Cars and solar panels get hit the hardest with tariffs and restrictions.
Solar panels: [1]
Cars: [2]
More devices are being hit by US digital sovereignty rules. Most US talk about this revolves around the EU not allowing processing of data about EU citizens outside the EU.
It's now a big issue for US customers, too.
The US is applying it to many classes of devices. For cars, there's the “Connected Vehicles Rule”.[3] Cars can't phone home to China or some other countries. New models of DJI drones are not allowed to be imported into the US, as mentioned in the article.[4]
WiFi-equipped routers have even tighter restrictions.[5]
Will this be extended to phones? "Smart" TVs? That's going to be interesting.
US bans are based on the incorrect idea that we have control over AI. But the ban only reduces the most advanced model available from US companies. Models from other countries continue development. It's as if the US decided to hit pause on competing on AI and we're just going to let someone else win it.
The US could be using these models to fix bugs and defend out systems.. but instead, we're all waiting for open source models to exceed the best unbanned model available in the US(0), and then we can all watch while attackers -- who can use any available open source model, including banned models -- to attack every US company on the internet.
US bans are a choice: a choice to lose to China; a choice to leave US companies defenseless; a choice to reduce competitiveness of the US in software. Every time a US person or company watches someone use models they are prohibited from using to achieve something US models can't, they create opposition to this ban. I can't imagine this is a sustainable policy.
0. Currently open source models are included in consideration for the "best model in the US" -- but if they're willing to ban the best from Anthropic/OpenAI, I wouldn't necessarily assume that all open source models will always be available within the US.
I don't understand the surprise in this article. This particular story is absolutely nothing new—the Germans and Japanese did it first to the US car market, which is inefficient, stuck in a bygone era, and propped up by government protectionism. Nearly all* American cars have been backwards in all metrics since about the 1970s.
In general, if you wanted...
Reliability: Japanese.
Value: Korean, French, Japanese.
Performance: German, Italian, maybe every now and then British.
Luxury: German, Italian, British, and depending on marque, Japanese.
And today, Chinese marques are eating everyone's lunch on every metric in the EV sector because they have seen how everyone else builds cars, lorries, and buses for a while, learnt how to do it themselves, got rid of the ICE, popped a battery in them, and have been massively undercutting the market for a while now.
* I should qualify this properly to pre-emptively stave off the ooh-rah crowd: every now and then there has been a decent A-to-B car out of the US, like the Fiesta. Additionally there are models sold purely in Europe like the Ford Mondeo.
The EV-only companies build much better EVs than companies that also build ICE cars. It took Tesla to get EVs going in the US.
It will be interesting to see if Slate's little electric pickup truck really ships at the promised price point. They're advertising and taking pre-orders.
Delivery dates are vague. "Q4 2026" probably means "a few demo units". Maybe in 2027.
Incidentally, the Donut Labs solid-state battery appears to have been a scam.[1]
They were supposed to ship electric motorcycles with it in Q1 2026, and we're almost into Q3.
"$25 million raised from 1,300+ small investors", says Electrek. Their "solid state" battery seems to be an ordinary pouch type lithium-ion battery, no better than a good lithium-ion battery.
CATL's CEO says that they're at level 4 (Component/breadboard validation in lab) of 9 in terms of technology maturity. That's worse than expected at this point. There are lots of announcements of "breakthroughs", and at least two test vehicles on the road (Mercedes and Ducati), but nobody has volume manufacturing working yet.
> The authors conclude that non-tariff barriers were a primary instrument used by China in the U.S.-China trade war, with implications for China’s trade conflicts with other countries.
If we ignore the cultural issues with Americans where some places buying an EV is considered "gay" (because that is inheritently negative to them) then we can easily point to the hostile lobbying tactics and government capitulation via bought congressmen. Go look at the historical hostilities Tesla faced when first trying to take off.
If I still lived in the US, I'd be hesitant to buy an EV because the infrastructure state to state to support charging wasn't great when I was last there. In Europe, you can road trip with your EV no problem.
Let's not entirely blame consumers for not being incentivised enough. Let's face it the US has been actively against EVs. You mention subsidies, haven't those even seen regressions in EV and solar panel subsidies? It's ridiculous.
New car sales in Europe in 2026 are approaching 50% EV with essentially none of the above. Europe has had generous EV subsidies in the past, but in 2026 those are mostly (but not completely) gone.
> Americans however like their gas guzzling F150s.
