CHINA Businesses Imploding as 30% Make Losses as Overcapacity Drives Down Prices & Profits

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In this video I look at the very concerning issue of OVERCAPACITY in China which is resulting in Chinese Businesses FLOODING Global markets with products which in turn is driving prices DOWN and resulting in both Chinese & other companies making LOSSES. Chinese businesses are able to withstand these losses as they are able to access CHEAP DEBT from Chinese banks however this is very bad news for both the Chinese Economy and the Global Economy.
For specific details please check out the CHAPTER list below.
Thanks for watching and please LIKE and SUBSCRIBE.
Chapters:
0:00 Intro
3:55 INDUSTRIAL PROFITS
8:27 PRODUCER PRICES
11:55 EXPORTS
14:41 CHINA
16:45 INFLATION
18:45 YUAN
21:40 FITCH
24:26 SUMMARY & CONCLUSION
#china
#globalrecession
#chineseyuan
#deflation
#inflation
#technology
#wheat
#interestrates
#india
#Belt&Road
#globalrecession
#globalfinancialcrisis
#russia
#Evergrande
#China
#Recession
#Zhenro
#Bonds

[@unfixablegop]

Joe avoided going there, but this sounds like large import taxes on Chinese products would make a lot of sense.

[@advancetotabletop5328]

Revenue tariffs! Have China pay the government, rather than the USA taxpayer!

[@TenthCrane2788]

There may be an announcement this week on higher tariffs on Chinese EV's.

[@ronblack7870]

yup biden popped the balloon today and imposed 100% tariffs on ev's and 50% on batteries and solar cells go up to 25% .

[@zacksmith5644]

@@TenthCrane2788 yeah and usa is insecure

[@zacksmith5644]

@@advancetotabletop5328 awww doggy scared of China

[@bluewater454]

I have heard that since the Covid shutdowns, manufacturing has migrated away from the Chinese economy in a major way. Neighboring countries like Taiwan and Vietnam are the beneficiaries.

[@jamesodell3064]

Also Mexico.

[@fdm2155]

And India and Myanmar...

[@mailbox3385]

That is a good news

[@Badco1948]

Generally, the US is reshoring manufacturing. Covid taught both the US and the EU that China was an unreliable manufacturing pardner. Additionally, mainland China's requirements on Western companies to locate there are onerous and a national security problem for the Western governments involved. It just makes a lot of sense from a number of viewpoints for Western governments to encourage reshoring manufacturing with a goal toward shorter and more secure supply chains. In short, China cannot continue to be the world's manufacturer and Western democracies chief antagonist.

[@DK-ev9dg]

Taiwan is not a country. Most Vietnamese and Mexican companies are owned by Chinese

[@drunkenplasmid5982]

Joe, your channel is really great for macro-economically inept peole like me :D . Thanks and keep up the great work.

[@DK-ev9dg]

He is making you more dumber day by day

[@bdcochran01]

50 years ago, I am in the PRC. It is a Stalinistic, dictated economy. State policy controls . . . with no conception of supply and demand. In a sense, the country is already bankrupt, but state policy can kick problems down the road. Then again, capitalism has its faults . . . tax policies, governmental policies . . that can also kick problems down the road. Here are just a few problems that the PRC will have to face some day or collapse . . . and the current controlling people can not address: 1. For decades, loans have been made to state enterprises that can never be repaid. Massive amounts. 2. The meagre retirement system is based upon current payments of benefits and income, not long term payment of benefits which would require massive reserves, like the US SS system, but worse. 3. The encouragement of investments by the public into phantom assets, like unconstructed houses. 4. The encouragement of debt like mortgages on unbuilt homes. The homes will never be built. The loans cannot be discharged in bankruptcy and when not paid, there are public sanctions against the borrower.

[@geoffgill5334]

Well said 👏 Joe Blogs caliber😊

[@almarn]

Pollution, water resources are limited and polluted, demography is in the tank a distant consequence of one child policy with 40 millions men more than women (India is worse...), food resources...China is the biggest importer in the world...grain, soja, pork, beef, wheat China will be the country most affected by climate changes and soil erosion in the big central area of China (where are living 400 millions of people) is progressing rapidly. Big cities have been erected on land gained to the sea...

