story, i will detail it point to the find it here. repos every weekend on dw, 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 slice or cold. let's under the pressure on one front,

domestic manufacturers are engaged in brutal price wars and feature bedrooms. where on the other, they face global threats from steve terrace and the subsidy. you of us a are ready to slams of breaks 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 select with the vendors, these rates. but what's up all the cash with over 400. the electric vehicle companies have that and the staggering 90 percent has gone bank crossing just to 60 it's only giants like tesla, b, y b. and we also have managed to turn a profit in this cost. so much to this is about a little survival to see who is the strongest manufacture. sure,

some chinese companies have gained a cost advantage through cut throat competition in recent years. so only the strong survive in china. and we've done the other basically all easy production supply chains or under chinese control, given china and almost insurmountable advantage. that'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 red light. so into the i'm told stories of china electric vehicles in the district. busy in may 2024, while jermel was a steal deliberating visor on how to impose a special terrace. i'm trying these made electric vehicles. the united states took

the size of step, is decided to raise tigris. i'm trying these made electric vehicles from 25 percent to 100 percent. the folks look, i'm determined that the future of electric vehicles to be made in america for you. you'd work here in the 90s inside 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 gave me all with us bar. awesome. i was a bit surprised and i find it 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 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 be receiving audits. and so now,

so don't forget that justification for the huge tire of inc. chris, is that the chinese government has been heavily subsidizing its industries, particularly the steel sola 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 and by comes to send it well, a 100 percent terrace sounds huge, meaning the price of newton port, a chinese e v in the u. s. doubles for the chinese industry and global ege 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 giving. i'm time funding. she needs as an export and politic tacos, and in comparison, try like lots of over 5000000 vehicles globally in 2023. the economic impact of selling ciao cells and fewer eaves in the u. s. is minimal. type is another you can on this doesn't change much economics. it's more of a political statement. of course, there's also a domestic political dimension, especially in an election year. i was just and it's also a statement against the mass of the subsidies in certain industries in china. in recent years, it's and it's good. we 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 fair. access to each other's market also needs to be reciprocity. 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 she's emptying in may 2024. the traits defense instruments she referred to include imposing terrorist on chinese eves. similar to the us 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, a china exported 1500000 eaves of which 500000 went to the you and the only 12000 to the us as high as the will have the highest means to you has

a much larger influence on both the u. k. more responsibly and broadly discuss these issues with the badging of immense line. and it seems owens in china is likely greater than that of the us due to the minimal number of the v is exported to the us even knows that we need to edit cool. that's what it ought to not go to the like the us to use mean criticism. i'll try those in the street. 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, thoughts as our as to, to yours have pointed out in previous episodes,

europe and the u. s. have also provided substantial subsidies to industries like e b y even is just so much focused on criticizing the chinese government for its subsidies. to answer this, we need to understand the extent of page things, subsidies. these are the 2019 statistics for industrial with subsidies provided by the chinese government compared to t o e c d countries. trying those about street times that of the 2nd place, the united states. nearly 10 times that of japan as more than 15 times that of germany, a significant portion of chinese subsidies been to the sector china, a long shot pilot project to support the development of thieves. as early as 2009. though the subsidies have been decreasing in recent years, has made this

a national goal and pursued a good industrial policy to those people to take them all the time. his government's approach was to gradually incorrect enterprises to enter the new energy vehicle sector while supporting the development of production of bachelor with technology, just related to role materials. this gradually established a comprehensive tv industry chin in china, just being honest. mitch soto lumen on the, the new old months my of the big 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 wild chinese companies obviously benefited greatly, far, and companies like tesla also profited from this policy. what do you think of it too? that was done nutrition, postpone you company fights and ultimately failed due to a broken funding trans. never to less buy's and also received subsidies from the

chinese government. if you have time advise that, 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. you don't do competition still exist in boxes so that it's not all that develop. i'm not understanding the full all of the 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 on here are the top 10 companies that received these subsidies leaving the pack a, b, y, d and the gas coup 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. tina has shown china has had over capacity for decades due to it system type, which is not a free market economy, but state controlled. and then when this data prevents the government's decide to build a factory, it often isn't based on market criteria, but rather is simply execute consulting leading to this of incapacity or something on the shopping is a complicated, complex you to local governments across china's provinces have greatly contribution to the overall capacity port, or more than china. nearly every province boasts numerous and national level. t industrial parks or the button and zones. the perverse planning and the even

