China’s car industry with massive overcapacity exports 15-20% of its cars overseas. Germany exports 75-80% of its cars to other countries. DW is very skilled in shaping people’s opinions.
A significant part of that German export goes to the US. It is a good thing that the US government has taken counter measures to re-calibrate the competitiveness of the German car manufacturers versus that of the the US automakers.
Yes, CHINESE overcapacity. Have you seen the hundreds of thousands of EVs rotting away in China or the flooding of EVs in EU ports. Don't try to pretend, you can't sell the absurd subsidized numbers at home so China attempts to flood the world. It really is that simple, if the CCP wasn't paying for it the problem wouldn't exist.
@@thecompradorand China is building factories in Europe. Byd in Hungary, leap motor has partnership with Stellantis. Dacia spring is build by dongfeng in partnership with Renault.
Free markets don't exist in China. That is the only thing you really need to learn. Never have, it was all pretend and still is. The government is literally directing the show and subsidizing certain industries, nothing free about that.
The west invaded China during the infamous Opium war to defend their right to freely trade opium in China. Western version of "Free trade" existed almost 200 years ago already! 🤣
I love Chinese EVs! They are better than West made and more affordable! West governments protectionism will not help their own industry, but only kill consumers willingness to go green! Pity the world is truning around now!
Airbus can't deliver nearly enough to meet the demand. Their order books are filled for years to come. That's a perfect example of under capacity, but I know a bot can't contemplate on things like these,
@@doujinflip It has got nothing to do with popularity and has everything to do with limited supply in a heavily regulated industry. Most airlines wouldn't care which manufacturer they buy from as long as they are up to international aviation standards. It's the reason why Boeing still delivers aircrafts and has new orders every year despite all the recent controversy. There are only a handful of aircraft manufacturers that are compliant globally and caters to commercial airlines. The same goes with AI chips and NVIDIA, not many competing manufacturers due to the high cost of investment and standards for production. Being the only few players in the industry doesn't mean they are "popular", it just means they are ahead in a growing marketplace.
@@gaborrajnai6213 Again, it's not about private companies building overcapacity -- it's about the Chinese gov't funding their local EV industry to overbuild capacity to undercut foreign competitors in markets abroad. This practice is explicitly prohibited under China's WTO obligation.
Explain and provide specifics as to what hidden meaning might be embedded into your comment/reply. I'm not just some anyone requiring it from whomever you and everyone else on TH-cam, whoever you may be.
According to your "Over Capacity " logic Then all net export countries are over capacity: Taiwan - Advance semiconductor US - Firearms and mass destructive weapons German - Luxury cars French - Luxury goods & fashion Swiss - Luxury timepiece Japan - Automobile
I love Chinese EVs! They are better than West made and more affordable! West governments protectionism will not help their own industry, but only kill consumers willingness to go green! Pity the world is truning around now!
Coca-Cola is not only drunk by Americans but also sold all over the world, is this overcapacity? McDonald's, besides being eaten by Americans, is also sold all over the world, is this overcapacity?
This is the coldest hot take I’ve ever seen. McDonald’s produces goods for stores it already has - meaning it’s supplying customers it knows it already has. China is building cars for customers that currently don’t exist that it’s hoping to find somehow since its own consumers aren’t buying. This is overcapacity.
@@noahholland1795 How do you know Chinese cars are subsidized by the state ? BYD is a lot cheaper because they build everything themselves. Even car makers in China can't compete, car makers in other market probably can't stand a chance.
@@delusion2987China's supply chain is so good that it doesn't have to outsource. It has sophisticated and efficient production lines and dedicated workers. These are amongst the other things that make the Chinese products so affordable with good quality, whether with or without be subsidized. To be fair, isn't Tesla enjoying a form subsidizing as well? What about US agriculture produce, isn't it heavily subsidized?
@@DaxVJacobsonActually we have virtually full employment, despite the punitive trade embargo Europe has inflicted on us for generations. Each country does what it does well, the Europeans are very good at being lazy and subsidised, they have perfected that expertise, so good luck to them.
@@DOWNUNDER. we have other industries to focus on...American cars are not bad but just over priced for similar otpr better options...why would anyone slave away to buy overpriced garbage?
That's because the US still occupies Germany. Germany is not a sovereign country, and German foreign policy is decided in Washington, not in Berlin. Don't forget what the first Secretary General of NATO (Lord Ismay Hastings) said: "NATO is there to keep the Americans in, the Russians out and the Germans down". Germany has been occupied by the US since 1945, even today there are still 40 US military basis in Germany.
When they sell BMW, Mercedes, VW, Toyota, Honda, Nissan and Hyundai all over the world it's free trade. When PRC sells EV all over the world, it is massive overcapacity.. Same ' Copy Paste' playbook as used by the White House. 😂😂😂😂
LMAO, yeah it has nothing to do with the CCP. Everyone is just too mean to those poor little EV makers. Yet, everyone else that WASN'T subsidized to kingdom come was granted access all over the world. NO one but China seems to have an issue, yet people like you I.E Chinese netizens never stop to think it is your government that is at fault.
@@iFryTube if nobody wants to buy chinese "junk" then why cry that China is flooding the world market? Truth is Western car brands are struggling to compete with Chinese EV and that's the main reason for increased tariffs.
I am in South-east asian country where my country doesn't have own national car manufacturing and the US and EU always want my country to have free trade for your export cars because we don't have cars to sales to your countries but you won't accept other countries to sales cars to you, it is not fair!!! 😂😂😂
It's like if you had such cars and a rival entered your market with cars where they artificially lower their price and pay huge amounts of money to the industry to destroy the competition with prices.
It's not problem that China has cars, it's just that they artificially lower their prices. Europe is also not a small country, but a large market of 500 million people.
An idiotic comparison because it's situation when you have such car industry and not when you don't have it, because if you don't have it, you have nothing to lose and you gain from such an exchange of goods, not lose where each country specializes in producing something different
Xi had seen the light (Tesla) when EU governments were still chuckling about those silly EV's. Well, the tables have turned and now it's the Chinese automakers who are in the driver seat.
you have overcapacity if supply is higher than demand. And that leads to a price war. And a price war where some of the producers are subsidized by the state is destructive behaviour.
1:58 DW is reciting Janet Yellen rhetoric on China overcapacity. I wonder if this just another china bashing. Europe will sing along with US whenever US invented new vocabulary against China .
Germany is not a sovereign country, and German foreign policy is decided in Washington. Don't forget what the first Secretary General of NATO (Lord Ismay Hastings) said: "NATO is there to keep the Americans in, the Russians out and the Germans down". Germany has been occupied by the US since 1945, and today there are still 40 US military basis in Germany.
Exactly. It feels like bloody nonsense considering the growing demand here in Europe and the rest of the world. We NEEEED cheaper EVs, and China seems to be the only country doing this. I hate the CCP, but for the environmental long term benefits and user experience I am willing to the make a possible exception here.
Free market is a lie. Liberty is a lie. We live under the lies of the colonizers. They built the world under the structure of colonialism. They just don’t call it that name anymore. Underneath nothing has changed. China is the first one to challenge that. Let’s make it happen and have a new world for humanity and civilization
the US and Europe didn't transfer double digit shares of their GDP into industrial subsidies to artificially raise production in comparison to their consumption.
@@Cotswolds1913 Do you know that the US government spent nearly $100 billion to subsidize chip companies that produce in the United States starting in 2022? Do you know that the South Korean government subsidized South Korean auto battery manufacturers with $30 billion at the end of last year? Even the EU has approved billions of euros in subsidies this year to develop the battery and photovoltaic industries in Germany and France. Double standards again?
@@zhaoraymond8656 Yes, we started to bring subsidies to the table under the Biden administration, i.e. we are responding the precedents which have been set by China and other East Asian countries practices for decades.
@@zhaoraymond8656 Yes, the US began subsidies under the Biden administration, in response to China & other East Asian countries having done so for decades. Chickens coming home to roost. Also it was more like $50 billion on the CHIPS act.
@@Cotswolds1913 You are talking nonsense, every country is subsidizing its own industry, just search and you will know the answer, instead of repeating the nonsense that others have told you.
And directly harms domestic capacity to develop its own competition. Hence why large hopeful nations like India and Indonesia also charge hefty import fees.