[@heww3960]

China is mainly a fascist country, since it puts the state first and wants control over it is citizens. That is fascism (not communism). West is going down the same path with fascism/woke/feminism. We had some real liberal movement (today socalled liberal movement is the opposite to liberal, it is conservatism and fascism) in the beginning of the democracy and after the ww2, but soon after that the fascist started to gain power again, in form a feminism etc. Fascist is natural for leaders, since after all people that do not want to control other people do normally dont get into power positions. Democracy is ruined by corruption, and it do not really matter who you vote for, all you get is careerist that would sell out the country and its people without a thinking about it.

[@nick.v.g]

especially the retirement part will be a problem for china they are the fastest aging population in the world. and they did not save up to give all those people a decent income when they retire. so elderly will need the help of there children and grandchildren but with the 1 child policy there is 1 ore 2 persons who need to take care of multiple relatives. in my country of almost 18million people we have at the moment more then 1500bilion euros saved up in the retirement system that is invested while it is there so it grows year on year but here we also have an aging pop and it is not sure that amount is big in of

[@yurinator4411]

How old were you 50 years ago?

[@aceofspades1217]

6:46 is describing what is called in anti trust predatory pricing. Which is kind of what Amazon has been accused of as well as others which is to sell something for unprofitably low price for the purpose of destroying a less capitalized competitor especially and upstart.

[@billytheweasel]

Walmart famously, which is why i boycott them

[@albione8001]

True. But Amazon is not a state-owned or state-funded firm, if I remember correctly. And it's not affected by a problem of overcapacity..

[@Nova2Yung]

@@albione8001 spot on! , i aint seen joe biden pump trillions into amazon but shareholders

[@merumwidt3120]

This is what hefty tariffs are for. Also, I continue to be disappointed that the rest of the world steadfastly refuses to demand China be stripped of its "developing nation" designation at the WTO. Developing countries don't have 600 ship navies containing 3 aircraft carriers.

[@concinnus]

More specifically, it's called dumping.

[@addict8229]

This is exactly why the USA is increasing tariffs on Chinese imports. It helps protect companies from the overcapacity created by China. This will reduce demand which leads to additional pressure on companies in China and should accelerate the consolidation of the related Chinese markets.

[@johnsuni6224]

Obamas Trade Pacific Pact had us on a path to remove tariffs for pacific trading partners until Trump withdrew us from it--saving untold millions manifacturing jobs. If Buden gets a 2nd term expect him to finish the job of removing millions of high paying blue collar jobs. Trump protected US steel against low cost dumping of steel in US, then in 2020 they endorsed biden and got bought by nippon. Trump is only potus in my lifetime to rabidly protect us manufacturing, but those companies literally bite the helping hand to their own demise. These crooked politicians are making millions carving up US like a christnas turkey. Astonishingly these companies EAGERLY turn on their lone defender (to virtue signal) to their own demise. We are completely fugged.

[@fastpistonx]

You've swallowed the narrative. China has a huge domestic market so there's no "overproduction". China has LOCAL fast quality controlled supply chains for batteries, batteries manufacturing, refining and processing of metals, local huge factories of electrical motors. It has huge local supply chains for ore shipping and processing of lithium, steel, aluminum, cobalt and copper. It has a dedicated hard working work force. China products are very innovative, especially in battery manufacturing, recycling. It's got cutting edge auto control technology. Focus of Europe should be on competing instead of whining.

[@bluerisk]

@@fastpistonx Chinese products are inferior crap.

[@Kratatch]

EU has done the same.

[@Kratatch]

@@fastpistonx The chinese do not buy because they can not afford it.

[@ar4122]

I appreciate your insight. You are my trusted soutce

[@shannonnewman3091]

Yep!

[@ayayay001]

Here in Brazil, up to December I've only heard that GWM existed, but nothing about selling cars here. But since January it's BYD this, BYD that, there are ads, Tv segments dedicated to the brand, Beijing (or Shanghai idk) car show etc. Sprung out of nowhere and got tired of it already

[@mrnobody3161]

They're Junk Vehicles. Warn EVERYONE!

[@unconventionalideas5683]

Apparently they light on fire and have suspension collapse issues.

