this post was submitted on 26 Aug 2024
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That'll help prices remain competitive....Right?
It will help keep prices competitive in the long term. Chinese EV makers aren't competing in a free market as they are heavily subsidized by the government. It's no different from what Silicon Valley VCs do, pump loads of capital into a new industry so that it's difficult for any competitors to emerge. Once a company has a monopoly on a market innovation suffers, products stagnate or actively get worse, prices increase with a lack of competition, and the consumer suffers. In the case of EVs, there is the added issue of manufacturing capacity which is important for security. While I would love a cheap new EV now, I would prefer for my children to have sustainable cheap EVs in the future.
"China isn't operating as a free market like we do, this is just like what silicon valley does in our free market"
Silicon Valley which is also heavily subsidized by the US government.