of the the, the ready to take up. let's do that right now on our end the trying those electric vehicle industry. so i thought keeping points well it's life or cold left under the pressure on one front. domestic manufacturers are engaged in

brutal price worth of feature bedrooms. where on the other, they face global threats from steve terrace and substitute the you as us a are ready to slam the brakes on chinese tvs going global. the chinese domestic market is not the biggest in the world. yes, only test last b, y, b and b. all adults has been able to make a profit. we have so left with the winners these rates. but what up all the cash with a will $400.00 electric vehicle companies have bad and the staggering 90 percent have gone bank crossing, just the 60 it's only giants like tesla b y b and b also have managed to turn a profit in this cost. so much to this is about of, of survival to see who is the strongest manufacture. no chinese companies have gained a cost advantage through cut throat competition in,

in recent years. so only the strong survive in china. we believe we've done this is basically all easy production supply chains are under chinese control, given china and almost insurmountable advantage that it's nearly impossible for the germans to catch up to no one. what's the chinese government's role in? how the china c electric vehicle industry getting such a head start? and what does the future hold behind the success of companies like b, y b? how many have been left in the task brought to you by the deputy rep? let's so into the i'm told stories of china. electric vehicles exist. busy in may 2024, while jermel was a steal deliberating visor on how to impose a special terrace. i'm chinese made electric vehicles. the united states took the size of step, is decided to raise tigris on chinese made electric vehicles from 25 percent to 100

percent. folks. look, i'm determined that the future of electric vehicles to be made in america for you and you'd work period. now do you then find them find out what is yes and the us government's decision to quadruple the punitive tariff. not to 100 percent. is a very, very drastic stand up to so far beyond what might be expected. would you say it lets me see cartoon network is we all with us bar austin? i was a bit surprised and i find a disproportionate the automotive industry is highly mature. over the past 30 to 40 years, we've seen increasing global openness and integration, removing trade barriers and a free competition is good for the economy. so i think cutting things off like this is a very negative signal and then you've got to you, it's not it's and so no. so don't forget that justification for the huge tire of inc. chris is the, the chinese government has been heavily subsidizing is industry,

particularly the steel solar and the sectors leading to a massive over capacity. we have this not tradition. of course, we already know that china is over. capacity in the sector is a global issue about setting punitive tariff at 100 percent is very, very severe. and this is certainly because president joe biden that's currently in campaign mode when you didn't to binds this moment time in by comes to send that. well, a 100 percent terrace sounds huge, meaning the price of, i mean pause a chinese e v in the u. s. doubles for the chinese industry and global each rate is not a significant issue. there's other things of notice on the affects, the $12000.00 davies that were exported from china to the us last year was which is really a negligible proportion of chinese export isn't getting on time funding. she needs

as an export and politic toronto's in comparison. try that, exported over 5000000 vehicles globally in 2023. the economic impact of selling child cells and fewer eaves in the u. s. is minimal. type is another you can almost doesn't change much economically. it's more of a political statement. of course, there's also a domestic political dimension, especially in an election year. i was this and it's also a statement against the mass of the subsidies in certain industries in china, in recent years. it's, and you have mentioned subsidies several times now before delving deeper into the subject. let's see how europe is dealing with these issues portrayed to be fear, the access to each other smart. it also needs to be rest of the program and we discussed how to make real progress on market access. i remain confident that more progress can be achieved. at the same time, we stand ready to make for use of our trade defense instruments. if this is

necessary, european commission president was off on the line, made his statement after meeting shooting you may 2024 as the traits defense instruments she referred to include imposing tyrus on chinese eves. similar to the u. s. approach confirmed facts include the use announcement in october 2023 of a formal investigation into subsidies for chinese made ease. say it had sufficient evidence. it came shortly after numerous electric chinese vehicles were showcased at the munich international. more to show em let's. yeah. tina i just conference me on last year and china exported 1500000 ease of which 500000 went to the you and the only 12000 to the us as high as the one of the highest means to you has a much larger influence on both the u. k. more responsibly and broadly discussed

