Danger Ahead, China Is Pushing, Pushing, Pushing

Side view of crop unrecognizable male refueling modern racing automobile in petrol station in evening

Image Source: Pexels
 

There is danger ahead and the ramifications have the potential to be massive and devastating. China is pushing to become the automaker of the world, and this is a game changer. Automobiles are one of the largest and most expensive items that consumers purchase. China's goal translates into putting all competitors in other countries out of business.

In the area of efficient economies, a system of state-controlled markets and subsidies has a strong advantage over market-driven capitalism in the short term. Time and time again, it has been proven that heavy-handed government interference in a market can rapidly ramp up an industry far faster than free market forces. Governments can change rules, expedite approvals, fund, or turn a blind eye to those they favor. 

I contend that China is using Elon Musk and Tesla as a useful pawn to muddy the issue of what is fair in the area of free trade. After all, if Tesla, which is identified as an American company, is allowed to sell cars in China, why shouldn't Chinese companies be allowed to sell their cars in America? Furthermore, isn't Tesla's success an indication or even proof that EVs are the future and best way to avert climate change. These are both conclusions I do not accept.

CNBC video recently explored how China has the manufacturing capacity to supply half the world's cars. It delves into how China has its eyes on the United States and why insiders say it's only a matter of time until it affects America's auto industry. Even though. President Biden slapped Chinese automakers with stiff tariffs that effectively double the price of an imported EV some insiders warn tariffs may not be that effective in the long run, and may even do more harm than good.

This push to export Chinese cars all over the world is another gambit to expand China's power and decimate its rivals and competition. China has and is playing the same game in a slew of other industries. This has not yet gained the attention it should, and by the time it is obvious to most people, China will be the only go-to option in many key industries. Sadly, the auto industry is an area where Chinese products can rapidly make major inroads or progress if allowed. This is indeed a gambit that will be difficult to halt because consumers want inexpensive vehicles.
 

How do people across the world feel about China?

Infographic: China: A Positive or Negative Influence in the World? | Statista

The number of countries looking unfavorably at China has increased since the poll started in 2019. The countries with the most respondents favoring China were Nigeria, Kenya, Thailand, Russia, Egypt, and Saudi Arabia. Still, views of China are broadly negative across most of the advanced economies. Roughly three-quarters of respondents in Japan, Sweden, Australia, Denmark, the United Kingdom, and Germany had a negative view of China. It is important to note these "feelings" are fluid.

We must remember, China's economy is false and manipulated, much of China's growth came from "over-constructing everything," this is equivalent to building bridges to nowhere. Now China wants to, in a predatory manner, take jobs away from other countries to expand its manufacturing away from constructing ghost cities and towards producing high-end items needed across the world.  

To be clear, I do not consider myself a "Chinaphob," or should I say, to be sporting an exaggerated or unfounded fear of China. My concerns are deeply rooted in China's actions over the last several decades. Rather than becoming more open and free, its government has become more controlling and authoritarian. It is far past the time we should be calling a spade a spade. 


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