Pickup trucks have always made up between 10% and 20% of vehicles on the road in America; it's the SUV that has picked up from next to nothing in 1980 to almost half of all new vehicles now, while the sedan has plunged from 80% to about 25% of new vehicles today.
A big part of that transition to larger SUVs (which are not F150s) was the CAFE (Corporate Average Fuel Economy) Standards, which sought to make cars more fuel efficient. They regulated based on the size of the vehicle, so larger vehicles (including both the SUV and the F150) became cheaper to manufacture, while smaller cars were squeezed out of the market as meeting CAFE became too expensive. Larger cars also perform better on safety tests and have an easier time passing onerous safety regulations. Had environmental and safety regulations been handled differently, or if there weren't any, Americans might well be driving more fuel-efficient smaller coupes and sedans.
That said, the Chevy Bolt and Mustang Mach-E are, in fact, being manufactured—the Bolt was recently brought back, and the Mustang Mach-E was never discontinued. The Ford F150 Lightning has been discontinued. Tesla outsells all of them by far.
The average price of electricity in Europe is 29 cents. The average price in the US is 17 cents. Both have a very wide variance. I'm not sure if there's anywhere in Europe that pay more than PG&E customers in the US...
AFAICT, that increases sales. "I better buy it now, it's going to be banned soon". Just ask the American gun manufacturers. They love announcements of bans because it provides a huge immediate boost in sales. And then in the end the ban ends up being watered down/removed, just like the European bans of combustion vehicles have been.
4) People in China want to save money on gas, while America prefers to bitch about gas prices, while doing nothing to switch away from gas-guzzling ICE land yachts.
You've cracked the code on this one, it's not the fact that someone realized they could use labor arbitrage 50 years ago to get rich while selling the American people down the river. Treason in the name of profit.
> Out govt system literally doesnt have the political will to do these brutal but effective policy changes
I agree our country needs to really have some sort of revolution for the good of all humanity to force this change and overcome the entrenched interests of these greedy corporations.
Maybe we come up with a plan to drastically solve our energy and industry problems, overcome all obstacles and bring about a wonderful utopia, I bet we could do it inside of 5 years if we just gave enough power to the right people.
We could call it a 5 year plan, and listen we need broad sweeping powers to do it, otherwise malicious actors would try and subvert it. Some people wouldn't like it but that's because they aren't brave enough to do what needs to be done for the good of the workers and the proletariat. Rise up comrade let us implement the glorious 5 year plan that will free us forever from the capitalist shackles.
In your sarcasm, you seem unaware that China -- the country the OP uses as a comparison -- runs successful X-year plans under its hybrid capitalist model.
I've been thinking for a while that some part of the ebullience towards AI among the American decision-maker class is that it is a good way to stick our heads in the sand and pretend like super-intelligent AI will make up for not being able to build competitive cars and drones. It has the feeling of an easy-to-digest explanation but I'm worried that it's probably wrong.
The WTO was a mistake. We should return to a GATT style trade policy where free trade is allowed (mostly) between open democratic nations with aligned security interests and goals.
> China increasingly resembles the competitive capitalist system Americans were taught to admire, while the US appears to embrace the controlled “kickback” economy we were told to fear.
I've said this before and I will say it again. I don't see any problem in allowing Chinese cars in the US if China manufactures them here under a 49:51 joint venture with an American company.
Also, I'm not sure how long CCP will keep on bankrolling their car companies. They are now competing with each other pushing the profits lower. Over the last year BYD stock is down 40%. Take a look at their auto manufacturers index. It peaked in November 2021 losing about 47% since then (https://www.solactive.com/index/DE000SLA0CA9/)
To play devil's advocate, there is some logic to banning Chinese cars, which is that their firmware risks sending telemetry to China, also disabling/malfunctioning the car if China were to have a military engagement with the US. I suggest a middle road which is that the entire telemetry surface and firmware updates must be domestically managed, with no room for a closed-source foreign entity to manipulate it.
An EV really shouldn't be needing to send telemetry at all. It's not a self-driving car. It would be better if the user could reliably and permanently disable it even when one's phone is connected.
The vehicle would also have to be tested to ensure that no covert or p2p radio signals can be sent to it that can signal it to shutdown or malfunction. This is very difficult to assert. There would have to exist domestic personnel who take responsibility for it.
Frankly though, Israel scares me more than China, as Israel is known to actually add remotely detonated explosives to exported consumer products.