these issues with the badging government as well. and it's influence in china is likely greater than that of the us due to the minimal number of eaves and exported to the us. um, even those will be in the edit cool, todd sorted ought not to explore people the like the us, the us main criticism of tying those e v industry revolves around subsidies, particularly focusing on over capacity. the quote of doctors ations is that by providing massive subsidies to key industries including the bees, the chinese government has created significant over capacity. but as our as to, to yours have pointed out in previous episodes, europe and the us have also provided substantial subsidies to industries like

a b y even is just so much focus on, criticizing the chinese government for its subsidies. to answer this, we need to understand the extent of aging subsidies. these are the 2019 statistics for industrial with subsidies provided by the chinese government as compared to t o e. c d countries. trying those about sweet times that of the 2nd place in the united states, nearly 10 times that of japan as more than 15 times that of germany, a significant portion of chinese subsidies spend to the sector china, a long shot pilot project to support the development of eaves as early as 2009 though the subsidies have been decreasing in recent years. my china is made this a national goal and pursued a good industrial policy. i need to those people to take them all the time. his

government's approach was to gradually encourage enterprises to enter the new energy vehicle sector while supporting the development and production of battery technology. just related to roll materials. this gradually established a comprehensive e b industry chance in china, just being honest. mitch soto lumen on the months my off the investment. of course, this was all backed by government subsidies and encouragements, and sometimes direct investments from government supported funds on this is go to industrial policy. and well, chinese companies obviously benefited greatly far and companies like tesla also profited from this policy policy over to that was done nutrition, postpone eating company fights and ultimately failed due to a broken funding trans. never to less buy's and also received subsidies from the chinese government. it'd be kind of, i is the we also had some government capital,

but it didn't help us at that stage. that's not so it's not that the government unconditionally intervenes in the market. but do competition still exist in boxes so that it's not all that develop? i'm not understanding the full all of subsidies provided by the chinese government to the sector is no easy task. how i work from this chart of approved new energy vehicle purchase subsidies. we can get a glimpse of just how much money is involved. and here are the top 10 companies that received these subsidies leading the pack a, b, y b and the gag group, which received massive direct government assistance from 2018 to 2022. particularly in 2022. this direct subsidy to local companies,

rather than following ones, is a major point of criticism from europe and the u. s. as it impacts fair competition in the international market and leads to a significant over capacity. gina, have shown china has had over capacity for decades due to it system, which is not a free market economy, but state controlled on the windows. the data prevents the government's decide to build a factory. it often isn't based on market criteria, but rather is simply executed shelters, leading to this of and capacity or something on the shopping is a complicated, complex, the cheapest local governments across china is provinces. have greatly contribution to the overall capacity port. a mold in china, nearly every province posts numerous and national level, t industrial parks or development zones. the purpose of planning on the even advertising slogans and promotional reviews of these areas are very similar to

ensure economic growth and maintain the political standing. local governments have heavily subsidized the local manufacturing and high tech industries from an economic perspective, subsidies these toward market mechanisms and lead to welfare loses for society as a whole. however, europe and the us have also been active in providing subsidies, but it comes to the criticism of chinese subsidies. i believe this is a pretext to electricity is government has massively supported the sector, but this is no different from good industrial policies in europe or the us think about air bus in europe, and think about that. it could have become a market competitor without substantial subsidies and industrial policy support to point it to go. however, some of you with that chinese government subsidies differ significantly from dolcy

in europe and the us national china indeed operates different. as i mentioned earlier, every provincial government too heavily subsidized as local manufacturing. i'm fine in this context. they naturally have at least support local companies before tuesday, not tuesday, the high motion on beach must be the chinese government's actions have multi. if i say that impacts on the global economy, talk to each of us, mine in mind, always on kind of this issue can also be viewed from this perspective. a chinese government is wasting money by pre selecting industries to support, creating huge capacities in those fields which makes these products very, very cheap, and then not easy to compensate it. and just helping me, that's what's in this. these are prove to comes constance degree sam, or as worldwide benefit from this, such as with cheap solar cells, mtv is the altos, and what frustrates me about this discussion. industrial policy is essential,

