Comments by "tooltalk" (@tooltalk) on "Xi Jinping Wins Viktor Orban's Support on Trade and Investment" video.

China's export of EVs is subsidized by the gov't. The German auto industry is not.
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@LivingLonger Sure, and coercing EV OEMs to use local components is in violation of China's obligation. And WSJ points out -- Power Play: How China-Owned Volvo Avoids Beijing’s Battery Rules Car maker is allowed to use high-end foreign technology, while rivals are squeezed into buying local, Trefor Moss, May 17, 2018: ... China requires auto makers to use batteries from one of its approved suppliers if they want to be cleared to mass-produce electric cars and plug-in hybrids and to qualify for subsidies. These suppliers are all Chinese, so such global leaders as South Korea’s LG Chem Ltd and Japan’s Panasonic Corp. are excluded.
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@LivingLonger China's EV subsidies have been around since 2009 -- renewed/extended every 3-4 years. Since Xi's Make-China-Great-Again 2025 (aka, Made-In-China 2025), they have discriminated all foreign battery maker to protect local makers, such as BYD/CATL. Tesla's first Long Range model with LG Chem's NCM batteries for instance didn't qualify for any subsidy in China until the subsidy was reduced in 2020.
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@LivingLonger : (continued) Foreign batteries aren’t officially banned in China, but auto executives say that since 2016 they have been warned by government officials that they must use Chinese batteries in their China-built cars, or face repercussions. That has forced them to spend millions of dollars to redesign cars to work with inferior Chinese batteries, they say. ... “We want to comply, and we have to comply,” said one executive with a foreign car maker. “There’s no other option.” China's tactic of forcing local content requirement is in violation of China's WTO obligation. That is precisely the basis of the EU's antisubsidy probe against China's EVs launched last Oct and that's partly what motivated the US IRA in 2022. Quite laughably, China recently filed a WTO dispute accusing the US of doing what China was illegally doing wrt subsidies.
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@LivingLonger Sure, China changed from "direct purchase subsidies" to "tax credit." The US's EV subsidies method was opposite -- it was "tax credit" until last year and now changed to "direct purchase model." China's new tax credit subsidies is expected to cost the Chinese gov't about $72B in consumer subsidies, which is still a small part of the Chinese gov't illegal export subsidies. According to the EU's notice of antisubsidy in Oct: ... In particular, the Commission has found evidence, among others, of various grants, provision of loans, export credits and credit lines provided by State-owned banks or bonds underwritten by State-owned banks and other financial institutions at preferential terms, provision of preferential export insurance; income tax reductions and exemptions, dividend tax exemption, import and export tax rebates; VAT exemptions and rebates; and government provision of goods (such as raw and input materials as well as components) and services for less than adequate remuneration. ...
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@LivingLonger reposting: ... You are just repeating my comment on other thread. Sure, China changed from "direct purchase subsidies" to "tax credit." The US's did the opposite -- it was "tax credit" until last year and now changed to "direct purchase" model. China's new tax credit subsidies is expected to cost the Chinese gov't about $72B in consumer subsidies, which is still a small part of the Chinese gov't illegal export subsidies. China's EV subsidies including consumer/industrial is estimated to be over $40B last year.
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@LivingLonger : And according to EU Commission's Notice of Antisubisdy Probe last year: ... In particular, the Commission has found evidence, among others, of various grants, provision of loans, export credits and credit lines provided by State-owned banks or bonds underwritten by State-owned banks and other financial institutions at preferential terms, provision of preferential export insurance; income tax reductions and exemptions, dividend tax exemption, import and export tax rebates; VAT exemptions and rebates; and government provision of goods (such as raw and input materials as well as components) and services for less than adequate remuneration. ...
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@LivingLonger reposting: And according to EU Commission's Notice of Antisubisdy Probe last year: ... In particular, the Commission has found evidence, among others, of various grants, provision of loans, export credits and credit lines provided by State-owned banks or bonds underwritten by State-owned banks and other financial institutions at preferential terms, provision of preferential export insurance; income tax reductions and exemptions, dividend tax exemption, import and export tax rebates; VAT exemptions and rebates; and government provision of goods (such as raw and input materials as well as components) and ...
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@LivingLonger The excerpt from the WSJ is a pretty concrete example of LCR which is a violation of China's WTO obligation. No worries, my oomaoo friend, this is all too late. Biden is going to unlease his 100+% import duties next week; the EU is likewise announcing 60+%-70+%. The fact of your ignorance of trade, geopolitics isn't going to stop anything now.
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@amirrezza-b5v : China subsidizes EV industry. Surce: Bloomberg
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@amirrezza-b5v You are certifiably dumb. Source: Bloomberg.
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@LivingLonger You are as dumb as you sound. Tax breaks are subsidies. reposting: The EU Commission in Oct 2023: ... In particular, the Commission has found evidence, among others, of various grants, provision of loans, export credits and credit lines provided by State-owned banks or bonds underwritten by State-owned banks and other financial institutions at preferential terms, provision of preferential export insurance; income tax reductions and exemptions, dividend tax exemption, import and export tax rebates; VAT exemptions and rebates; and government provision of goods (such as raw and input materials as well as components) and services for less than adequate remuneration. ...
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Hungary is now a vassal sate of the imperial CCP.
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