At this point, for me it's equally scary that the US government can do that. If I can't control the firmware then I don't really care for which government my car is spying for. It's all bad
If I was American, I'd be more worried about the American government & corporations spying on me because they're the one with the power over me. If I was Chinese, I'd be more worried about the Chinese government spying on me.
I'm sure China is going to be yearning for those sweet traffic pattern data during a war. They'll know which Walmarts they need to bomb first.
It's not like there are satellites that can get high-res pictures of most of the US every few hours. Or millions of phones running all kinds of software.
Even the US-made cars have dozens of computers that run very crude C-based code, full of bugs and overflows. Security was never a priority for this code. There are so many routes of ingress that it's not even funny.
> I suggest a middle road which is that the entire telemetry surface and firmware updates must be domestically managed, with no room for a closed-source foreign entity to manipulate it.
Seems fair? What about manufacturing as well, I'm sure the US can hold these Chinese car design and manufacturing techniques with the same copyright and IP protection that China gives the US's stuff.
Software would be equated to nukes if companies and people put more time and energy into the security aspects. They cut costs for a long time by not spending on certain aspects. The does not make AI a nuclear bomb equivalent in my mind. Banning the best models makes that harder to rectify. State level hackers will have access to this technology regardless.
Unlike nukes, AI is being used in the cyber warfare realm daily, as both an offensive and defensive tool.
Umm not when the adversary is using heavy government subsidies to undercut prices and essentially take over the industry. Look at what’s happening to the European car industry, with more job losses planned by VW just this week
The irony is that China is actually good at effectively using this and getting more out of reach unit of money put in. Perhaps that is why we feel the need to label them differently, though I would also venture it is more a cultural thing. Americans tend to view subsidies as handouts and industrial policy in the Puritan values lens.
The Europeans did a very good survey of Chinese subsidies when determining what tariff to impose on Chinese cars. When data was ambiguous, they chose the higher number, and/or forced the Chinese manufacturers to refute it with hard data. They settled on 17-34%.
Cars and solar panels get hit the hardest with tariffs and restrictions.
Solar panels: [1]
Cars: [2]
More devices are being hit by US digital sovereignty rules. Most US talk about this revolves around the EU not allowing processing of data about EU citizens outside the EU. It's now a big issue for US customers, too. The US is applying it to many classes of devices. For cars, there's the “Connected Vehicles Rule”.[3] Cars can't phone home to China or some other countries. New models of DJI drones are not allowed to be imported into the US, as mentioned in the article.[4] WiFi-equipped routers have even tighter restrictions.[5]
Will this be extended to phones? "Smart" TVs? That's going to be interesting.
[1] https://www.peacocktariffconsulting.com/solar-panel-imports/
[2] https://motorwatt.com/ev-blog/howtos/importing-a-chinese-ele...
[3] https://www.hoganlovells.com/en/publications/us-bis-final-ru...
[4] https://uavcoach.com/dji-ban/
[5] https://www.fcc.gov/faqs-recent-updates-fcc-covered-list-reg...
US bans are based on the incorrect idea that we have control over AI. But the ban only reduces the most advanced model available from US companies. Models from other countries continue development. It's as if the US decided to hit pause on competing on AI and we're just going to let someone else win it.
The US could be using these models to fix bugs and defend out systems.. but instead, we're all waiting for open source models to exceed the best unbanned model available in the US(0), and then we can all watch while attackers -- who can use any available open source model, including banned models -- to attack every US company on the internet.
US bans are a choice: a choice to lose to China; a choice to leave US companies defenseless; a choice to reduce competitiveness of the US in software. Every time a US person or company watches someone use models they are prohibited from using to achieve something US models can't, they create opposition to this ban. I can't imagine this is a sustainable policy.
0. Currently open source models are included in consideration for the "best model in the US" -- but if they're willing to ban the best from Anthropic/OpenAI, I wouldn't necessarily assume that all open source models will always be available within the US.
I don't understand the surprise in this article. This particular story is absolutely nothing new—the Germans and Japanese did it first to the US car market, which is inefficient, stuck in a bygone era, and propped up by government protectionism. Nearly all* American cars have been backwards in all metrics since about the 1970s.
In general, if you wanted...
Reliability: Japanese. Value: Korean, French, Japanese. Performance: German, Italian, maybe every now and then British. Luxury: German, Italian, British, and depending on marque, Japanese.
And today, Chinese marques are eating everyone's lunch on every metric in the EV sector because they have seen how everyone else builds cars, lorries, and buses for a while, learnt how to do it themselves, got rid of the ICE, popped a battery in them, and have been massively undercutting the market for a while now.
