It looks like a big move is happening in the automotive industry. What does it mean for the future?
This isn’t just about avoiding tariffs. China NEV makers see export markets as a buffer during local slowdowns. If one market struggles, they can rely on others to stay afloat. Setting up shop in the EU or Mexico builds good ties with those countries and creates local jobs. Plus, they can save around $5K in shipping costs, which helps offset the higher costs in China.
@Ren
China’s GDP growth is 4.6% with 0.6% inflation, which feels like a recession. Meanwhile, the EU is at 0.8% growth with 1.7% inflation, which seems more resilient. What’s your take?
Willow said:
@Ren
China’s GDP growth is 4.6% with 0.6% inflation, which feels like a recession. Meanwhile, the EU is at 0.8% growth with 1.7% inflation, which seems more resilient. What’s your take?
I just had this conversation. China’s still considered ‘developing,’ so they grow faster, right? Europe is older, so growth is slower. That makes sense, doesn’t it? Developing economies are often seen as powerhouses in manufacturing.
@Alex
Wall Street doesn’t care if it makes sense to short the Chinese stock market. If they can convince people to believe it and then short the market, they will. This forum is one of the places where misinformation spreads. Trump even called the US a developing nation and China a developed one, but the US is just good at GDP metrics.
@Willow
The misinformation here is everywhere, and that’s just nonsense.
Dru said:
@Willow
The misinformation here is everywhere, and that’s just nonsense.
Seems like a cheerleader for the CCP, popping up all over to praise their leader’s achievements.
Willow said:
@Ren
China’s GDP growth is 4.6% with 0.6% inflation, which feels like a recession. Meanwhile, the EU is at 0.8% growth with 1.7% inflation, which seems more resilient. What’s your take?
GDP growth of 4.6% with 0.6% inflation signals a recession
There’s a difference between healthy growth and the stages of an economy. Japan didn’t really have a recession for 30 years; it just stalled. Economists think China could be facing a similar crisis to Japan’s in the 90s. There are similarities, but it’s up for debate.
The GDP growth and low inflation suggest weak domestic demand and an economy reliant on exports, which many economists believe isn’t sustainable in a capitalist system. Japan fell into that trap too.
Meanwhile, Europe is recovering from its energy crisis, and that 1.7% inflation figure is the first sign of real health. Still, the internal market in Europe seems healthy and sustainable.
In short, you might want to read a basic economics book.
@Ren
LOL, EU the nation?
China will just eliminate all ICE outside the US and EU. That’s how it looks.
Willow said:
China will just eliminate all ICE outside the US and EU. That’s how it looks.
Sounds good
Willow said:
China will just eliminate all ICE outside the US and EU. That’s how it looks.
Not with the tariffs they won’t.
They should build in the US but only if they partner with an American company.
Indra said:
They should build in the US but only if they partner with an American company.
Let them go in the US.
China needs to eliminate 45% of ICE in their country.
I can only guess how many recalls there will be if this happens.
Morgan said:
I can only guess how many recalls there will be if this happens.
China makes better cars, right? Just ask the CEO of Ford.
Morgan said:
I can only guess how many recalls there will be if this happens.
China makes better cars, right? Just ask the CEO of Ford.
It really depends on the brand. I wouldn’t doubt BYD, but Leapmotor?