@@doujinflip using tariff should only be short term measures for any country. If China is able to produce quality and smart products, one should work harder to be as competitive as possible. By so, can everyone see the country achieve competitiveness among its neighbors.
@@ronaldphoong You do know China also imposes punitive tariffs on many imports effectively blocking them from their domestic market, right? Oh, they also outright ban many western companies from even operating there or force them to hand over all their IP and enter into join ventures with local firms. You must be very naïve or ignorant if you think China is some shining example of free markets and fair competition.
Overcapacity is code for " we lost at our own capitalism game and cant compete". Its like the rich kid that takes his ball home when he is losing a game.Its easier to jyst ban Chinese goods than it is to revitalize western manufacturing muscle. Western nations spent 30+ years dismantling their own production lines and shipping them to China to make profit.Niw that China flipped the table on them, learn how to work markets, manufacturing etc. It is not fair? Instead of investing in western youth by providing education, affordable housing , heatlh to promote population growth, innovation, etc. The same greedy bastards will much rarher spend our tax money buying weapons to fight China.
The auto industry is always consider by the US, Germany and France as the backbone of its industrial capabilities. With the advent of the EV”s overhauling the auto industry from the internal combustion engine to electric vehicles, the US and the West found themselves left behind with the inabilities to compete successfully with China. The US maintain the mechanisms for deterring potential competitors in other countries from even aspiring to a larger regional or global role. The US like to portrays other countries as an antagonists and as well as an adversary when the US face with competition in technology and high-tech industries that the US regard it as their domains and sphere of influence and will not accept any competition from another country. The US wanted to destroys China and its economy in order to prevent China from competing with the US. The US multiple sanctions is a deliberate attempt by the US to obliterate China in its economic and trade war against China. The US sanctions has long been a diplomatic and economic tool used by US seeking to influence others. Europe allowed themselves to be screw by the US as they are slaves to the US interest and the US foreign policy. Europe are buddies of the big bully and the big bully maintains the system that they benefit from the carefully crafted US “so-called” US rule based international order that they want to keep the system in place in order to make sure that the various privilege that they have in the world economy are not taken away or threatened their privilege position. The US and the Western powers position themselves as the world’s moral arbiters, championing human rights, democracy and the rule of law on the global stage. It’s the prerogative of the US to impose new trade tariffs on EV’s and other China green energy imports. The 100% tariff by the US on EV will hurt the lower income Americans most as it deprave the lower income Americans from owning an inexpensive and good EV for their daily transportation. The 100% tariff is a tax levied on cheap China EV that the lower income Americans have to pay in order to owns an EV from China made models. Other countries will be able to enjoy an inexpensive and affordable car within their means Instead of focusing on ideological differences, the US should provides a solid foundation for pragmatic cooperation aiming at strengthening connectivity across the world. Instead US should leverage the thriving Chinese economy as a substantial market and foster stronger connections. Decoupling from China or de-risking with China is neither practical nor necessary and poisoning the relationship by decoupling or de-risking resulted in the lost of opportunity. But instead, the US discourage China and other countries from challenging the US leadership or seeking to overturn the established political and economic order. The major US objective is to safeguard US interests and promote US foreign policy. The US will not tolerate any objection that threatens US hegemony regarding US interests and US foreign policy. If necessary, the US must be prepared to take unilateral action. The US accuse China of excess capacity in green energy. The US like to use ambiguous words like decoupling, derisking, and tariffs in implementing trade barriers and economic sanctions against China. The US wanted to destroys China and its economy in order to prevent China from competing with the US. The US multiple sanctions is a deliberate attempt by the US to obliterate China in its economic and trade war against China. The dense bureaucratic jargon and minute technical detail is a declaration of economic war on China. The US is full of mischief by creating trouble and exerting its power and hegemony as well as economic dominance all over the world.
@@RajDeelish Conveying my thought as I want it to be communicated in my own way. It is no consequence to me regardless whether my written content is over 1,000 words in length or in brief description. Point taken.
China is a country of 1.4B vs USA of 327M. China hasn’t responded to USA tariffs. When they do, US companies could be closed to Chinese markets which could devastate the US economy. Trade wars don’t work. G.W. Bush was advocate for free trade as US companies would be available to wider population. Losing 1.4B consumers would have an impact on US..
@@icu17siberia China can cripple the USA by denying the rare earth metals that go into chip production. 60 Minutes did an episode on this. Any electronic device depends on rare earth metals including US weapon systems. This is a US National security issue.
@@williamquemuel7824 USA has big resources on its own. And access to even bigger resources in Canada. China might be able to strangle Europe on resources. But China can not strangle USA.
@@hkonhelgesen If you read my main comment, my topic was on exports not resources. China has consumer base of 1.4B versus 367M for America. US exports (Boeing planes, GM&Ford cars, …) will be directly impacted. The EU willl benefit more (Airbus, VW…). Your comment is shortsighted.
Because China is not dependant on oil revenue it could modernise to electric production. The EU is also not an oil producer and therefore should follow the Chinese path before there bribed to stay put in toxic oil.
the Chinese market is the smallest as a share of its economy in world history, that's why the EU has such a huge trade deficit with China. It's market is already closed, even if not for automakers, most of that which is sold by German firms is built in china anyway.
China produces most of it's cars for the domestic market while Germany exports the majority. The term "overcapacity" is just ridiculous, especially when it comes to countries like Germany.
The ones loosing are the US consumers that will have to pay more for a Chinese EV, which are better and cheaper than any of the American made EVs. China could also reply by imposing export controls on materials needed by US manufacturers in making their own EVs. History has shown many times that trade wars also lead to armed conflicts in which WE ALL loose!
I don't think so. When the Chinese EVs arrive, I'll still be buying Toyota. I could care less if they show up or not. I won't be paying more or less for them.
@@RajDeelish With the break up of Globalization, you might continue to buy Toyotas, but they will be made, for example, at a factory in Mexico with parts from China, India and Mexico. Auto manufacturers already share many designs and parts. That why when one model has problems, many other autos hve them too. Underneath, they are the same vehicles! I insist, consumer is being deceived and abused! Greetings from Costa Rica 👍
@@firerock9320where is your source? The biggest rule breaker of WTO is actually US. All tariffs against China are violation of WTO rules. But your media never tell u
@@firerock9320 impossing tarriff is obviously againts WTO rules, and you're pointing finger to China. How about US Inflation Act spent billions to subsidise US company? Isn't that violated WTO rules?
@@araara4746 yes true every country wants their businesses to boom the US, EU they have massive subsidies on inefficient businesses they also disguise these subsidies
In economics, as long as the price of any product is lower than its cost and that product is sold at a loss, that is called overcapacity. Yellen's ”overcapacity“ does not refer to overcapacity in economics, but to the fact that China's domestic demand is already sufficient, so it must sell abroad, and China's products are so good that other countries are not competitive, she calls this "overcapacity". If this is the case, then Coca-Cola, McDonald's, and agricultural products (which the U.S. has been asking China to buy) are all overcapacity
@@firerock9320 BYD and NIO cars are sold for literally 10 times the profit on the EU market than the domestic Chinese market, so what exactly are you talking about?
Sanctions do not help national car industrie. Japanese car and electronic products from Japan and South Korea were also sanctions by USA. in what situation are these industries in USA now? Not better or even worse. The situation is very easy and they are not investing in more R&D. Much of the profits go to salaries of the top officials and investers. Easy money...
There is zero logic in what you are saying. USA had a perfect electric cars before anybody else in the world. USA does not need Chinese cars. Now that Europe was sleeping and not investing in change, that’s a different question. Maybe you should also impose big taxes on imports from China. Unfortunately all big European concerns long ago outsourced everything and actually massively invested in the Chinese economy. Why are you now explaining?
Asians never complain about excess imports from Europe. However, Europeans are accustomed to living in luxury which is actually very poor in natural resources.
Germany exports 80% of its vehicles, Japan exports 50% of its vehicles, the U.S. exports 25% of its vehicles...China exports 10% of its vehicles. Western nations: "overcapacity!" Also, notice how the entire pretense of the discussion went away the more they spoke. This guest started discussing overcapacity, then discussed how he thinks that tariffs are a good thing because they can force Chinese EV companies to set up factories in the E.U. If the U.S. hadn't crippled the WTO dispute mechanism, they would obviously rule against this practice.
