January 23th 2024 Friday

[바켜누]

America’s loathing of China is now in full swing while the wave of Chinese electric vehicles running high. The frosty geopolitical climate will feed the sentiment that Chinese subsidized cheap production unfairly puts Western workers on the scrapheap. Also the development of its EV is believed to have stemmed from ransacking of technology from other countries. This makes lots of countries shield their carmakers by fending off the Chinese wave. Yet, locking out China would be a mistake as welcoming the inauspicious trend does have benefits.

One reason is that The market trend for EV has already changed regardless of China. Moreover, When it comes to manufacturing EV, It is less labor-intensive. So It will be hard to blame China for job losses this time. 

Next consider the gains from letting the market flow. Chinese Cheap EVs will allow consumers to spend on other things.  Also, Chinese cars’ thriving doesn’t mean losing competence in part because it has been so distorted by subsidies and state control. 

Last, consider the benefits to the environment. Climate policy is being made and it financially burdens consumers. Asking them to go green is tall order and only to remain backlash. Therefore, Embracing affordable Chinese cars could ease the tension to net zero emission. 

In this regard, EVs made in China are not likely to bring about chaos in the market. Therefore the world shall let the industry invigorate so that the competition could be wider.