and germany came out of for the weakening auto industry, the ultimate. but what about the climate today? it's been completely forgotten. we've set the goal to become carbon neutral because it regarding global emissions environment goals. we're at the last minute must group on it and we need to bring affordable eaves to the market as quickly as possible to help achieve this goal. all this and in, not the there are plenty of forward. will you be using this find these markets with the rapid expansion of continuous price cuts by companies like b, y, the ged on cherry, china, see the market has become the most competitive in the world. to come from. this is a battle of survival to see who's the strongest manufacturer and chinese companies have gained a cost advantage through cut throat competition in recent years. and so only the strongest, survive in china, snacks, new value, melvin's, you know, in recent years, trying these government has significantly reduced subsidies for the industry. that

market forces the site, the face of the company. a mom that you i, the stands out as a clear winner having become the board largest e b maker by sales in 2023. what is the secret behind the success of trying these ag market leaders like b, y, d, e 's? this cost saving economies of scale and profitability have been the fundamental principles of the automotive industry for a 100 years. you might need some marketing. for example, b y d initially wasn't part of the traditional automotive industry, but was a battery manufacturer. and that they quickly realized that in the east, after the battery is the core components leading them to focus on a completely different technological pass code. you know, what's their b y d is number one, simply because they started focusing on this issue. where are they on a success factor? similar to tesla is the vertical integration of the battery from the start. they

relied on having their own batteries, which is a major cost factor to cost and talk to us. now let's look at those who have fallen in the tiniest e v market. please stand up and pay your respects to this one's bushes players or didn't make it the, or the usage of some of the manufacturers that have recently been wiped out. except for b, y d, and we all told, oh, you mean makers are losing money on i, we caught, sold this includes, well we got it brands like neil ix paying. i cho on show me currently they are 0100 new energy vehicle companies in china. with almost every providence and speech

and having its own ultimate goal not despite the large size of the chinese market, having over a 100 e v manufacturers is obviously too many one for these winds. even the central government says only about attempt as many are needed. a selection process is happening now, and some provincial governments will continue to try to support their local manufacturers to, to, to hire a machine not and is the chinese market is crazily competitive, small businesses? oh, i believe every major transformation requires multiple players to participate and unfortunately some will disappear like my own company bytes and the data them find the item is named by crush it and other industry insiders tell us that the many ways of so many companies file is that the grossly under estimated the cost of call manufacturing. there is

a consensus in the industry that we felt at least $2000000000.00 is thought up capital. it's not even for us talking about creating an e b brand. the company still surviving in the chinese smockey, which includes trying this like b, y, d, g, d, i'm chevy. which has achieved economies of scale as well as new payers, like neil explained on 7. add to that the you and the de brands, backed by traditional automakers. blackstone full size on deck. the competition is already tough with makers under intense pressure pressure on the list, agree with the central governments assessment. that's a much smaller number of companies will so far as it should be on some time it's hard to say who will survive. some say only $5.00 to $10.00 companies will remain, but i don't believe that china,

it was just too large. and every provincial government has its own company. i think 20 to 30 companies were over them and i saw the dice and we'll continue the next 5 years. we'll see even more intense competition companies. but i believe any of us on that you might have to be by 2030. we'll see these have a global market penetration of over 50 percent. so if half of the board call market will soon be electric. how much all that will be chinese. it's a china beckett's to reach over 1000000 car exports. however, it only took a year to go from by median to, to meetings another year, to a surprise to see media in 2020. so we try not exploded over 5 medium vehicles, becoming the boards largest con, expire to install the new stuff to the screen. i don't think this growth will

continue as entire regions will start sealing off their markets. currently only the europeans haven't done so, but they probably will. soon what we're seeing is essentially marketing closing. and chinese automakers will also be affected and also as they won't be able to continue marketing their cars globally. my dog. you're also state finds this a mark defense, a closer look at the top 10 destinations for trying these cars exports in 2023 suggests that the threats of significance, the type of increases in the us and europe won't stop chinese cars from finding buyers are wrong toward the u. s. ranks for teens and germany ranks sixty's among the export destinations. in contrast, for germany try those car market remains crucial. the detroit,

