Comments by "Louis Giokas" (@louisgiokas2206) on "China's Automobile Industry Is OVER! Famous Foreign Auto Brands Flee From China" video.

It seems that many companies are moving to the US, among other places. I recently bought three pieces of battery powered lawn tools of a Chinese company. Two of the three were made in Vietnam. I looked at the company website and found they were also opening up a factory in the US. The US has cheaper energy than Europe, so many energy and hydrocarbon-based industries from countries like Germany are relocating plants to the US. Industrial plant construction in the US is off the charts. Add to that the advantage that the US has in natural resources and agriculture, and China is toast. Another way that China hurts itself is in not allowing foreign companies to create wholly owned subsidiaries in China. This is madness and is typical of developing countries. By the way, India does this too, and it that holds them back. The only things in their favor are a large potential market and inexpensive labor. This is very much like China was. Their big advantage is that they do have a democratic rule of law-based society, so they will do better. Back to China, this restriction on foreign ownership makes it easier for foreign companies to move out. They only have half ownership (actually only up to 49%, I believe) and thus when they move, they only have half the exposure. The local Chinse company is left holding the bag. China created this mess for themselves. Add to that Xi's inconsistency in policy and his aggressiveness towards the west, his best market, and you set the stage for disaster.
79
@simransidhu617 I assume that you mean he is good for everyone else but the Chinese. My invest advisor was always saying he hoped that Xi would get his third term so that he would tank the Chinese economy. He is very wise.
10
@mats8038 The issue with pollution is a sad adjunct to the whole globalization thing. The EU is starting to recognize this in regard to climate change with a carbon duty on foreign goods. On the other hand, the situation you mentioned is interesting. Several years ago, I was in a meeting where a Chinese manufacturer asked a prospective client whether he wanted filtration in the factory for health reasons for the workers. The answer was no. What is required by law in the US was optional in China. If you look at the processes and pollution used in China for refining rare earth metals for example, it will literally scare and disgust you. If you look at the food safety situation in China, you would be never eat there. I wonder if the situations you talk about are more the result of not paying sufficient bribes.
1
@Nh-ok3sg Typically EV. I believe one large brand is moving to Thailand (I think). I have also heard that a Vietnamese brand is building an EV factory in the US. I don't think you will see too many ICE brands moving. That market is already crowded.
1
JackSmith-mk1ru And China imports from all those countries. Where do you think the parts for iPhones come from. In dollar value almost all are imported. The supply chains companies have set up are complex. They are only made possible by free and open trade which is very inexpensive. Who set up that order? I'll let you answer that. It might shed some light on how informed you are.
1