China are the ones who crippled the WTO, not the US. The US simply stopped letting china punch the WTO in the face without a commensurate response. Also, none of the countries you mention maintain double digit percentages of their economy to industrial subsidies, these countries' export rates were achieved through genuine market exchange.
Good for rest of the world. We can purchase Chinese EV in a lower price. One thing concerning is the established car manufacturer like GE, VW, Toyota, ford etc..is going to lose its international market to Chinese.
Do you even know how automotive companies in China operate???? And that there are dozens of companies, each with a different development model, which compete with each other, and the one that eats its opponents then enters foreign markets, perfectly prepared to conquer with the best model and staff.
@@frankguz55 You must understand that Germany is not a sovereign country. German foreign and economic policy is decided in Washington, not in Berlin. Don't forget what the first Secretary General of NATO (Lord Ismay Hastings) said: "NATO is there to keep the Americans in, the Russians out and the Germans down".
Some 3 weeks ago I've heard DW lamenting about China delivering it's first cargo of 5000 EV to Germany. You were devastated that China has beaten you at your own game. You employ similar tactics with smaller European countries effectively crushing their economies. China had a good teacher in you. They didn't practice what you preach, they practice what you (Germany) have been practicing. .....
You must understand that Germany is not a sovereign country. German foreign and economic policy is decided in Washington, not in Berlin. Don't forget what the first Secretary General of NATO (Lord Ismay Hastings) said: "NATO is there to keep the Americans in, the Russians out and the Germans down". Germany has been occupied by the US since 1945, and today there are still 40 US military basis in Germany.
@@vgstb I understand very well German tactics since Otto Bismarck. And as you are saying Germany is not sovereign country you know very well this is bullsh*t. On the other hand what you will do to smaller countries if Germany had free hand. I'm truly afraid to ask....
@@voyd1507 Don't forget what the first Secretary General of NATO (Lord Ismay Hastings) said: "NATO is there to keep the Americans in, the Russians out and the Germans down". Germany has been occupied by the US since 1945, and today there are still 40 US military basis in Germany.
Why ? Did china put tariffs on european cars ? China can sell cars here Let people decide if they wait to buy chinese cars Why are u afraid of competition
What he is missing is that the US has a growing population and so can consume things (like cars) as well as produce them. Germany and Europe as a whole must export because the aging population does not consume what it manufactures as a younger population would. So economise that are export driven like China and Europe must find consumers...But whom? Europe produces expensive high end goods that poorer emerging economies cant afford . The US is growing weary of enforcing the Global Order.
European car manufacturers depend heavily on their Chinese operations to generate profits. It is nearly imposible to make money under the current state of affairs in Europe! Too many benefits and too little productivity!
Top executives at BMW and Volkswagen on Wednesday 8 May warned against imposing EU import duties on electric vehicles from Chinese automakers, saying it could upend the bloc's Green Deal plan and harm EU automakers the import of their cars made in China.
There are literally acres and acres of land covered with bumper to bumper BYD vehicles adjacent to docks waiting for export....... all waiting for the DOM to be changed on the compliance plate to reflect recent manufacture.
Stop spreading misinformation. Most cars that are stationed in the EU harbors that are waiting for further inland distribution are made by EU, Korean and Japanese car manufacturers. Only 5% of the cars imported in the EU are made by Chinese domestic brands.
There is nothing wrong with protecting your industries and economies against cheap imports from a foreign adversary constantly trying to undermine your values.
China 🇨🇳 is promoting BRICS and using it as a dumping ground, a correct term for overcapacity. China is hurting developing countries with its dumping practices. - Brazil launches anti-dumping probes on China after imports soar. - India also imposes five-year anti-dumping duty on Chinese products. Both are BRICS countries.
I still remember the US forces Taiwan to buy its meat products where it has a substance that was banned in many countries. Many Taiwanese protested but US has great leverage on Taiwan because it’s always using the donkey and the carrot strategy knowing Taiwan can be bullied because it needs US support.
What is "dumping"? You think China is giving away free stuff? You wouldn't be talking about Chinese cars if there wasn't a demand for it. In a good liberal/free market system, the people decide what's valuable to them and they have the right to access whatever they want. Looks like China is practicing capitalism better than the west
The guy need to invest in a mic and not use his speaker. I wouldnt use a speaker for my job, why would anyone think this is a great idea for an interview.
And his English...maybe a mic would make it easier to understand him. How Europeans communicate with each other in their many different Englishes is a mystery. No doubt, there's a great deal of miscommunication.
European union needs to make sure there is at least a capacity to make cars domestically and like 15% domestic production. If it has to be with tariffs, yes
75% of the German domestic manufactured cars is being exported. A significant part of that export goes to the US. It is a good thing that the US government has taken counter measures to re-calibrate the competitiveness of the German car manufacturers versus that of the the US automakers.
In fact, it is impossible for every oil-producing country to truly realise the transformation of clean energy! Only countries that rely on energy imports will attach such importance to new energy investment like China!
@@firerock9320 Because China has been playing the west for fools and unfortunately many in the west fall for such tactics. Plus are systems can be manipulated and are very slow to change which is a problem sometimes.
Since EVs are not polluting, they should replace the polluting ICE cars. To make them more affordable, the US & EU should subsidize EVs just like China. Give more subsidy to make them cheaper than EVs from China. Beat them at their own games. 😂😂😂
@@BrandyHeng007 China doesn't build cars after advanced deposits, that is why they have graveyards of EVs expanding Kilometers and are dumping unsold cars at foreign ports around the world. China builds to collect government subsides.
Since EVs are not polluting, they should replace the polluting ICE cars. To make them more affordable, the US & EU should subsidize EVs just like China. Give more subsidy to make them cheaper than EVs from China. Beat them at their own games. 😂😂😂
China should export many more cars to Germany to relieve the overcapacity. Germany sells many more cars in China than in their own country. Or, Germany car maker should make room for china capacity at least in Chinese market.
This is exactly why the German car makers are against implementation of EU import tariffs on Chinese made cars. Also a lot of German car manufacturers make cars in China that are exported to the EU.
If this is the basis of the argument of China's "overcapacity" in EVs, then Germany and Japan has massive overcapacity for decades... you have seen their ports filled with cars and these cars have been transported to many countries for years and years. It is really interesting that the USA and Europe have not complained about these overcapacities... ever ! What a load of lies.
Tariffs are hardly protectionist when China is not competing in a traditional free market sense. The Chinese offer better prices not because they are more efficient, but because the CCP manipulates its currency to make exports more competitive (transferring wealth from importers which is usually the household sector to exporters), sets the interest rate of deposits and loans artificially low (transferring wealth from savers to borrowers), and a whole of host of direct and indirect (e.g., subsided land prices, no environmental protection, little to no workers rights, absent social safety net, etc.) subsidies. The CCP is NOT competing in the traditional free-market sense; it wants to export its way to wealth by impoverishing and weakening the West in the long-run. Thankfully, BOTH Trump and Biden realize this, and are trying to level the playing field to prevent another hallowing out of the US's industrial base, leading to more unemployment. Once the CCP decides to play by the rules of a market economy, then we can have an honest discussion about competition.
CCP cant manipulate Chinese currency as this washington fabricated imaginary entity does not exist and as such cant drive policy in China. CPC however does less currency manipulation and less subsidies than the US regime so yes tariffs are protectionist policies and pretending its not is just ridiculous.
1 EUR = 7.85353 CNY Euro to Chinese Yuan Renminbi exchange rate has had it's ups and downs, but when seen on the longer term (10 years) the exchange rate has been quite stable (fluctuating around 1:7.5)
This isn't really about overcapacity. It's more protectionism from the US, since these cheap state sponsored chinese goods would hurt/destroy the domestic industries, which has been heavily subsidized by the Biden administration. These domestic industries are supposed to generate jobs and lively hood but with the introduction of these cheap state sponsored chinese good they are at a grave peril of job loss and possible closure, enter the tariffs to protect these industries. Most likely EU would do the same to protect its industries.
The last 30 years bore witness for the first time in 250 years a non-western player beat it at its own game. Japan almost did too in the 80s but unlike it, China will not cave to pressure and is a much more omnipresent and sizable player.