the extent of german manufacturer and skill set like a huge portion of their cars in china. so europe suddenly says we will close our doors to chinese manufacturers. china could easily say we will close our doors to german manufacturers, which could be a disaster for the german economy, then economy with the door to the bookshop. try these makers need to be able to compete in the market where buyers demand the latest technology and features. but that's not the own advantage over established german brands. as it is a company, not this combination of technological development and hardware and software along with the subsidies and the fact that basically all the production supply chains are under chinese control, gifts, china and almost insurmountable advantage. that's nearly impossible, before the germans to catch up to watch and fox. no one there's a battle has only just begun on the list like fedex. we believe that the u. s. is

currently protecting its domestic industry by copying china's own strategies as an issue designed in over p. m. lots. now i would say that europeans have no choice but to follow the path already taken by the chinese hands. now the americans hold mountains means english. they must now engage in industrial policy, define key technology is more and see where they may already be vulnerable and go from this fund to one is it's by seem like a brutal survival battle. but the words twice, organization has long sets rules for stocks, disputes, unfortunately, almost no major power is willing to follow them. now, the, or the more to nothing on record in multilateral coordination and world trade has become very, very fragile lenses are me if i may say, so he took the w t. o has been stagnant for years, is and this comes at the expense of everyone's welfare. i know it,

donald pay is whether in china, the us or europe. we all benefit from this rule based global trade winds and believe your budget of 800, once tariffs are set, this high, it becomes challenging, also exists and such as most really the this is the world's largest model railway, with new things, constantly being it got ads as the vision of recreating the monocle ground pre with real little formula, one cars are missing and i can find these a captain. so any take into these tiny cars, it's impossible. some 1200 trains zip through germany, europe and the world. all of this is down to a childhood dream of these twins. and they've just opened up a brand new area. the display has 16 and

a half kilometers. subtract the are also around 300000 figuring 5000 buildings. and some 500000. that'll be de lamps that lies up at nights, which comes every $15000000.00 to a wonderland does house in old warehouses of hendricks, poor and old again in 2001. since then, the founders have come from expense and unlocks the miniature was today. the attraction is around 5 times its original size. they had it for that exact measurements of the idea of march held to the impulse towards fleet, which we always had. we played so much as children, i'm seeing when i really hope that for many people we can, we will, we cannot instinct for playfulness. the principality of monica and frances provides amount ac pots admitted to, of on demand, as always,

in $187.00 scale. in addition to the, from the hub of the formula, one circuit this also todd at the city state. yeah, i'm, i'm good. we have a big team that loves to laugh, that's very creative as that goes to the world with their eyes wide open, or dest. federal fits with monica nickel menu to london, and has 14 different worlds and seen areas. one of the most popular is to stick to the city. that stuff is equally fascinating. configuring diplomats with 45 different airplanes land and take on this one country. in particular, that seems suspiciously popular. the diminutive switch century produces real triplets at the price of the escape promote any issue of $1.00. and there are hundreds of districts where the person who built something has an some we brought their own self expression into it. and i mean, i was looking recently and you can spot some heater in there and you shall find

whether it's 50 long stalking at home and deliberately kuta levels and vince wherever you look. we need to move on to this photo surprises. the, the more automotive tales, next time on or as the

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wasted life is this claudia and her daughter is starts june 22nd on d w. the . this is the w news, and these are the top stories ukrainian presidential demands. the landscape has greeted wall leaders of the summit in switzerland to discuss plans for peace and ukraine. russia wasn't invited on his main back of charlize, also absent. but german chancellor, all of schultz and you was wise, president come to have as are among the leaders for mold and 90 countries and international institutions attending as well as military save. 8 of its soldiers were killed during operations in russell and southern gauze on these. but some of the heaviest, also since the start of these rarely drawn defense of the 4.