The US also heavily subsidizes its industries. It is just not done in a smart way. US money goes mainly into increasing profits of already rich companies, so they have less incentive to innovate and create new products. China spreads its money across the whole industry, so new companies will benefit and create a complete supply chain.

A lot of Chinese money just goes to zombie SOEs, but are really funding some official’s villa and foreign education for their kid. Chinese money can be just as dumb as American money. There were a ton of scammy EV companies selling basically golf carts when China first started subsidizing EV development and sales. It took around half a decade to get rid of those.

Nothing is perfect, but Chinese strategy is smarter overall. They achieve a lot with less money.

I disagree. The Chinese are just able to leverage a lot of what would have been disposable income for normal working people. In fact, this why their demographic decline is going to be especially painful.

BYD is nominally a private company. What you're really getting at is that governments can subsidize industries to give their domestic companies an unfair advantage, and China does that aggressively.

Other countries could do the same thing or punish China for it via tariffs etc., but doing nothing seems like a bad idea.

We've had subsidies for EVs in the US for over a decade now. US governments have bailed out automakers in the past. Every election year, politicians parade over car making states with promises to win votes.

US government has done as much as it can to protect ICE cars, ICE workers, ICE unions, oil companies (US is #1 oil producing country).

I think what you're trying to say is that Chin has done a better job subsidizing its EV industry than the US has and China has more incentives to move towards an EV future.

> We've had subsidies for EVs in the US for over a decade now.

For EVs generally regardless of where the carmaker is headquartered.

> US governments have bailed out automakers in the past.

And were justly criticized for it even domestically.

> US government has done as much as it can to protect ICE cars, ICE workers, ICE unions, oil companies (US is #1 oil producing country).

Whataboutism. Two wrongs don't make a right.

> I think what you're trying to say is that Chin has done a better job subsidizing its EV industry than the US has and China has more incentives to move towards an EV future.

EV incentives work similar to what the US has. You buy an EV and you get a tax credit, regardless of whether it's from GM or Hyundai. Cheating is when the subsidies are only available to domestic companies.

You’re just bringing up random stuff now.

Very simplistic view. US has also given billions in subsidies to US ev makers and protectionism. One reason Tesla is so big on US is China is not allowed to enter.