"be a big burden on transatlantic cooperation." - We in the US are tired of trying to convince Europe on this, it's not like you guys don't know better.
The world has become a board game in which: USA is playing Checkers, thinking 1 move ahead. Russia is playing Chess, thinking 5 moves ahead. China is playing Go (Weiqi 围棋), thinking 10 moves ahead.
No matter how hard DW is pushing the Chinese Overcapacity argument, it is unlikely for Germany to support any EV tariffs on Chinese EV. German cars has 17% market share in China while China only have 3% market share in Germany.
Why tariffs ? What about free trade? That seems to apply ONLY when Americans and Europeans have better goods, when others win, it doesn't apply anymore. And then they are surprised that no one takes them seriously anymore
Let's be honest, decades ago the US public was sold the idea that opening trade with China increase US manufacturing with a huge new market as well as encourage democratic reforms and improve human rights in China. Instead of isolating them we make them play by the same trading rules as everyone else and strengthen the forces of reform. Fast forward to now and one of the few things Democrats and Republicans can agree on is that we've lost manufacturing jobs and China isn't any closer to democratic reform than is was under Mao. The debate isn't about whether the US should reduce Chinese imports, the debate in the US is how much and how fast.
In the past, free trade was discussed because the United States could earn huge profits, but now it is no longer discussed because the United States cannot compete. In the final analysis, it is still interests and has nothing to do with freedom and democracy.
China’s car industry with massive overcapacity exports 15-20% of its cars overseas. Germany exports 75-80% of its cars to other countries. DW is very skilled in shaping people’s opinions.
It will come undone.
A significant part of that German export goes to the US.
It is a good thing that the US government has taken counter measures to re-calibrate the competitiveness of the German car manufacturers versus that of the the US automakers.
Germany has 83M people. China has 1.4B. Do some math on which one can wreck the world with overcapacity
Yes, CHINESE overcapacity. Have you seen the hundreds of thousands of EVs rotting away in China or the flooding of EVs in EU ports. Don't try to pretend, you can't sell the absurd subsidized numbers at home so China attempts to flood the world. It really is that simple, if the CCP wasn't paying for it the problem wouldn't exist.
No, you are just not capable enough to understand Europe. Germany is exporting their cars mostly to other European countries.
Japan and South Korean exported 55% of their auto manufacturing. While China only export 15%. And China is oversupplying
Germany 75%
Japanese and Korean build car factories abroad to provide local jobs. Germans have factories in China.
@@thecompradorand China is building factories in Europe. Byd in Hungary, leap motor has partnership with Stellantis.
Dacia spring is build by dongfeng in partnership with Renault.
@@thecomprador Those German factories in China are exporting more than half of what they make to the EU and the US.
If US willings to open up, Chinese loves to manufacture EVs in US.
But US doesn‘t have the balls.😆
This also confirms that there isn't such a thing as "free market"
Of course not, the market is only free if the EU and US can export, not for import into the EU and US market.
There is such a thing for certain countries and during certain times. It exists when it's convenient.
Free markets don't exist in China. That is the only thing you really need to learn. Never have, it was all pretend and still is. The government is literally directing the show and subsidizing certain industries, nothing free about that.
@@vgstb Oh get over yourself and stop pretending you are not a CCP .50 cent paid propagandist.
The west invaded China during the infamous Opium war to defend their right to freely trade opium in China. Western version of "Free trade" existed almost 200 years ago already! 🤣
Air bus got huge subsidy and sells jets all over the world. This is a perfect example of over capacity?
I love Chinese EVs! They are better than West made and more affordable! West governments protectionism will not help their own industry, but only kill consumers willingness to go green! Pity the world is truning around now!
Popularity is not overcapacity. If anything Airbus and Boeing can’t deliver new planes fast enough.
It's only overcapacity when other companies do that.
Airbus can't deliver nearly enough to meet the demand. Their order books are filled for years to come. That's a perfect example of under capacity, but I know a bot can't contemplate on things like these,
@@doujinflip It has got nothing to do with popularity and has everything to do with limited supply in a heavily regulated industry. Most airlines wouldn't care which manufacturer they buy from as long as they are up to international aviation standards. It's the reason why Boeing still delivers aircrafts and has new orders every year despite all the recent controversy. There are only a handful of aircraft manufacturers that are compliant globally and caters to commercial airlines. The same goes with AI chips and NVIDIA, not many competing manufacturers due to the high cost of investment and standards for production. Being the only few players in the industry doesn't mean they are "popular", it just means they are ahead in a growing marketplace.
There is NO OVERCAPACITY on Toyota ( world number 1 car producer) for ages,
NEVER EVER.
So long as it's not gov't paid overcapacity, no issue.
Was Toyota subsidized by the Japanese Government likewise back then?
Why should we care who is paying for the overcapacity? Is toyota foreign? It is. Is toyota building more than their internal markets need? It is.
@@gaborrajnai6213 Again, it's not about private companies building overcapacity -- it's about the Chinese gov't funding their local EV industry to overbuild capacity to undercut foreign competitors in markets abroad.
This practice is explicitly prohibited under China's WTO obligation.
@@tooltalk Never heard of GM bailout? IRA ( Inflation Reduction Act) and Chip Acts you hypocrite bot?
Iphone is over capacity. Microsoft is over capacity. USD is over capacity.
Explain and provide specifics as to what hidden meaning might be embedded into your comment/reply. I'm not just some anyone requiring it from whomever you and everyone else on TH-cam, whoever you may be.
USD isn’t over capacity that’s why the value is increasing everyday
@@icu17siberiait is disturbing the market and aginst WTO which is dead due to US trade war
@@LSmoney215USA destroyed Europes economies of course the dollar value goes up while the euro goes down.
@@LSmoney215 Against gold?
According to your "Over Capacity " logic
Then all net export countries are over capacity:
Taiwan - Advance semiconductor
US - Firearms and mass destructive weapons
German - Luxury cars
French - Luxury goods & fashion
Swiss - Luxury timepiece
Japan - Automobile
Netherlands plates
true
West - pure bs
@@ligerdave "West pure BS" is Much overcapacity ...
US and Europe ≠ the world. DW should learn this
It is extremely infuriating. They talk as if they are the world.
@@SynapticWonderso why aren’t you watching Chinese news outlet 😂
@@trauddien2250 If you have no problem with people claiming they are the world. You are the problem
It's that good old colonial spirit!
Sooo hateful!
I love Chinese EVs! They are better than West made and more affordable! West governments protectionism will not help their own industry, but only kill consumers willingness to go green! Pity the world is truning around now!
Coca-Cola is not only drunk by Americans but also sold all over the world, is this overcapacity?
McDonald's, besides being eaten by Americans, is also sold all over the world, is this overcapacity?
Those companies are not subsidized by the state. Beijing is putting its thumb on the scale.
local Coca-Cola bottlers employ local people, McDonald employ local people and suppliers EU McDonald's food is different than American food.
This is the coldest hot take I’ve ever seen. McDonald’s produces goods for stores it already has - meaning it’s supplying customers it knows it already has.
China is building cars for customers that currently don’t exist that it’s hoping to find somehow since its own consumers aren’t buying. This is overcapacity.
@@noahholland1795
How do you know Chinese cars are subsidized by the state ? BYD is a lot cheaper because they build everything themselves. Even car makers in China can't compete, car makers in other market probably can't stand a chance.
@@delusion2987China's supply chain is so good that it doesn't have to outsource. It has sophisticated and efficient production lines and dedicated workers. These are amongst the other things that make the Chinese products so affordable with good quality, whether with or without be subsidized. To be fair, isn't Tesla enjoying a form subsidizing as well? What about US agriculture produce, isn't it heavily subsidized?
In Australia...we do not have those problems...we buy any vehicle we want ....freedom is nice
Chinese junk cars are freely available, but unless you have a time machine you won't buy a Australian produced car
Australia’s Top Exports are raw materials, what do the rest of you do for employment wax surfboards?
@@DaxVJacobsonActually we have virtually full employment, despite the punitive trade embargo Europe has inflicted on us for generations. Each country does what it does well, the Europeans are very good at being lazy and subsidised, they have perfected that expertise, so good luck to them.
@@DOWNUNDER. we have other industries to focus on...American cars are not bad but just over priced for similar otpr better options...why would anyone slave away to buy overpriced garbage?