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

europe and the us national china indeed operates differently. as i mentioned earlier, every provincial government heavily subsidized as local manufacturing. i mean, in this context, they naturally heavily support local companies before tuesday, not tuesday, a high machine on the top must be the chinese government's actions have multi faceted impacts on the global economy. exactly. so for us mind, a 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 uh, very, very cheap, and then not easy to accomplish. see death in discussing the that's what students does. these are pro, comes constance degree, simmers worldwide benefit from this, such as with cheap silver sales and tv is the altos. what frustrates me about this

discussion. industrial policy is essential, and germany cannot afford a weakening auto industry ultimately. but what about the climate debate? it's been completely forgotten, and we've set the goal to become carbon neutral to the regarding global emissions in fine because we're at the last minute. let's group on it and we need to bring affordable eaves to the market as quickly as possible to help achieve this goal. to get all this and in my thinking, there are plenty of affordable use in the chinese market. was the rapid expansion of the continuous price cuts by companies like b, y, p, g, d, and sherry china. the market has become the most competitive in the world to come from. this is a battle of survival to see who is the strongest manufacturer. chinese companies have gained a cost advantage through cut throat competition in recent years. and so only the strongest, survive in china, snacks, new volume opens, you know,

in raising here. the chinese government has significantly refused subsidies for the industry that market forces besides the face of the company. among the b y b stands out as a clear, been having become the board largest e v maker by sales in 2023. what is the secret behind the success of trying these d d market leaders like d, 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 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. is that you want to use guns calling you to what's clear b, y d is number one, simply because they started focusing on this issue early on

a success factor. similar to the 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 chinese e. v. market. us please stand up and pay your respects to this one's bushes. players who didn't make it. the usage of some of the manufacturers that have recently been wiped out. except for b, y, d and lee, although, oh, you makers are losing money. we caught sold. this includes well regarded brands like neal exp paying i toe on show me. currently the r o a 100 new energy vehicle

companies in china, with almost every provisions 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 winds, even the central government says only about a 10th, as many are needed to get a selection process is happening now. and some provincial governments will continue to try to support their local manufacturers after that 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, something will disappear like my own company bite them did to them. the damage isn't done in buying cash. it and other industry insiders tell us that the many reasons so many companies file is that the grossly under estimated the cost of

common the factory. there is a consensus in the industry that we felt, at least to be mean daughter is thought up capital. it's not even for us talking about awaiting an ab brad. how many fuel surviving in the chinese small kitchen includes dry and it's like b, y, d, g, d chevy, which has achieved economies of scale as well as new payers, like neil explained on service. add to that the you and the the brands backed by traditional ultimate occurs. blackstone, full size on 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 support this. this should be on some time, it's hard to say who will survive some say only 5 to 10 companies or remain,

but i don't believe that china, it was just too large. and every provincial government has its own company. big, 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 the 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 come market will soon be electric. how much all that will be chinese. it will 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, 3 meetings in 2020. so we try not exported over 5 medium vehicles,

becoming the boards largest con, explore 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 europe ends having done so, but they probably will soon. that's the result. 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, you know, to statewide the market print a closer look at the top 10 destinations for chinese con, exports in 2000. and 23 suggests that the threats of significant type of increases in the us and europe won't stop. chinese cars from finding buyers are running toward the u. s. ranks for teens and germany ranks sixteens among the exports

destinations. in contrast, for germany try those car market remains crucial. java it'd be towards the extent of german manufacturer as 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 it comes to the door to the website. 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 a decent 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, gift china and almost insurmountable advantage. that's nearly impossible before the germans to catch up 2 directions. talk, no one does

a batch or has only just begun on the list like fedex. we believe that the us is currently protecting its domestic industry by copying china's own strategies. as it is what is on the old piano. lots. now i would say that europeans have no choice, but to follow the path already taken by the chinese ends. now the americans hold mountains means in the street. they must now engage in industrial policy. define key technology is more and see where they may already be vulnerable and go from best buy to one is it's by assume like a brutal survival battle. but the words twice organization has long set rules plus tax disputes. unfortunately, almost no major power is willing to follow them. now, the more to nothing. honor code 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 leave 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 comes to me being it is got ads as the vision of recreating the monocle ground pre with a real little formula one cars are missing and i can find these are, you can't. and so any tech into these tiny cars, it's impossible. some 1200 trains slipped 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 300065000 buildings. and some, 500000 that'll be di, lan said lies up at nights, which comes to every 15000000 to a wonderland house and old warehouses of hendrix, pull it all up again in 2001. since then, the founders have come from expensive and then launched in miniature was today, the attraction is around 5 times with the original size. the data 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 to me, and i really hope that for many people we can we a week and that instinct for playfulness, the principality of monica. and frances provides a,

now ac pots with minute 2 of on demand, as always, in 187 scale. in addition to the, from the hub of the formula, one circuit is also todd at the cityscape. 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 bundle, and has 14 different wilts and theme areas. one of the most popular is to stick to the cities. that stuff is equally fascinating. configured. people with 45 different airplanes land and take on this one country in particular that seems suspiciously popular that diminishes with century produces real triplets at the prism about escape. the issue of window line, there are hundreds of districts where the person who built something has an a some we brought the ruins self expression into it. i was looking recently and you can

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