Comment on Public transit in Chengdu, China versus Toronto, Canada
gandalf_der_12te@discuss.tchncs.de 4 days agoElectric cars - the cost is mass government subsidies for BYD and a couple of others. BYD doesn’t make money if they sell you a car I believe, they make money from the Chinese government if they sell you a car. Even if you’re in another country. China wants their EVs to dominate the market and that’s a strategy. This is why the EU had to raise tariffs on Chinese cars. Otherwise the European auto industry would simply die.
Why doesn’t the EU simply also subsidize their EVs?
boonhet@sopuli.xyz 4 days ago
They’re for-profit companies and so far pretty successful without direct subsidies. EU countries usually have subsidies for purchasing EVs (regardless of manufacturer) rather than subsidizing the manufacturers directly - this leaves the consumers more choice and has a similar or maybe even better effect on EV adoption. On the climate side of things as well as public health and equal opportunities for people, transit investments would be better than outright paying BMW and Mercedes to make their EVs cheaper. China, however, doesn’t just want EV adoption on their own roads, China wants THEIR EVs specifically to dominate the world. Usually this is seen as unfair, regardless of industry, and is one of the few valid reasons for tariffs in an otherwise free global market.
The funny thing is, if the Chinese subsidize their EVs and the EU tariffs them, the tariff money could then be spent on EV subsidies - bringing all the different manufacturers to equal ground again.
gandalf_der_12te@discuss.tchncs.de 4 days ago
yeah this makes sense to me
i guess there is a lot of ways to subsidize something. for example, if you want your local EV company to produce cheaper EVs, you could also subsidize public housing sothat rent is cheaper, sothat workers have cheaper rent and don’t need to ask for such high wages to cover the cost of living.
boonhet@sopuli.xyz 4 days ago
Lots of things, yeah. Many countries have set up energy efficiency loans too - for home renovations, or for business purposes. The idea is that you give out low interest loans so people (or companies) can achieve what they need earlier. I don’t know if anything like that is in place in Germany, France or Sweden (or Italy, I suppose they still have a bit of their car industry left), but if I was in a relevant position in one of those companies and there was a need to, say, build a battery manufacturing plant locally so that EVs could be built for cheaper and less dependence on existing battery manufacturers, I’d definitely go ask the relevant nation’s government, parliament and/or business development department, for a loan, tax break, or subsidies. Worst that could happen is they say no.
But yeah, an already successful car manufacturer getting straight on subsidies for selling cars they’re already making and selling anyway - extremely unlikely in most countries I’d think. Now if one or two of the German big 3 were on the verge of bankruptcy because of Chinese competition, that might change. Still sounds unlikely though. China’s GDP is 4x that of Germany’s, they can afford to keep subsidizing their shit for longer.