@DOWNUNDER. Chinese junk? Lmao Most American cars fit that bill too y'know. Best are Honda & Toyota funny how their foreign huh?
EU has too many officials who get paid by EU tax payers but serve for US’s interests. So, whatever US does, EU will follow sooner or later.
Be grateful the Americans provide a blue print whilst euro wastes time with investigations, inquires & committee meetings.
That's because the US still occupies Germany.
Germany is not a sovereign country, and German foreign policy is decided in Washington, not in Berlin.
Don't forget what the first Secretary General of NATO (Lord Ismay Hastings) said: "NATO is there to keep the Americans in, the Russians out and the Germans down".
Germany has been occupied by the US since 1945, even today there are still 40 US military basis in Germany.
@@soothinglycool9806 Right, don't even listen to the comments, their are literally hundreds of Chinese CCP paid commenters in the thread.
@@soothinglycool9806committee meetings? Know we need to call a meeting before calling a meeting
That's a better option than while being paid by EU tax payers serving the interest of Xi and putin.
When they sell BMW, Mercedes, VW, Toyota, Honda, Nissan and Hyundai all over the world it's free trade.
When PRC sells EV all over the world, it is massive overcapacity..
Same ' Copy Paste' playbook as used by the White House.
😂😂😂😂
You get the picture!
True
LMAO, yeah it has nothing to do with the CCP. Everyone is just too mean to those poor little EV makers. Yet, everyone else that WASN'T subsidized to kingdom come was granted access all over the world. NO one but China seems to have an issue, yet people like you I.E Chinese netizens never stop to think it is your government that is at fault.
US bankers and Capitalists 🤡🤡🤡 Who can't compete.😂😂😂
Umm, the guy advised the EU should not follow the US in implementing sanctions. Not sure how you came to the 'copy and paste' conclusion
Before everything was shortage now everything is oversupply 😂😂😂😂
People dont want Chinese junk anymore so China is desperate to get rid of it all before it faces economy collapse 😂😂😂😂
So what’s the problem open the tariffs 😂
@@iFryTube if nobody wants to buy chinese "junk" then why cry that China is flooding the world market? Truth is Western car brands are struggling to compete with Chinese EV and that's the main reason for increased tariffs.
Japanese and Korean companies been shipping overcapacity cars over the world for the last 40 years
They don't block foreign products and doe not have subsides though.
The same goes for the German car manufacturers.
@@couthelloworld Then why complain about Tariffs? Everyone has them, including China's luxury tax of 30% on all foreign goods
@@John-.-Smith111 Maybe you should stop shilling for China... think of all the people that would be better off not having to listen to a shill
Japanes and Korean car makers have to make profit to stay alive. That is the difference.
I am in South-east asian country where my country doesn't have own national car manufacturing and the US and EU always want my country to have free trade for your export cars because we don't have cars to sales to your countries but you won't accept other countries to sales cars to you, it is not fair!!! 😂😂😂
I don't think you understand the situation
It's like if you had such cars and a rival entered your market with cars where they artificially lower their price and pay huge amounts of money to the industry to destroy the competition with prices.
It's not problem that China has cars, it's just that they artificially lower their prices. Europe is also not a small country, but a large market of 500 million people.
An idiotic comparison because it's situation when you have such car industry and not when you don't have it, because if you don't have it, you have nothing to lose and you gain from such an exchange of goods, not lose where each country specializes in producing something different
@@John-.-Smith111 You're kidding ??
DW why don't you invite a Chinese economist to talk about this "overcapacity" nonsense?
Overcapacity of a new and upcoming product is impossible. Failure in EU and North America is the problem.
Nope. Jealousy mixed with fear is the real problem.
Xi had seen the light (Tesla) when EU governments were still chuckling about those silly EV's.
Well, the tables have turned and now it's the Chinese automakers who are in the driver seat.
Protectionism is indeed evil. Tell your country to remove all tech bans on TH-cam, Facebook, Twitter, Instagram...
you have overcapacity if supply is higher than demand. And that leads to a price war. And a price war where some of the producers are subsidized by the state is destructive behaviour.
It’s hilarious when western said that overcapacity of china should be restricted
@@icu17siberia China is getting spanked left and right.
The only thing that is truly overcapacity is the US dollar.
Yeah, nearly majority of the world loves the dollar, you can stay jealous if you like.
@rickjames18 are you sure about that?
1:58 DW is reciting Janet Yellen rhetoric on China overcapacity. I wonder if this just another china bashing. Europe will sing along with US whenever US invented new vocabulary against China .
Germany is not a sovereign country, and German foreign policy is decided in Washington.
Don't forget what the first Secretary General of NATO (Lord Ismay Hastings) said: "NATO is there to keep the Americans in, the Russians out and the Germans down".
Germany has been occupied by the US since 1945, and today there are still 40 US military basis in Germany.
Very true. It's a matter of supply and demand anyway. No matter how much you produce if the market is slow you won't sell much
🇪🇺 is 🇺🇸 🐕
No. No gov't funded overcapacity please.
American soldiers in Europe force them to do so
Chinese EV overcapacity？ Really？ Which headless chicken came up with that idea？
A Chinese eating the head of the chicken 😂
Let us talk about Chinese smart phone overcapacity instead. 😅
Your father
Exactly. It feels like bloody nonsense considering the growing demand here in Europe and the rest of the world.
We NEEEED cheaper EVs, and China seems to be the only country doing this.
I hate the CCP, but for the environmental long term benefits and user experience I am willing to the make a possible exception here.
Janet Yellen
Let the market work.
If the US can’t make cheap EV cars, then close the factories.
It is that simple.
US car manufacturers could be competitive, but the massive blunders of the management has prevented that for a long long time.
Or China could sell their cars somewhere else...
@@vgstbIn order to complete against Chinese manufacture, the US would have to significantly cut its production costs. You know what that means right?
@@tomsriver2838 The government using slave labor like China's uyghurs and rural people?
The West can't compete with China's industrial policy without impoverishing its own citizens. We prefer to not do that.
Americans were perfectly happy when china made shirts and jeans for the whole world, but EVs and solar panels are off limits apparently
Yes. Because it's technology invented in US and Europe
@@frankguz55
So can China demand the royalty of Chinese inventions and patents ?
They wish China remained poor so that they could control China. Poor countries must learn from China
@@frankguz55 Guess who has the most patents in EV and battery tech?
Free market is a lie. Liberty is a lie. We live under the lies of the colonizers. They built the world under the structure of colonialism. They just don’t call it that name anymore. Underneath nothing has changed. China is the first one to challenge that. Let’s make it happen and have a new world for humanity and civilization
If the export of advantageous products means overcapacity, then the United States and Europe have had overcapacity for more than a hundred years.
the US and Europe didn't transfer double digit shares of their GDP into industrial subsidies to artificially raise production in comparison to their consumption.
@@Cotswolds1913 Do you know that the US government spent nearly $100 billion to subsidize chip companies that produce in the United States starting in 2022? Do you know that the South Korean government subsidized South Korean auto battery manufacturers with $30 billion at the end of last year? Even the EU has approved billions of euros in subsidies this year to develop the battery and photovoltaic industries in Germany and France. Double standards again?
@@zhaoraymond8656 Yes, we started to bring subsidies to the table under the Biden administration, i.e. we are responding the precedents which have been set by China and other East Asian countries practices for decades.
@@zhaoraymond8656 Yes, the US began subsidies under the Biden administration, in response to China & other East Asian countries having done so for decades. Chickens coming home to roost. Also it was more like $50 billion on the CHIPS act.
@@Cotswolds1913
You are talking nonsense, every country is subsidizing its own industry, just search and you will know the answer, instead of repeating the nonsense that others have told you.
What the US doesn't buy, the beneficiaries are the countries that can buy at a fair price which indirectly controls inflation in their country. 😀
And directly harms domestic capacity to develop its own competition. Hence why large hopeful nations like India and Indonesia also charge hefty import fees.
@@doujinflip using tariff should only be short term measures for any country. If China is able to produce quality and smart products, one should work harder to be as competitive as possible. By so, can everyone see the country achieve competitiveness among its neighbors.
