the and the current 7th generation, the g 20 has sold well, bmw. you also plans to introducing the electric 3 series called the new class in 2025. so bmw is legendary, 3 series look set to live on for years to come. 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,

less under the pressure on one front. domestic manufacturers are engaged in brutal price worth of feature battles. where on the other, they face global threats from steve terrace and substitute you of us a are ready to slam the brakes on chinese tvs going global. the chinese domestic, the 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 vendors, these rates. but what up all the cash with over 400. the electric vehicle companies have bad and the staggering 90 percent have gone bank crossing, just the 60 it only giants like tesla b, y d. and we also have managed to turn a profit in this cap. so much to this is about a little survival to see who is the strongest menu after s. now,

chinese companies have gained a cost advantage through the cut throat competition in recent years. so only the strong survive in china. and we've done this is basically all easy production supply chains or 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 red light. so into the i'm told stories of china electric vehicles. busy in may 2024. well jerome was a steel 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 electric vehicles to be made in america by you and you'd work period. now do you then find them find out what is yes in 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 give me all with those bar. awesome, 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 use the non since, you know,

so don't so the, the justification for the huge tire of inc. chris is that the chinese government has been heavily subsidizing it's industries, 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 the imposter 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 cannot just 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 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 off on the line, made his statement after meeting shooting you may 2024 as 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 seems so it's 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, that's what it ought to not explore people. so the, like the us to use mean criticism, i'll try 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 provide its 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 paging subsidies. these are the 2019 statistics for industrial with subsidies provided by the chinese government. and 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 to those people. it took them all the time. his government's approach was to gradually enquire rich enterprises to enter the new energy vehicle sector, both supporting the development and production of battery technology as related result materials. this gradually established a comprehensive b, b industry. chad in china, just being honest. mitch soto lumen or the, the new old months my, of the big investment. of course, this was all backed by government subsidies and encouragement, 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 policy over to all that was done nutrition. postpone eating company fights and ultimately failed due to a broken funding trip. 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. that's not so it's not that the government unconditionally intervenes in the market. competition still exists 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 points 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 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 or to shop is leading to this of and capacity or something on the shopping is a complicated competency to local governments across china's provinces have greatly contribution to the overall capacity port. are you more than china? nearly every province, most 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 insure 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 the chinese 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. and those 2 point it to go. however, some of you with that chinese government subsidies differ significantly from those

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 and 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 for said it 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 succeed in this. these are prove to comes constance degree sam, or as worldwide benefit from this, such as with cheap solar cells and tv 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. to all this and in not the there are plenty of for what you're using this find these markets with the rapid expansion of continuous prize cups. companies like b, y, the ged on cherry, china. 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 moments, you know,

in raising here. the tiny government has significantly reduced subsidies for the industry. that market forces the site, the face of the company. a mom the b y b stands out as a clear, been 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 the white jesus conceiving 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 power. the b y b is done is called you know, what's clear, b y d is number one, simply because they started focusing on this issue early 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 chinese e. v. market. please stand up and pay your respects to this one's a business 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 we all told, oh, you makers are losing money on we caught sold. this includes well regarded 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 i'm the about attempt as many are needed to do a selection process is happening now. since 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 some will disappear like my own company bite them did to them. fine. i mean by crush it and other industry insiders tell us that the many reasons 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 $12000000000.00 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 explain on service. add to that the you and the brands, backed by traditional automakers. 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. i think 20 to 30 companies were over man. i saw the days and we'll continue the next 5 years, we'll see even more intense competition companies. but i believe any the salt on this do you mind? it will 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 $1000000.00 car exports. however, it only took a year to go from by median to, to medium 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. 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 is 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. chinese cars from finding buyers are wrong 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 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, would be a disaster for the german economy. and economy was the door to the bookshop trying 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 no one does

a batch or 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 it is what is on the o 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 in the street. they must now engage in industrial policy, define key technologies, mind see where they may already be vulnerable and go from excess fund to one is it's by assume like a brutal survival battle. but the words choice organization has long sets rules for such disputes. unfortunately, almost no major power is willing to follow them. now, the or the more to nothing article, mostly lateral coordination in world trade has become very, very fragile ones. those are me if i may say so who took the w t o has been

stagnant for years, and this comes at the expense of everyone's welfare. i know it, donald clients, whether in china to us or europe. we all benefit from this rule based global trade . one is in one's in believe your budget and 800. once tariffs are set, this high, it becomes challenging, us exists and it says as much really the this is the world's largest model railway with new things comes to me being it guy has, is the vision of recreating the monocle ground pre with a real little formula one cars are missing an order again from these are you can't . and so any tank into these tiny cars, it's impossible. some 1200 trains zip through germany, europe. and the world 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 de lamps that lies up at nights, which comes every 15000000 to a wonderland house in old warehouses of hendrix, pull it all up again in 2001. since then, the founders have come some expense and then launched the 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 francis provides. i'm now ac parts 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 part of the city. okay. yeah, i'm, i'm good. we have a big team that loves to laugh, that's very creative. if it 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 kind of thing and deal with 45 different airplanes land and take on this one country in particular, that seems suspiciously popular. the dominions just switch century produces real chocolate at the price of about escape through any issue of window line. there are hundreds of districts where the person who built something has an a some we brought their own self expression into it. i was looking recently and you can spot some

heater in there and you shall find whether it's 50 long stalking at home in billy billy kuta levels in venice. wherever you look, we need to move on to this photo surprises or the more automotive tales. next time on or as the

man slides, hailstones, switzerland isn't being stats scientists, parties are designing sophisticated early warning system protective measures and trails or imagine c should other countries follow their lead. tomorrow today. in 30 minutes on the w

cover the new life stories, the exciting adventures into the a, a square, rational light, the documentary, the 75 minutes. on d w. the get ready for an exciting toyota for look, surprised. hi, irish. and i'm ready to dive into the hands of human to do you have you have a one the need before you go to the spot and unexpected side supplies. what

finally did i right, just do it and i'm hosting dw new pod costs down straight from mount pleasant hill . actually of i'll know join us as we travel around your tracing the history of every day of this and that bumpy ride around the world. and of course, we're taking the juicy of stories with a little mistrial drama along the way. but no need to pack your bags. just sit subscriber id, listen to part fast and will take you along to the right side. the,

[000:00:00;00] the you're watching the news coming to live from berlin. the 1st victory at euro 2024 goes to the house, the germany put on a dazzling display to cruise past scotland at 51 in the opening match. also coming off on our show, the g 7 summit takes a rushes war on ukraine. it concludes with the group, vowing to put more pressure on brushes back 1st. next world leaders will add to

switzerland for a summit on peace in ukraine. 210 south africa opens