[@mariusverwey2125]

BYD came into South Africa this month....the Chinese are coming!

[@bobwallace9753]

EV sales have now exceeded 50% of all new car sales in China and China manufacturers are opening new markets. They are essentially blocked out of the US by high tariffs which protect US manufacturers but South America and Africa are open. Australia is buying a lot of Chinese EVs.

[@Vikingpoints]

BYD here in Mexico isn’t selling anything. I haven’t seen one on the road. Never see anyone in the dealership either.

[@SirOddnerd]

China's electric vehicles certainly have exploded lol

[@paulhollier6382]

You should at least offer some butter & a Band-Aid, to go with THAT burn!

[@Hugo-vz3eu]

Bro the footage out of china is crazy, who the fuck would want to drive that

[@Cookiedogs]

-100 social credit

[@Jaysqualityparts]

Junk

[@fdm2155]

Yeah, brand new cars catching fire while driving down the road, while parked and potentially a death trap in a collision because doors jam AND car catches fire. 😲

[@HP3.14]

9:32 Interesting facts about Norway. Norway has the most EVs in the world, but new statistics show that gasoline consumption has only marginally decreased. It's because they use the EV as a second car for shorter distances only.

[@dgillies5420]

Short distance trips are 90% of trips, normally ...

[@slopedarmor]

Source? But makes sense since bevs are only popular there since a few years and cars can last 30 years i think most vehicles on the road there are not bev yet. I think using the ev as a second car is more of an american thing and not so much in norway

[@caedom21]

Joe is my geoeconomic risk analysis Pokemon. I choose you!

[@ItsaRomethingeveryday]

Good work Joe 👍❤

[@mrw9277]

All sharp as always...good job joe...👍👍

[@chanakya_nan]

I really liked the charts and data points presentation!

[@drstrangelove4998]

Always worth watching, thanks JB 👍🏻

[@asan1050]

Thanks for posting this video

[@ripperrouge5985]

Makes sence why winnie is on the move around euro.

[@ulfosterberg9116]

One more time, but in English please.

[@sergeykish]

​@@ulfosterberg9116Xi Jinping tours EU countries

[@mikloscsuvar6097]

​@@sergeykishHe had already bought my prime minister.

[@ripperrouge5985]

@@mikloscsuvar6097 you Serbian?

[@ripperrouge5985]

@sergeykish when he needs to sell ev

[@kristinfrostlazerbeams]

I wonder, was there any decent* electric car innovation in China's manufacturing before Tesla built their plants there? (* I am using that word with leniency.) I am curious because China's manufacturing prefers to save money on research and development by just taking prioritized information from competitors. Some would call that tactic stealing, but not the Chinese government who wants to ride this worldwide trade train for benefits but also refuses to abide by the rules that make the train functional. It's like the CCP takes the vehicle apart while the big, nice train is in motion. Someone else will take the time and their own money to repair any damage because they don't want to crash. If people cannot keep the train in working condition, why let them ride? Order and competency is destroyed when people go into free for all mode. Lol

[@JustinTimeEnglishClip]

Great information. I love your detailed work, thanks 🙂

[@DK-ev9dg]

He is overclever

[@BrandyHeng007]

40 US banks reporting security losses 50% greater than their equity capital because of the rise in interest rates since the end of last year, leading to another banking crisis. 30 days count down to collapse.

[@Fubar2024]

Thank you!

[@luminyam6145]

Excellent video, thank you.

[@PeanutsDadForever]

Thank you for another excellent video!

[@keithdow8327]

Thanks!

[@EdgyNumber1]

Problem is Chinese EV are not only engineered/built badly, they're objectively unsafe. Special note subsidies are based on numbers produced, not materials going in. EV waste is ridiculous... fields and field of abandoned vehicles!!!!

[@michelleagnew8780]

Another excellent video! Thank you Joe for making easily consumable content.

[@lhaaa1059]

... Not to mention the lower quality and safety of Chinese products. We bought replacement Chinese for Black & Decker leaf blower batteries - Crap! Batteries for Chinese electric bikes are shown on the news catching fire. And same for Chinese EV's - catching fire or safety equipment not functioning.

[@chillxxx241]

I think it is becoming evident that Chinese BYD didn’t really sell those EV’s, they just moved them to European parking lots.