@@ronaldphoong You do know China also imposes punitive tariffs on many imports effectively blocking them from their domestic market, right? Oh, they also outright ban many western companies from even operating there or force them to hand over all their IP and enter into join ventures with local firms. You must be very naïve or ignorant if you think China is some shining example of free markets and fair competition.
I'd like to buy an affordable EV from China. What's wrong with that and why restrict my choice?
Overcapacity is code for " we lost at our own capitalism game and cant compete". Its like the rich kid that takes his ball home when he is losing a game.Its easier to jyst ban Chinese goods than it is to revitalize western manufacturing muscle. Western nations spent 30+ years dismantling their own production lines and shipping them to China to make profit.Niw that China flipped the table on them, learn how to work markets, manufacturing etc. It is not fair? Instead of investing in western youth by providing education, affordable housing , heatlh to promote population growth, innovation, etc. The same greedy bastards will much rarher spend our tax money buying weapons to fight China.
so we should allow China to destroy our own industries because that would be fair? Really?
The auto industry is always consider by the US, Germany and France as the backbone of its industrial capabilities.
With the advent of the EV”s overhauling the auto industry from the internal combustion engine to electric vehicles, the US and the West found themselves left behind with the inabilities to compete successfully with China.
The US maintain the mechanisms for deterring potential competitors in other countries from even aspiring to a larger regional or global role.
The US like to portrays other countries as an antagonists and as well as an adversary when the US face with competition in technology and high-tech industries that the US regard it as their domains and sphere of influence and will not accept any competition from another country.
The US wanted to destroys China and its economy in order to prevent China from competing with the US.
The US multiple sanctions is a deliberate attempt by the US to obliterate China in its economic and trade war against China.
The US sanctions has long been a diplomatic and economic tool used by US seeking to influence others.
Europe allowed themselves to be screw by the US as they are slaves to the US interest and the US foreign policy.
Europe are buddies of the big bully and the big bully maintains the system that they benefit from the carefully crafted US “so-called” US rule based international order that they want to keep the system in place in order to make sure that the various privilege that they have in the world economy are not taken away or threatened their privilege position.
The US and the Western powers position themselves as the world’s moral arbiters, championing human rights, democracy and the rule of law on the global stage.
It’s the prerogative of the US to impose new trade tariffs on EV’s and other China green energy imports.
The 100% tariff by the US on EV will hurt the lower income Americans most as it deprave the lower income Americans from owning an inexpensive and good EV for their daily transportation.
The 100% tariff is a tax levied on cheap China EV that the lower income Americans have to pay in order to owns an EV from China made models.
Other countries will be able to enjoy an inexpensive and affordable car within their means
Instead of focusing on ideological differences, the US should provides a solid foundation for pragmatic cooperation aiming at strengthening connectivity across the world.
Instead US should leverage the thriving Chinese economy as a substantial market and foster stronger connections.
Decoupling from China or de-risking with China is neither practical nor necessary and poisoning the relationship by decoupling or de-risking resulted in the lost of opportunity.
But instead, the US discourage China and other countries from challenging the US leadership or seeking to overturn the established political and economic order.
The major US objective is to safeguard US interests and promote US foreign policy.
The US will not tolerate any objection that threatens US hegemony regarding US interests and US foreign policy.
If necessary, the US must be prepared to take unilateral action.
The US accuse China of excess capacity in green energy.
The US like to use ambiguous words like decoupling, derisking, and tariffs in implementing trade barriers and economic sanctions against China.
The US wanted to destroys China and its economy in order to prevent China from competing with the US.
The US multiple sanctions is a deliberate attempt by the US to obliterate China in its economic and trade war against China.
The dense bureaucratic jargon and minute technical detail is a declaration of economic war on China.
The US is full of mischief by creating trouble and exerting its power and hegemony as well as economic dominance all over the world.
Exactly!
If you want someone to read what you wrote, write less.
Agree.
@@RajDeelish Conveying my thought as I want it to be communicated in my own way.
It is no consequence to me regardless whether my written content is over 1,000 words in length or in brief description.
Point taken.
When is China going to allow foreign battery competitors to participate in China's local EV market?
Since when "over-capacity" that is defined by basic economics of supply and demand becomes a politicians' call?
China is a country of 1.4B vs USA of 327M. China hasn’t responded to USA tariffs. When they do, US companies could be closed to Chinese markets which could devastate the US economy. Trade wars don’t work. G.W. Bush was advocate for free trade as US companies would be available to wider population. Losing 1.4B consumers would have an impact on US..
@@icu17siberia China can cripple the USA by denying the rare earth metals that go into chip production. 60 Minutes did an episode on this. Any electronic device depends on rare earth metals including US weapon systems. This is a US National security issue.
@@williamquemuel7824 USA has big resources on its own. And access to even bigger resources in Canada. China might be able to strangle Europe on resources. But China can not strangle USA.
@@hkonhelgesen If you read my main comment, my topic was on exports not resources. China has consumer base of 1.4B versus 367M for America. US exports (Boeing planes, GM&Ford cars, …) will be directly impacted. The EU willl benefit more (Airbus, VW…). Your comment is shortsighted.
We can't wait to buy chineese cars here in Kenya
China already owns Kenya anyway.
possibly they can help with permanent electrification for some part of africa ......
imagine some EV cars for 4,000 dollars
Go ahead, its all yours
Because China is not dependant on oil revenue it could modernise to electric production. The EU is also not an oil producer and therefore should follow the Chinese path before there bribed to stay put in toxic oil.
Germany exports vehicles to China. Does it want chinese market closed?
That math could probably be figured out. Crunch the numbers then make the decision.
Not really, most cars sold in China are built in China.
the Chinese market is the smallest as a share of its economy in world history, that's why the EU has such a huge trade deficit with China. It's market is already closed, even if not for automakers, most of that which is sold by German firms is built in china anyway.
China produces most of it's cars for the domestic market while Germany exports the majority. The term "overcapacity" is just ridiculous, especially when it comes to countries like Germany.
The ones loosing are the US consumers that will have to pay more for a Chinese EV, which are better and cheaper than any of the American made EVs.
China could also reply by imposing export controls on materials needed by US manufacturers in making their own EVs.
History has shown many times that trade wars also lead to armed conflicts in which WE ALL loose!
The ones winning will be Chinese customers…. They will have a lots of evs at very cheap price….it is a win win situation…
@@guyberube6382 Correct, they can purchase small EVs por less than $20,000; They even have good $13,000 EVs!
I don't think so. When the Chinese EVs arrive, I'll still be buying Toyota. I could care less if they show up or not. I won't be paying more or less for them.
@@RajDeelish With the break up of Globalization, you might continue to buy Toyotas, but they will be made, for example, at a factory in Mexico with parts from China, India and Mexico.
Auto manufacturers already share many designs and parts. That why when one model has problems, many other autos hve them too. Underneath, they are the same vehicles! I insist, consumer is being deceived and abused! Greetings from Costa Rica 👍
It's called the world economy freedom of trade lol
Ahh, freedom of trade? Do you know what you're talking about because I dont.
WTO actually has rules... which China doesn't follow
@@firerock9320where is your source? The biggest rule breaker of WTO is actually US. All tariffs against China are violation of WTO rules. But your media never tell u
@@firerock9320 impossing tarriff is obviously againts WTO rules, and you're pointing finger to China.
How about US Inflation Act spent billions to subsidise US company? Isn't that violated WTO rules?
@@araara4746 yes true every country wants their businesses to boom the US, EU they have massive subsidies on inefficient businesses they also disguise these subsidies
Now the Golf can cost even 100 000 Euro. Yay!
In economics, as long as the price of any product is lower than its cost and that product is sold at a loss, that is called overcapacity.
Yellen's ”overcapacity“ does not refer to overcapacity in economics, but to the fact that China's domestic demand is already sufficient, so it must sell abroad, and China's products are so good that other countries are not competitive, she calls this "overcapacity".
If this is the case, then Coca-Cola, McDonald's, and agricultural products (which the U.S. has been asking China to buy) are all overcapacity
The US government doesn't pay Coca-Cola or McDonald's to make products to sell overseas at less than cost to make.
@@firerock9320 BYD and NIO cars are sold for literally 10 times the profit on the EU market than the domestic Chinese market, so what exactly are you talking about?
The US doesn't have a problem when it comes to importing iPhones from China, but cars are another story...
