Comments by "Winston Smith" (@kryts27) on "Unbelievable! Evergrande EVs Report a 100 Million Yuan Loss per Unit, the Largest in History" video.
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A price reduction war means negative profits for auto EV car makers in China for each car sold. This adds up to real debt, as the EV companies must borrow to keep manufacturing. Worse, there is no end in sight in this madness .No more good times will come whereby making EVs will go back into the black again to reverse the hedonistic level of debt, especially with the private money economy of China collapsed and no productivity growth to reverse it. Outside China in First World economies like the EU and the US, trade protectionism will be enacted to protect their own auto manufacturers, making profitable export lead growth of badly built China EVs, more and more unlikely. Like everything in China, the government ultimately owns the debt, but unlike private enterprise, itself cannot go into liquidation. The end result for China is a zombie economy and massive government debt to itself. Foreign investors will treat China as an untouchable sphere, like a plague carrying patient, as they will not receive economic growth benefits, The economy of China remains a cold corpse under Xi Jinping and the CCP, and the world eventualy passes it by and advances without China, leaving it irreversibly further and further behind. This is the North Korea model of poverty stagnation. The cost of doing business with a totalitarian government in charge.
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