Dejan Corovic
As above, so bellow
Agreed,A lot of the threat to the Western car industry from cheap Chinese EVs is due to self-created pressure to adopt EVs in the first place, by fining western companies for producing ICE vehicles.
But point here is that Chinese cars are not just cheap, but of very high quality. Actually of such a high quality for a price that Western car makers can't compete. And that's their own conclusion.
We had seen same process before. In 19th centrury German, and indeed American, products were "cheap" then they became synonim for quality. Then Japanese products were "cheap" and became high quality. Now Chinese are reaching that new level. Regan's Fed chairman Valker imposed Plazza accord on Japanese and curbed Japanese economy, but the same can't be done with Chinese.
What i think was idiotic happened 10 - 20 years ago when Western politicians started pumping capital in China to aid its growth. That was a huge mistake and basically Chine become threat by receiving money from West. West should had invested that money into it's own nations, not int China. Now its going to be really hard to reverse this trend.