* I should qualify this properly to pre-emptively stave off the ooh-rah crowd: every now and then there has been a decent A-to-B car out of the US, like the Fiesta. Additionally there are models sold purely in Europe like the Ford Mondeo.
The EV-only companies build much better EVs than companies that also build ICE cars. It took Tesla to get EVs going in the US.
It will be interesting to see if Slate's little electric pickup truck really ships at the promised price point. They're advertising and taking pre-orders. Delivery dates are vague. "Q4 2026" probably means "a few demo units". Maybe in 2027.
Incidentally, the Donut Labs solid-state battery appears to have been a scam.[1] They were supposed to ship electric motorcycles with it in Q1 2026, and we're almost into Q3. "$25 million raised from 1,300+ small investors", says Electrek. Their "solid state" battery seems to be an ordinary pouch type lithium-ion battery, no better than a good lithium-ion battery.
CATL's CEO says that they're at level 4 (Component/breadboard validation in lab) of 9 in terms of technology maturity. That's worse than expected at this point. There are lots of announcements of "breakthroughs", and at least two test vehicles on the road (Mercedes and Ducati), but nobody has volume manufacturing working yet.
[1] https://electrek.co/2026/06/08/donut-lab-solid-state-battery...
[2] https://electrek.co/2026/06/25/catl-solid-state-battery-leve...
> And today, Chinese marques are eating everyone's lunch on every metric in the EV sector
Yep and that includes human rights violations
https://www.cbc.ca/news/politics/byd-hungary-china-labour-wa...
https://theworld.org/stories/2026/06/05/hungary-cracks-down-...
https://www.theguardian.com/global-development/2026/may/12/c...
https://www.amnesty.org/en/latest/news/2024/10/human-rights-...
BYD is literally the lowest ranked.
US only loves free market if they're the winners.
Which free-market-loving country doesn't?
So does China. E.g.,
China goes beyond protectionism and even threatens other countries from doing their own strategy.
https://economictimes.indiatimes.com/industry/renewables/chi...
https://sccei.fsi.stanford.edu/china-briefs/chinas-use-unoff...
> The authors conclude that non-tariff barriers were a primary instrument used by China in the U.S.-China trade war, with implications for China’s trade conflicts with other countries.
https://en.wikipedia.org/wiki/List_of_websites_blocked_in_ma...
So does the EU
https://ahdb.org.uk/europe-market-access-and-barriers-to-tra...
Interestingly, champions of free trade come out only when the US puts in any place the tiniest of restrictions.
>Americans watch the rest of the world getting better, cheaper, ...
If we wanted cheap cars, there needs to be demand to justify building giga factories of EVs.
There just wasnt sufficient consumer demand to justify the giga factory investments
China CAN generate demand for EVs because they have the political ability to
1) force gas restricted cars to only drive on certain days of the week
2) create a brutal lottery to get a license plate to legally drive a gas car
3) provide a bunch of subsidies
The US has only done option 3.
Out govt system literally doesnt have the political will to do these brutal but effective policy changes
If we ignore the cultural issues with Americans where some places buying an EV is considered "gay" (because that is inheritently negative to them) then we can easily point to the hostile lobbying tactics and government capitulation via bought congressmen. Go look at the historical hostilities Tesla faced when first trying to take off.
If I still lived in the US, I'd be hesitant to buy an EV because the infrastructure state to state to support charging wasn't great when I was last there. In Europe, you can road trip with your EV no problem.
Let's not entirely blame consumers for not being incentivised enough. Let's face it the US has been actively against EVs. You mention subsidies, haven't those even seen regressions in EV and solar panel subsidies? It's ridiculous.
"Americans where some places buying an EV is considered "gay""
They would jump on EVs in heartbeat if Trump told them to.
New car sales in Europe in 2026 are approaching 50% EV with essentially none of the above. Europe has had generous EV subsidies in the past, but in 2026 those are mostly (but not completely) gone.
Youre right, i forgot to add
4) europeans are environemtally conscious
Americans however like their gas guzzling F150s.
The reason I did the original comment was I know for a time the major car companies did a huge push into EVs.
Like the ford 150 lightning, chevy bolt and mustang mach E. But they stopped manufacturing them due to weakened sales and profitability.
Its a vicious feedback loop of consumer adoption, high car prices, and capital investment which makes us feel stuck
*edit this is based on what I heard from a GM exec during a lecture visit while at UofM
> Americans however like their gas guzzling F150s.
