, it’ll have only a minor effect on production
    • Dumping is caused by over supply of Chinese EVs at the moment. Some countries, like the US under Trump policies, are deliberately attempting to drive down EV demand, further adding to the issue. And as with all markets, over supply can’t be sustained indefinitely, so it’s predicted that multiple Chinese EV manufacturers will go under or merge. This is normal in evolving markets
    • China is innovating much faster with EV tech, especially with battery technology. Meanwhile the US under Trump is removing incentives for EV production and ownership, and causing significant market uncertainty. This will have a far greater effect on Chinese dominance of the technology than dumping
    • China is in the majority of countries in offering government subsidies and tax breaks for emerging products, especially on things like R&D and infrastructure
    • The US and other countries also dump products on a significantly larger scale. For example, the US government subsidizes corn which is sold to world markets under production cost. Exports of corn from the US in 2024 were ~$14 billion, while Chinese EV exports were under $5 billion

    None of this is intended to condone China or any country dumping products, but as a warning about having overly simplified reactions to an issue without understanding the bigger picture.




  • Or your neighbour does all the work instead of you, so you decide to buy soap from them. They’re next door, while Walmart is across the county line, so you decide you won’t charge yourself the extra self-tax with your neighbour.

    Walmart"s soap, which used to be $2, is now $3, while your neighbour’s soap is $2.50.

    A week later your neighbour sees that demand for their soap is huge because everyone is self-taxing. So they raise their price to $2.95 to make extra profit.


    In case you think this is just a contrived fiction, this is exactly what happened to many goods, like solar panels, with Trump’s first-term tarrifs. Americans paid over double the average world price for solar panels.

    Worse still, Trump knows this happened, yet somehow this time will be completely different. <sigh>