[@DK-ev9dg]

Loser, they make them to export to Europe.

[@unconventionalideas5683]

That and they sold them to the government and to parking lots in China.

[@zurielsss]

They also can't sell if they don't pass the safety standards for the EU - and in order to improve safety they need to upgrade materials used which would increase costs and prices - making the prices in par with European manufacturers

[@zacksmith5644]

Provide proof

[@zacksmith5644]

​@@zurielsssthen where is your proof

[@michaelpierson1534]

Too bad for China... so sad... ;-)

[@DK-ev9dg]

Mind your own business

[@eirikjontvedt773]

Yes, very bigly bad.. i would walk than buy a car from china. They support ruzzia - a disgrace.

[@bathhatingcat8626]

@@DK-ev9dg mind your own cope

[@DK-ev9dg]

@@bathhatingcat8626 your miserable country can't compete with China in any aspect. Too bad for your country. Corrupt leaders are ruining your country

[@benfowler1134]

@@DK-ev9dg touchy touchy!

[@Alphasig336]

BYD numbers are way overstated there are parking lots and fields of NEW Electric cars that they claim to have sold.

[@katiehettinger7857]

Chinese housing companies did the same with the apartment buildings and we saw how that worked out.

[@paulturner956]

Who do we trust? Or believe I remember a certain android company (cough Samsung) would book smart phones as sold even though the cell phone companies hadn’t sold them, eventually they got busted, Is the same practice happening between manufacturers and dealers of EVs here, only time will tell.

[@zacksmith5644]

Ahhh ok prove it What are the NUMBERS?? Which brand ? How many cars sold vs burned ? Out of millions of EV's some do fail & catch fire and all you show are those. But stats prove ICE or Hybrids burn FAR MORE. Fires per 100,000 miles Hybrids 3,200 ICE 1250 BEV just 21 This channels sounding more & more like a protectionist US Auto industry shill rather than an expose of chinese evs

[@zacksmith5644]

​@@katiehettinger7857 ok prove it

[@Gentlman_Gaming]

BYD padded their sales.

[@zacksmith5644]

And u have proof of that ?

[@plants2plasticplasticjars161]

Nice report Very accurately done

[@jesdakosol1797]

Tariffs from the West will make Xi to think twice😊

[@petercampbell2774]

Yep. Biden just announced an increase in tariff on Chinese EVs to 100%, in effect doubling their cost to consumers.

[@katiehettinger7857]

You don't understand you ends up paying in the end.

[@matsmcmats]

​@@katiehettinger7857yeah, having no car manufacturing in Europe because of china subsidies is a great idea. 😂

[@fastpistonx]

Tariffs never work. It just means buyers pay much more and local manufacturers get lazy, do not innovate and fall further behind. If local manufacturers were competitive, tariffs would not be needed!!

[@matsmcmats]

@@fastpistonx um, as if there is no competition among all the European, American, Japanese, and south Korean car manufacturers, you absolute clown.

[@SamHamwich690]

I watch your videos everyday. And I just want to say thank you for doing so

[@paulcampbell6316]

Worldwide Redundancies!

[@Joaodocaminhao0234]

Thank you

[@davidangeron3365]

So, #Joe, the over capacity has created "dumping" prices for low-quality "dumpable" exports!!! In fact there is a saying 'Cheap thing not good, and, good thing not cheap!!!"

[@philjameson292]

Id like to see how many EVs are actually sold in China and not just stockpiled in fields etc

[@susancooper7701]

BYD "SOLD" cars to CCP owned "businesses" and licensed them to "sell more" but in realty most of those vehicles went directly to storage locations never to be actually used on the roads.

[@amunra5330]

Er…EVs in china are everywhere. Not sure where you got your information but Chinese are buying EV cars over German made cars.

[@susancooper7701]

@@amunra5330 There are dozens of videos SHOWING massive storage facilities with NEW licensed EV parked there. Many have weeds growing to the height of the vehicle windows.

[@zacksmith5644]

Provide proof Which chinese ev ? Which model ? Failure %age ? That's easy . Why don't u show ncap test results . That will determine if car is unsafe or not .

