facing the chinese electric vehicle industry is more on d, w dot com. of course you can follow us to all social media content on youtube as the w use on jared. great invalid, and thank you for watching. the name is the polls back? said loud. thank you so much for joining in. welcome to don't hold bad. a lot of people do that. it's all about saying it loud match. would it be nosy bay? like good, everyone to king. you're healthy award winning called called the called back. the

china is the electric vehicle industry, so i thought teaching points, well it flies or correlates under the pressure on one front. domestic manufacturers are engaged in brutal price worth of feature bathrooms. where on the other, they face global threats from steve terrace and the subsidy. you as usa, 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, d and b all adults has been able to make a profit. we have selected with the vendors these rates, but what's up all the cash with over 400. the electric vehicle companies have done that and the staggering 90 percent has gone fund crossing just to 60 it's only giants like tesla, b, y, d. and we also have managed to turn a profit in this cuts so much to this as

a matter of survival and to see who is the strongest manufacturer. chinese companies have gained a cost advantage through cut throat competition in recent years. so only the strong survive in china we've done this is 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 you know, 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 dw rep? let's solve into the i'm told stories of china electric vehicles. busy in may 2024. my girl was still deliberating by the ontology impulse special terrace

. i'm trying these made electric vehicles. the united states took the size of step . it 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, 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 some good far beyond what might be expected. would you say it lets me see cartoon network get me all with us for 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 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 use eating 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 it's 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 it. 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 and you'd be export isn't giving out. i'm tired of funding. she needs as an export and politic tonsils and comparisons, try like sports. it's over 5000000 vehicles globally in 2023. the economic impact of selling charles sells and fewer eaves in the u. s. is minimal. type is another. you cannot just 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 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 made some 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 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 to defense instruments. if this is necessary, european commission president was that i found the line made his statement after meeting shooting in may 2024. the traits defense instruments she referred to include imposing tyrants 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 and 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 discuss 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 the v is exported to the us in the notes that we need to edit cool pot sorted on to not to explore people. so the, like the us, the us main criticism of tying those e v industry, revolves around subsidies, particularly focusing on over capacity is the core 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 us have also provide its substantial subsidies to industries like a b, y. even if the so much focus on criticizing the chinese government for each subsidies to answer this, we need to understand the extent of paging subsidies a diesel as of 2019 statistics for industrial subsidies provided by the chinese government. compared to p o e c d countries. trying us about 3 times that of the 2nd place, the united states, nearly 10 times that of japan. and more that 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. china has made this a national goal and pursued a good industrial policy to those people that took them all the time. his government's approach was to gradually encourage enterprises to enter the new energy vehicle sector about supporting the development and production of that. so we've taken the energy just related volt materials. this gradually established a comprehensive e b industry chance in china. just being honest, not please mich soto bowman or the, the new, or what 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 as good industrial policy. and while chinese companies obviously benefited greatly foreign companies, like tesla also profited from this policy policy that was done yet to issue

postpone even company fights and ultimately failed due to a broken funding trend never to less buy's and also received subsidies from the chinese government. the kind of rise, we also had some government capital, but it didn't help us at that stage. so it's not that the government unconditionally intervenes in the market. competition still exists in boxes. so no, it's not with develop. i'm not understanding the full scope 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 on here are the top 10 companies that received these subsidies leaving 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. tina have shown china has had over capacity for decades due to it system type, which is not a free market economy, but state controlled. and when this data prevents the government's decide to build a factory, it often isn't based on market criteria. but rather simply executing shop is leading to this of and capacity or something on the shopping is a complicated complex. the company still surviving in the chinese small kitchen includes the trying this like b, y, d, g d, i'm chevy,

which has achieved economies of scale as well as new payers. like neil explain on service, add to that the you and the brands, backed by traditional ultimate cuz like don't phone side 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 so far. so if half of the board com market will soon be electric. how much all that will be chinese. it'll 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 exported 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. that's 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 car as globally, you know, to find the market print, a closer look at the top 10 destinations for trying these cars exports in 2023 suggests that the threats of significance, the tire of increases in the us and europe won't stop trying. these cars from finding buyers are wrong toward the u. s. ranks for teens and germany ranks sixteen's among the export destinations. in contrast, for germany try those car markets remains crucial. the detroit,

the ex dental german manufacturer, has 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 was 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 george and no one. what do you think? on what basis philadelphia which are global trades be built?

well, try these eves, dominate the global market one day. here. i dw with them to provide you with unbiased information for, for you months. so share your thoughts in the comments below the. so this is the, the news advocates coming up on the program, kenya is protest. as far as presidents were, you and we were to, into a major, climbed down to miles to pressure from the streets and withdraws a controversial bill. the proposed punitive taxes on the nation, but with many dead will this be enough to appease the young disillusion protest as i couldn't see. and therefore i would not sign that 2024.9 speed and each and subsequently be withdrawn. also coming up on the.