The US will still have an auto industry and Europe won't unless you do exactly the same thing.
The U.S. will need cheap electric cars. Texas will be banning fuel to most of the U.S. by 2030. We're going to need electric everything.
If we can’t build an affordable electric car here in the US we are not fit to call ourselves a superpower.
@@tabithan2978 You don't want to build an affordable electric car if it means no environmental or labour standards
Climate change doesn't care if you can afford a car or not. It has deadlines. The U.S. will not have fuel by 2030. The deal has been made by big oil.
Exactly.
They are flooding the market
To dominate it, and will pay any price to reach that point of monopoly
In my opinion the consumer must Revolt against the Government of EU and US. We want affordable EV Cars. Period.
Sanctions do not help national car industrie.
Japanese car and electronic products from Japan and South Korea were also sanctions by USA. in what situation are these industries in USA now? Not better or even worse. The situation is very easy and they are not investing in more R&D. Much of the profits go to salaries of the top officials and investers. Easy money...
There is zero logic in what you are saying. USA had a perfect electric cars before anybody else in the world. USA does not need Chinese cars. Now that Europe was sleeping and not investing in change, that’s a different question. Maybe you should also impose big taxes on imports from China. Unfortunately all big European concerns long ago outsourced everything and actually massively invested in the Chinese economy. Why are you now explaining?
Asians never complain about excess imports from Europe. However, Europeans are accustomed to living in luxury which is actually very poor in natural resources.
China absolutely does... they ban foreign companies and products all the time.
Instead of complaining try to be competitive.
Germany exports 80% of its vehicles, Japan exports 50% of its vehicles, the U.S. exports 25% of its vehicles...China exports 10% of its vehicles. Western nations: "overcapacity!"
Also, notice how the entire pretense of the discussion went away the more they spoke. This guest started discussing overcapacity, then discussed how he thinks that tariffs are a good thing because they can force Chinese EV companies to set up factories in the E.U. If the U.S. hadn't crippled the WTO dispute mechanism, they would obviously rule against this practice.
China are the ones who crippled the WTO, not the US. The US simply stopped letting china punch the WTO in the face without a commensurate response. Also, none of the countries you mention maintain double digit percentages of their economy to industrial subsidies, these countries' export rates were achieved through genuine market exchange.
Good for rest of the world. We can purchase Chinese EV in a lower price. One thing concerning is the established car manufacturer like GE, VW, Toyota, ford etc..is going to lose its international market to Chinese.
Until they start to make their cars in India.
@@RajDeelish India market is still small regarding its huge population.
Do you even know how automotive companies in China operate???? And that there are dozens of companies, each with a different development model, which compete with each other, and the one that eats its opponents then enters foreign markets, perfectly prepared to conquer with the best model and staff.
The EU asking if the world is getting more protectionist is the most hypocritical statement I've heard all year.
If united sneaks doesn't allow Chinese cars in the united sneaks, China must also ban all united snakes cars in China. The same thing for EU!
@@icu17siberia united sneak is making 400 billion in China.
Tbh, we dont need low quality US cars. their fuel consumption is too high comparing to other car makers.
the EU and US are in decline having nothing to offer.
The EU will do what their Colonial Master tells them to do.
You have no idea what you are talking about, tovarich 😂
@@frankguz55 You must understand that Germany is not a sovereign country.
German foreign and economic policy is decided in Washington, not in Berlin.
Don't forget what the first Secretary General of NATO (Lord Ismay Hastings) said: "NATO is there to keep the Americans in, the Russians out and the Germans down".
@vgstb 🤣🤣🤣🤣🤣🤣🤣🤣🤣 da tovarich, da
How's the weather in st Petersburg? 🤡🤡🤡
@@frankguz55 cope harder, next time Washington "re-calibrates" the German energy prices....
Some 3 weeks ago I've heard DW lamenting about China delivering it's first cargo of 5000 EV to Germany. You were devastated that China has beaten you at your own game. You employ similar tactics with smaller European countries effectively crushing their economies. China had a good teacher in you. They didn't practice what you preach, they practice what you (Germany) have been practicing. .....
The Communist party have no class compared to those of the past who held true wisdom. Alas make them impossible to oppose. Yeah "It is what it is "
You must understand that Germany is not a sovereign country.
German foreign and economic policy is decided in Washington, not in Berlin.
Don't forget what the first Secretary General of NATO (Lord Ismay Hastings) said: "NATO is there to keep the Americans in, the Russians out and the Germans down".
Germany has been occupied by the US since 1945, and today there are still 40 US military basis in Germany.
@@vgstb I understand very well German tactics since Otto Bismarck. And as you are saying Germany is not sovereign country you know very well this is bullsh*t. On the other hand what you will do to smaller countries if Germany had free hand. I'm truly afraid to ask....
@@voyd1507 Don't forget what the first Secretary General of NATO (Lord Ismay Hastings) said: "NATO is there to keep the Americans in, the Russians out and the Germans down". Germany has been occupied by the US since 1945, and today there are still 40 US military basis in Germany.
@@vgstb Remind me who committed atrocities during WWI & WWII on unheard scale.
EU should do the same before we get flooded with Chinese EVs.
Why ? Did china put tariffs on european cars ?
China can sell cars here
Let people decide if they wait to buy chinese cars
Why are u afraid of competition
Bravo, China! 🇨🇳🇨🇳🇨🇳
What is artichoke in Chinese?
If you don't like them, don't buy them...
What he is missing is that the US has a growing population and so can consume things (like cars) as well as produce them. Germany and Europe as a whole must export because the aging population does not consume what it manufactures as a younger population would.
So economise that are export driven like China and Europe must find consumers...But whom? Europe produces expensive high end goods that poorer emerging economies cant afford . The US is growing weary of enforcing the Global Order.
Volkswagen, Peugeot and other European car companies won't let dumping happen.
Germany is against tariff.
France is also against tariff after Xi and Macron's meeting.
You don't know what you are talking ... LOL
Then in reply they will lose their Chinese market, and that’s a significant part of their profits.
European car manufacturers depend heavily on their Chinese operations to generate profits. It is nearly imposible to make money under the current state of affairs in Europe!
Too many benefits and too little productivity!
Top executives at BMW and Volkswagen on Wednesday 8 May warned against imposing EU import duties on electric vehicles from Chinese automakers, saying it could upend the bloc's Green Deal plan and harm EU automakers the import of their cars made in China.
then VW Peugeot should produce good EV with reasonable price to compete!
There are literally acres and acres of land covered with bumper to bumper BYD vehicles adjacent to docks waiting for export....... all waiting for the DOM to be changed on the compliance plate to reflect recent manufacture.
Stop spreading misinformation. Most cars that are stationed in the EU harbors that are waiting for further inland distribution are made by EU, Korean and Japanese car manufacturers. Only 5% of the cars imported in the EU are made by Chinese domestic brands.
@vgstb
...take your time now to read carefully and comprehend the original posting. It's all about EXPORT, and not import !
Got it? That's good !
@@KIA-MIA-POW :)
So are we capitalist or not? 😂
There is nothing wrong with protecting your industries and economies against cheap imports from a foreign adversary constantly trying to undermine your values.
EVs are a loser anyway. Let the market figure this out on it’s own.
The CCP is kicking back a fortune to chinese manufacturers for each car they produce.
My god. Other's inefficiency is China's over capacity.
China 🇨🇳 is promoting BRICS and using it as a dumping ground, a correct term for overcapacity.
China is hurting developing countries with its dumping practices.
- Brazil launches anti-dumping
probes on China after imports soar.
- India also imposes five-year anti-dumping
duty on Chinese products.
Both are BRICS countries.
Yea, and the US dumping cars into the rest of the world since WWII ended is not hurting developing countries' own car brands.
I still remember the US forces Taiwan to buy its meat products where it has a substance that was banned in many countries. Many Taiwanese protested but US has great leverage on Taiwan because it’s always using the donkey and the carrot strategy knowing Taiwan can be bullied because it needs US support.
What is "dumping"? You think China is giving away free stuff? You wouldn't be talking about Chinese cars if there wasn't a demand for it. In a good liberal/free market system, the people decide what's valuable to them and they have the right to access whatever they want.