[@zacksmith5644]

​@@susancooper7701prove it

[@susancooper7701]

@@zacksmith5644 kzbin.info/www/bejne/d3_bl4Kjf6yYfMU

[@Hugebear222]

Keep up the good work Joe. Can't wait for your next video. You always hit the right topics and right on point. Thanks.

[@kevinpratt-ge5ye]

Great show, sir! 😊

[@jukkakopol7355]

European harbours are full of chinese electric cars some of those are lying there over year.

[@tommyguyishere]

They have no business plan that is practical. It is all funded by the government to show production numbers and have people working. No real rhyme to reason. Just a narrative they claim to be proud of. 444🤡’s

[@katiehettinger7857]

Do you know why there are no buyers?

[@HP3.14]

@@katiehettinger7857 EV ownership has become too much hassle and more expensive to own than an ICE. An owner survey shows that 80% of EV owners will buy an ICE car instead of an EV.

[@jukkakopol7355]

@@katiehettinger7857 Chinese dumping their overflow to Europe there are no markets of those crap vehicles. In many cases europeans prefer quality over price.

[@vincentyeo88]

Even if you're lucky to receive a giveaway car, you drive at your own risk.

[@MonBilly78]

Chinese EVs are much more expensive in Europe than in China. They want good margins to compensate for low prices in China. They are soaking us!

[@user-yt6de9mn3y]

Don’t buy a Chinese car or a Chinese anything, if you can avoid it.

[@theairstig9164]

@@user-yt6de9mn3ythat is a long list

[@ryelor123]

That's probably due to import tariffs. Fuel is expensive in Europe too but that's not the fault of the oil companies.

[@fastpistonx]

Europe has higher taxes, costlier middlemen. Same with just about anything that's imported from abroad.

[@fastpistonx]

​@@user-yt6de9mn3yWhy?

[@guiwhiz]

One element of the over-production of EV that Joe doesn't mention is that another thing it does to the market is a reduction in quality of the product. In order to compete on price with the heavily subsidized Chinese manufacturer base the other manufacturers are tempted to 'cut corners' and 'reduce features' to bring the cost of manufacture down. So the consumers loses in that perspective as well.

[@annamaria-pv1fw]

thx

[@NoelBarry-om9ms]

I'm late on scene here, Australia is negotiating a free trade deal with India, no tariffs each way and India expecting to have a population of people under 35 yo surpassing the Chinese birth rate this is a win win for both countries, when China slapped huge tariffs on Aussie exports, wine, barley ect, we rapidly pivoted to other markets as the free trade were already been negotiated.when Britain did Brexit, we are at the front table of the EU before the balloon went up although we got into a shit fight with the french wine industry over naming rights about labelling. Don't know if that got resolved or what. But autocratic regimes always bomb out in the end because of a one state dogma. There are just not flexible. Yet i see a problem here, a nation with a population of 25 million i Don't think we have the employment capacity to meet trade agreements, in my game the rule was never over reach. But as usual Joe , you're spot on. Cheers.

[@paladro]

currency manipulation, product dumping, overly dependent on food and energy imports... ick, i guess this pooh bears great work )) imagine the mess all these battery packs will make, when they fail in 5-6 years.

[@sdrown212]

With the downfall of China's economy, will they be able to afford to invade Taiwan and keep up their aggression in the Chins Sea ?

[@willc1294]

Better to invade Australia for the resources tbh

[@bobwallace9753]

Most likely China will postpone their expansion plans as any sort of aggressive behavior toward another country could greatly hurt their export revenue. But China plays a long game. The danger might just be pushed off further into the future.

[@katiehettinger7857]

China can't afford to piss off their major trading partners.

[@hillaryclinton1314]

For those not remembering.. the great depression was triggered by usa overproduction, inventory glut, then discounts and fired employees, and diwn we went

[@daniellarson3068]

I was taught in high school that it was overproduction and over-speculation. There always seems to be a lot of the speculation thing.

[@MrGchernetz]

Love your information. I hope Goverments are listening

[@albwilso9]

Yeah, I think that FORD and GM has to learn the law of supply and demand too!!!!