Pickup trucks have always made up between 10% and 20% of vehicles on the road in America; it's the SUV that has picked up from next to nothing in 1980 to almost half of all new vehicles now, while the sedan has plunged from 80% to about 25% of new vehicles today.
A big part of that transition to larger SUVs (which are not F150s) was the CAFE (Corporate Average Fuel Economy) Standards, which sought to make cars more fuel efficient. They regulated based on the size of the vehicle, so larger vehicles (including both the SUV and the F150) became cheaper to manufacture, while smaller cars were squeezed out of the market as meeting CAFE became too expensive. Larger cars also perform better on safety tests and have an easier time passing onerous safety regulations. Had environmental and safety regulations been handled differently, or if there weren't any, Americans might well be driving more fuel-efficient smaller coupes and sedans.
That said, the Chevy Bolt and Mustang Mach-E are, in fact, being manufactured—the Bolt was recently brought back, and the Mustang Mach-E was never discontinued. The Ford F150 Lightning has been discontinued. Tesla outsells all of them by far.
I don't think the jump in EV sales in Europe are primarily driven by environment consciousness.
The jump in EV sales this year are primarily driven by seeing what a psycho in the US whitehouse can immediately do to gasoline prices.
Gasoline only comes from one source., and is largely delivered around the world by shipping.
Electricity is able to be generated by many means, and is available everywhere.
I know several people in modest suburban homes, who generate all of their own electricity, including driving two EVs.
The supply chain can be very short.
There is no other form of energy that can deliver the individual and national energy independence that can be delivered by electricity.
Gasoline and petroleum in general can never, ever, ever, deliver this degree of autonomy.
The major US car companies pulled back some on EVs mostly because of hostility toward EVs from the Trump administration.
4) add taxes to effectively double price of gasoline
The price of electricity in Europe is also approximately double that of the US.
This is not true, it varies widely between countries, just as it varies between states in the US.
The average price of electricity in Europe is 29 cents. The average price in the US is 17 cents. Both have a very wide variance. I'm not sure if there's anywhere in Europe that pay more than PG&E customers in the US...
Hum... Announcing you will completely outlaw combustion cars soon is missing from the GP's options.
AFAICT, that increases sales. "I better buy it now, it's going to be banned soon". Just ask the American gun manufacturers. They love announcements of bans because it provides a huge immediate boost in sales. And then in the end the ban ends up being watered down/removed, just like the European bans of combustion vehicles have been.
They don't have the political will because doing (1) and (2) would result in the removal of whatever politicians approved it.
4) People in China want to save money on gas, while America prefers to bitch about gas prices, while doing nothing to switch away from gas-guzzling ICE land yachts.
You've cracked the code on this one, it's not the fact that someone realized they could use labor arbitrage 50 years ago to get rich while selling the American people down the river. Treason in the name of profit.
Labor arbitrage as treason is a very interesting idea. It's a major reason why China is as developed as it is now.
*after further research it seems option 1 is really limited to tier 1 and tier 2 cities(1/3) of the population
> Out govt system literally doesnt have the political will to do these brutal but effective policy changes
I agree our country needs to really have some sort of revolution for the good of all humanity to force this change and overcome the entrenched interests of these greedy corporations.
Maybe we come up with a plan to drastically solve our energy and industry problems, overcome all obstacles and bring about a wonderful utopia, I bet we could do it inside of 5 years if we just gave enough power to the right people.
We could call it a 5 year plan, and listen we need broad sweeping powers to do it, otherwise malicious actors would try and subvert it. Some people wouldn't like it but that's because they aren't brave enough to do what needs to be done for the good of the workers and the proletariat. Rise up comrade let us implement the glorious 5 year plan that will free us forever from the capitalist shackles.
In your sarcasm, you seem unaware that China -- the country the OP uses as a comparison -- runs successful X-year plans under its hybrid capitalist model.
I've been thinking for a while that some part of the ebullience towards AI among the American decision-maker class is that it is a good way to stick our heads in the sand and pretend like super-intelligent AI will make up for not being able to build competitive cars and drones. It has the feeling of an easy-to-digest explanation but I'm worried that it's probably wrong.
I’d wager you’re more right than wrong.
It's far from ebullience. It's the fear of a younger and more competent workforce.
The WTO was a mistake. We should return to a GATT style trade policy where free trade is allowed (mostly) between open democratic nations with aligned security interests and goals.
Journalists used to decry the use of LLMs. Now they use it freely to write their own articles.
