When we say Chinese government subsides, we are not talking about tax reductions or interest free business loans, we are talking about the Chinese government itself operating the business and selling the products at a steep loss in order to undercut and wipe out incumbent global competition in the world market so that China becomes the primary worldwide supplier of those particular goods.
This has already happened to consumer electronics, power tools, manufacturing equipment, solar panels, and batteries.
The strategy is especially effective on products with a high startup cost in markets that have to deal with high amounts of regulation and labor unions because being government-owned means you get to skip all that. There's no reason to expect that cars won't be next.
> When we say Chinese government subsides, we are not talking about tax reductions or interest free business loans, we are talking about the Chinese government itself operating the business and selling the products at a steep loss in order to undercut and wipe out incumbent global competition in the world market so that China becomes the primary worldwide supplier of those particular goods.
Where did you get that information? There were previous investigations by the EU Commission about Chinese government subsides, and "tax reductions or interest-free business loans" were the main allegations.
We've done similar things when it comes to military and military-adjacent technology.
If a government believes in the potential and promise of a given technology and wants to dominate in that sector, it should be allowed to. That's the premise of worldwide capitalism and markets. Capital is allocated to where the owners of said capital wish to allocate it to, and that's the free market at work.
This has already happened to consumer electronics, power tools, manufacturing equipment, solar panels, and batteries.
The strategy is especially effective on products with a high startup cost in markets that have to deal with high amounts of regulation and labor unions because being government-owned means you get to skip all that. There's no reason to expect that cars won't be next.