[@user-zc2hk3cs6v]

The rough thing about being a renewable or EV manufacturer, or in the supply chain is they are deflationary by nature. They are pieces of electrical tech and therefore technology improvements, manufacturing improvements, market saturation, all ad together to put pressure on pricing Add to this the long and getting longer life spans of this equipment as well as the fact that you can recycle the most important commodities out of the equipment at the end of life adds pressure to pricing.

[@1MyNickname1]

This is the time where import tolls are important, as it protects you home market from businesses with unfair advantages.

[@alandoherty5237]

Great video Joe

[@mr.bullion6786]

I can see a lot of new electric MG on the roads where I live.

[@ivancho5854]

I see a few in the UK.

[@yamaneko-ex8fy]

Thank you Joe.

[@draftmama75]

I truly enjoy your vids. So informative :)

[@johnsovcom]

byd in Chinese means straight to landfill..

[@flagmichael]

We should remember crises of all sorts cause political instability, and in a country like China that is something to concern us all.

[@eileenoconnor391]

Thanks Joe love your work.

[@OLDMANTEA]

I bet many in the US think BYD makes underwear.

[@bobwallace9753]

Your chart shows PHEVs - plug in hybrid vehicles, not total hybrids. Most hybrids cannot be charged from grid power but only from their fuel engine.

[@storyteller5931]

Are not only Chinese EV's literally exploding, but their sale numbers are exploding in paper only .

[@thesuncollective1475]

They only sell them in China. Solar panels are another Thing tho but it may be on a nose dive, let's hope

[@bw9927]

Silly boy comment

[@unconventionalideas5683]

@@bw9927 The insurance figures show a strong discrepancy between Chinese Automaker Sales vs. registrations; no such discrepancy exists between foreign vehicle manufacturers and new insurance registrations.

[@DK-ev9dg]

Dumb as rock

[@patdbean]

11:00 BYD's figures include plugin hybrids. Tesla dose not make plugin hybrids.

[@peterglass9296]

In case you were unaware, BYD is an English acronym for "Build Your Dreams."

[@colincampbell4261]

Infrastruture is not ready for EV's yet. Secondhand EV value is poor.

[@DavidJohnson-yg8qm]

Here's the problem I inly need 1 tv. The manufacturers are making so many they want us to have one in every room. The fact is they are just making too many too cheaply. That goes for every bloody thing we buy except for food. It will ve the end of us if we don't stop this leap into the abyss of cheap plastic crap.

[@dancoffey4293]

Thx Joe, this is great stuff

[@dg7438]

Good

[@midimusicforever]

It's that OOFconomy again.

[@EightAcreLake]

Joe, What proportion of the Chinese car production is sitting in the acre upon acre of fields turned into dumps for their cars?

[@skankhunt9078]

I domy understand why prices on AliExpress are skyrocketing

[@Blocker246]

Staying away from EVs not safe could be dead weights for years to come

[@paulgooderham]

Just need new quality productive forces.

[@mateobravo9212]

This over capacity is only a problem during peacetime. If you need extra capacity for the times ahead, you can discard normal economics. Good luck everyone.

[@europeantechie]

Hi Joe

[@RJV9000]

Lower prices ,lower inflation, lower interest rates = more consumption

[@fuzzwarmy]

Great video, Joe! How about an update on Argentina? Milei cut interest rates for the third time in three weeks. Inflation is falling, the peso is strengthening, and Argentina reported the first quarterly budget surplus since 2008. Quite a turnaround!

[@AnthonyMoore-rd7yv]

Good video 📹.

[@discopot]

James Sinclair did a very interesting video about purchasing products in China, he got the impression that Chinese suppliers were making a loss but making via tax rebates

[@krypton1260]

China has trouble selling EVs in Europe, because the vehicles actually need to meet safety standards. The cars can cost 1€, but nobody can buy them if they're not road safe.

[@bobwallace9753]

There's a problem with your comment. Chinese cars are being sold in significant numbers in Europe. Obviously there are some Chinese EVs that meet European standards.

[@orionoregon974]

Should be banned altogether. Not just EVs but everything they make that is unfair due to lack of labor, environmental protections.

[@bobwallace9753]

@@orionoregon974 Today's Chinese manufacturing practices are not the same as yesterday's manufacturing practices.