> China increasingly resembles the competitive capitalist system Americans were taught to admire, while the US appears to embrace the controlled “kickback” economy we were told to fear.
Spot on
I've said this before and I will say it again. I don't see any problem in allowing Chinese cars in the US if China manufactures them here under a 49:51 joint venture with an American company.
Also, I'm not sure how long CCP will keep on bankrolling their car companies. They are now competing with each other pushing the profits lower. Over the last year BYD stock is down 40%. Take a look at their auto manufacturers index. It peaked in November 2021 losing about 47% since then (https://www.solactive.com/index/DE000SLA0CA9/)
The administration disagrees with you, having just banned the made in South Carolina PoleStar vehicles
Opening the way for foreign competition.
Still the best place for Clean, Beautiful, Coal. Can't argue with that.
To play devil's advocate, there is some logic to banning Chinese cars, which is that their firmware risks sending telemetry to China, also disabling/malfunctioning the car if China were to have a military engagement with the US. I suggest a middle road which is that the entire telemetry surface and firmware updates must be domestically managed, with no room for a closed-source foreign entity to manipulate it.
An EV really shouldn't be needing to send telemetry at all. It's not a self-driving car. It would be better if the user could reliably and permanently disable it even when one's phone is connected.
The vehicle would also have to be tested to ensure that no covert or p2p radio signals can be sent to it that can signal it to shutdown or malfunction. This is very difficult to assert. There would have to exist domestic personnel who take responsibility for it.
Frankly though, Israel scares me more than China, as Israel is known to actually add remotely detonated explosives to exported consumer products.
At this point, for me it's equally scary that the US government can do that. If I can't control the firmware then I don't really care for which government my car is spying for. It's all bad
If I was American, I'd be more worried about the American government & corporations spying on me because they're the one with the power over me. If I was Chinese, I'd be more worried about the Chinese government spying on me.
I'm sure China is going to be yearning for those sweet traffic pattern data during a war. They'll know which Walmarts they need to bomb first.
It's not like there are satellites that can get high-res pictures of most of the US every few hours. Or millions of phones running all kinds of software.
Even the US-made cars have dozens of computers that run very crude C-based code, full of bugs and overflows. Security was never a priority for this code. There are so many routes of ingress that it's not even funny.
> I suggest a middle road which is that the entire telemetry surface and firmware updates must be domestically managed, with no room for a closed-source foreign entity to manipulate it.
Seems fair? What about manufacturing as well, I'm sure the US can hold these Chinese car design and manufacturing techniques with the same copyright and IP protection that China gives the US's stuff.
Then make a regulation that every firmware that runs on car needs to be open sourced.
Banning isn't a good solution, we should create healthy competition.
It’s been like this for a while. Take a technology, call it a weapon and control it. Same playbook.
denying my godgiven right to recreational nukes is blatant infringement on my rights!
Software would be equated to nukes if companies and people put more time and energy into the security aspects. They cut costs for a long time by not spending on certain aspects. The does not make AI a nuclear bomb equivalent in my mind. Banning the best models makes that harder to rectify. State level hackers will have access to this technology regardless.
Unlike nukes, AI is being used in the cyber warfare realm daily, as both an offensive and defensive tool.
Umm not when the adversary is using heavy government subsidies to undercut prices and essentially take over the industry. Look at what’s happening to the European car industry, with more job losses planned by VW just this week
This argument doesn't stand up to much scrutiny.
- The Polestar vehicles most recently banned are made in Charleston SC
- Fossil fuel industries in the US receive huge subsidies
- Non-Chinese brands (Hyundai/ Kia) produce models with similar pricing
This is a tired argument. When China does it it’s subsidies, when other countries do it it’s called industrial policy.
The irony is that China is actually good at effectively using this and getting more out of reach unit of money put in. Perhaps that is why we feel the need to label them differently, though I would also venture it is more a cultural thing. Americans tend to view subsidies as handouts and industrial policy in the Puritan values lens.
Effective Chinese subsidy per vehicle is lower than the $7000 per vehicle the US had in place.
Is that even knowable? The Chinese economy is very opaque.
The Europeans did a very good survey of Chinese subsidies when determining what tariff to impose on Chinese cars. When data was ambiguous, they chose the higher number, and/or forced the Chinese manufacturers to refute it with hard data. They settled on 17-34%.
Isn't that the market strategy of silicon valley companies? Sell at a loss, capture the whole market and then inflate prices
Why does it matter whether the subsidies come from a government, from venture capitalists, or from private equity?