Looks like China is practicing capitalism better than the west
USA Under Capacity
The guy need to invest in a mic and not use his speaker. I wouldnt use a speaker for my job, why would anyone think this is a great idea for an interview.
Spot on
Such high level economist
Such poor layman technology? 😂
And his English...maybe a mic would make it easier to understand him. How Europeans communicate with each other in their many different Englishes is a mystery. No doubt, there's a great deal of miscommunication.
Likely he couldn't find a decent yet affordable mic that's not made in China.
thank you DW for such in-depth analysis without any confusing clutter around
European union needs to make sure there is at least a capacity to make cars domestically and like 15% domestic production.
If it has to be with tariffs, yes
75% of the German domestic manufactured cars is being exported.
A significant part of that export goes to the US.
It is a good thing that the US government has taken counter measures to re-calibrate the competitiveness of the German car manufacturers versus that of the the US automakers.
Y’all know Germany has massive tariffs on U.S. made cars right?
Is Europe owned by American voter. Europe dont have baallz
In fact, it is impossible for every oil-producing country to truly realise the transformation of clean energy! Only countries that rely on energy imports will attach such importance to new energy investment like China!
Should put tariff on temu.
And force the UPU to stop free shipping for China
That, I agree, no more cheap junk from China, only quality China products should be allowed into the EU market.
@@firerock9320 Yes, have to stop giving them advantages. I mean, why are US taxpayers paying for TEMU shipping, braindead I say.
@@rickjames18 True... how do so say you are so strong and have a space program yet you call yourself "developing" for free trade
@@firerock9320 Because China has been playing the west for fools and unfortunately many in the west fall for such tactics. Plus are systems can be manipulated and are very slow to change which is a problem sometimes.
Why doesnt Germany and europe in general just put 100% tariffs on chinese cars and lets see who wins
All Cars are built to order after receiving advance deposits upfront and full payment before delivery.
American and European cars... yes
Chinese cars... No
Same rules for China
Chinese cars ...Yes
American and European cars...No
Since EVs are not polluting, they should replace the polluting ICE cars.
To make them more affordable, the US & EU should subsidize EVs just like China. Give more subsidy to make them cheaper than EVs from China. Beat them at their own games. 😂😂😂
@@BrandyHeng007 China doesn't build cars after advanced deposits, that is why they have graveyards of EVs expanding Kilometers and are dumping unsold cars at foreign ports around the world. China builds to collect government subsides.
European too many lazy people, 9-5-4 working culture.
The Chinese work 9-6, 6 days a week.
Why do cars cost any money I dont understand we get ripped off so bad in the US
Since EVs are not polluting, they should replace the polluting ICE cars.
To make them more affordable, the US & EU should subsidize EVs just like China. Give more subsidy to make them cheaper than EVs from China. Beat them at their own games. 😂😂😂
Tesla cars are not that expensive.
The quality of the US made Tesla is however not that good.
@@Liboch No, the US and EU should make cars in India and Mexico.
Guess what? The US isn't going to lay down economically for any other state. Would you?
China should export many more cars to Germany to relieve the overcapacity. Germany sells many more cars in China than in their own country. Or, Germany car maker should make room for china capacity at least in Chinese market.
This is exactly why the German car makers are against implementation of EU import tariffs on Chinese made cars.
Also a lot of German car manufacturers make cars in China that are exported to the EU.
but Mercedes BMW export most of their cars......to China. isn't that overcapacity?
If this is the basis of the argument of China's "overcapacity" in EVs, then Germany and Japan has massive overcapacity for decades... you have seen their ports filled with cars and these cars have been transported to many countries for years and years.
It is really interesting that the USA and Europe have not complained about these overcapacities... ever !
What a load of lies.
Tariffs are hardly protectionist when China is not competing in a traditional free market sense. The Chinese offer better prices not because they are more efficient, but because the CCP manipulates its currency to make exports more competitive (transferring wealth from importers which is usually the household sector to exporters), sets the interest rate of deposits and loans artificially low (transferring wealth from savers to borrowers), and a whole of host of direct and indirect (e.g., subsided land prices, no environmental protection, little to no workers rights, absent social safety net, etc.) subsidies. The CCP is NOT competing in the traditional free-market sense; it wants to export its way to wealth by impoverishing and weakening the West in the long-run. Thankfully, BOTH Trump and Biden realize this, and are trying to level the playing field to prevent another hallowing out of the US's industrial base, leading to more unemployment. Once the CCP decides to play by the rules of a market economy, then we can have an honest discussion about competition.
Had the US not de industrialized this wouldn't be as much of an issue. There's no introspection just blaming everything on the Chinese.
CCP cant manipulate Chinese currency as this washington fabricated imaginary entity does not exist and as such cant drive policy in China. CPC however does less currency manipulation and less subsidies than the US regime so yes tariffs are protectionist policies and pretending its not is just ridiculous.
1 EUR = 7.85353 CNY
Euro to Chinese Yuan Renminbi exchange rate has had it's ups and downs, but when seen on the longer term (10 years) the exchange rate has been quite stable (fluctuating around 1:7.5)
This isn't really about overcapacity. It's more protectionism from the US, since these cheap state sponsored chinese goods would hurt/destroy the domestic industries, which has been heavily subsidized by the Biden administration. These domestic industries are supposed to generate jobs and lively hood but with the introduction of these cheap state sponsored chinese good they are at a grave peril of job loss and possible closure, enter the tariffs to protect these industries. Most likely EU would do the same to protect its industries.
Poorly built Chinese cars won't pass western safety standards.
If so, why don't the EU lets Chinese EV sales in your country and let your citizen judges 😂😂😂
Are you joking? China EV quality even surpasses Tesla...it's based on my experience and will consider one as my first EV...
What is the test result?
Dozens of Chinese EV models scored five stars in Euro NCAP safety standard
Your bias doesn't reflect reality and the opinions of people the use Chinese EV vehicles
DW is a US public broadcast service.
The last 30 years bore witness for the first time in 250 years a non-western player beat it at its own game. Japan almost did too in the 80s but unlike it, China will not cave to pressure and is a much more omnipresent and sizable player.
Trust me, you don't want to import China EVs (exploding vehicles)
"be a big burden on transatlantic cooperation." - We in the US are tired of trying to convince Europe on this, it's not like you guys don't know better.
this "expert" talked all about politics, nothing economics.
The US lost dismally!! Admit, move on, learn and reinvent. In fact you are becoming slowly irrelevant in the global discourse.
If Biden consulted with Europe on this it would take Europe over a year to come to a conclusion. Please.
Only 20% or less cars on roads are EVs. Don't ban them, not until all those polluted vehicles are replaced.
Another made-up term... overcapacity
The world has become a board game in which:
USA is playing Checkers, thinking 1 move ahead.
Russia is playing Chess, thinking 5 moves ahead.
China is playing Go (Weiqi 围棋), thinking 10 moves ahead.
How US tariffs on Chinese cars will affect Europe?
Ans: Unless Europe is part of USA...nothing?
Imagine COMPLAINING ABOUT HAVING TOO MUCH STUFF?? Are you insane.
Overstock of BMW, AUDI and MERCEDES
No matter how hard DW is pushing the Chinese Overcapacity argument, it is unlikely for Germany to support any EV tariffs on Chinese EV. German cars has 17% market share in China while China only have 3% market share in Germany.
Why tariffs ? What about free trade? That seems to apply ONLY when Americans and Europeans have better goods, when others win, it doesn't apply anymore. And then they are surprised that no one takes them seriously anymore
And the puppet just can't wait to follow orders.
Let's be honest, decades ago the US public was sold the idea that opening trade with China increase US manufacturing with a huge new market as well as encourage democratic reforms and improve human rights in China. Instead of isolating them we make them play by the same trading rules as everyone else and strengthen the forces of reform. Fast forward to now and one of the few things Democrats and Republicans can agree on is that we've lost manufacturing jobs and China isn't any closer to democratic reform than is was under Mao. The debate isn't about whether the US should reduce Chinese imports, the debate in the US is how much and how fast.
In the past, free trade was discussed because the United States could earn huge profits, but now it is no longer discussed because the United States cannot compete. In the final analysis, it is still interests and has nothing to do with freedom and democracy.
The EU needs 100% tariff also.
The comments have much more news value than DW itself. So just reading the comments to save time and not been brainwashed.