I think Americans subconsciously know their auto industry cannot compete. So the options are either destroy domestic auto industry & lose elections or protectionism. No surprise they choose the later option.
I find it extremely ironic that the US originally thinks it can change China with trade. When in fact the opposite happened and now the US economic system looks more like China due to industrial policies.
China never claimed to be free market. Only the US previously used to believe that their own free market system is more efficient than state capitalism until it was proven otherwise.
Now the US is trying to compete with China by copying China’s state capitalism.
I think Americans subconsciously know their auto industry cannot compete. So the options are either destroy domestic auto industry & lose elections or protectionism. No surprise they choose the later option.
I find it extremely ironic that the US originally thinks it can change China with trade. When in fact the opposite happened and now the US economic system looks more like China due to industrial policies.
The free market system is off the menu.
Is it still “free trade” when the government pours billions into subsides over the last decade?
https://asia.nikkei.com/Spotlight/Electric-cars-in-China/China-gives-EV-sector-billions-of-yuan-in-subsidies
You tell me.
Tesla to get US$41 billion in government subsidies over made-in-US EVs and batteries
Those subsidies apply to any vehicle built in the US whether it’s a German, American, Korean, Japanese, or Chinese company.
China never claimed to be free market. Only the US previously used to believe that their own free market system is more efficient than state capitalism until it was proven otherwise.
Now the US is trying to compete with China by copying China’s state capitalism.