[@advancetotabletop5328]

@O: USA is adding tariffs to Chinese EV’s. Dunno about other countries.Good way to counteract dumping. Hopefully, these will be revenue tariffs, not protectionist. As a USA taxpayer, I’d rather have China pay the government. :P

[@bobwallace9753]

@@advancetotabletop5328 I'm not sure China is dumping EVs into Europe. Chinese EVs sell for a lot more in Europe than they do in China, even after accounting for shipping costs. My take is that the Chinese government is supporting/subsidizing their EV manufacturers for multiple reasons. 1) To take a very large portion of the world vehicle market, bringing a lot of revenue into China. 2) To reduce vehicle-produced air pollution in Chinese cities. Urban air pollution is a very large problem in many Chinese cities and mostly caused by vehicle fumes. 3) To reduce spending on imported oil and fuel by moving from ICEVs to EVs charged from solar and wind farms within China. The US is likely to continue setting high tariffs for Chinese EVs in order to protect GM and Ford who failed to take EVs seriously enough and are now so far behind that actual competition could rapidly drive them bankrupt.

[@jeffhaack1325]

Oh no, prices might go down!!

[@nanostar6138]

No ones working on a truely economic basis! How much debt can you pump into the system?

[@SpringIsBACK]

I think it should be pointed out that China's huge growth in manufacturing depended in the 1st place on subsidized companies being in one product area after another able to drive US and European companies out of the market, or shift their manufacturing to China, by flooding said market with cheap product. Appliances, magnets, tools (most inexpensive ones, anyway), household items, ships...

[@htaukkyanmyo4437]

2024 GDP: China 5.2% is BAD; UK 0.4% is GOOD!!

[@angelarch5352]

super cute cat at end thank you!:)

[@cezaryroman11]

A lot depends on what profit margins they originaly operated and how much they can reduce prices before going into red

[@tonymckeage1028]

Great Video Joe, I remember a presentation 30 years ago of China producing well above the consumption of LCD screens, and that it signals that their prices must fall! I think China has an interesting strategy of being the worlds manufacturer period!!! and thus maintain full employment!! thanks for sharing

[@edpotter1491]

I hear their cars are being warehoused, essentially, at the ports of European countries.

[@Caljostro]

I am surprised you are not mentioning the situation in the Indian cell phone market, where China pretty much killed all local manufacturers with low prices they couldn't compete with. They want world leadership in key industries, and that's how they are getting it.

[@katiehettinger7857]

China's leadership will be short lived. They have lost access to the new high end chips and their cell phones will be out dated technology soon.

[@lexslate2476]

Chinese government wanted their EV manufacturing capacity to mature, and they provided subsidies. This might be incorrect, because i heard it on a youtube video and some people have an axe to grind, but if i heard correctly then the subsidies were enough to cover the cost of making a vehicle. So a company could make them, claim to have sold them, get paid enough to cover their expenses on the vehicle and make another one, and not actually need anyone to be using the car.

[@dprout3392]

Joe Blogs, thank you so much for your well documented information. I have one favour to ask you. Latest figures show UK with a busines growth above all other G7 countries. To me, it sounds like the latest IMF announcements regarding Russia. Could you brief us on real numbers regarding the economical situation of UK. Thank you once again.

[@johndextersantos9541]

I just recently bought a device worth 150USD for only 15USD direct from china.

[@platin2148]

Well this seems like the Amazon way of getting rid of competition and there is also no solution for that either.

[@jasonsgreen]

This correlates with increases in the us interest rates in the past when the us raised rates it directly impacted manufacturing in the US now that everything is produced in China it directly affects the Chineses manufacturing.

[@alexswanson7127]

The biggest problem with government constantly subsidising loss-making industries isn't what it does to the market, it's what happens when the government runs out of money? After all, the government only has money in the first place by taxing profitable industry so what if the profitable industry gets to the point where it can no longer carry everything the government is spending money on including industry that isn't profitable? This isn't just theoretical, for example the UK hit exactly this buffer in the 1970s.

[@colincampbell4261]

Very few people want EV's.

[@andytroo]

9:55 - Chinese EV sales are more than the rest of the world put together - 1.8M/3M - not just those ahead of them.

[@petersq5532]

the EV sales chart : it is the percentage of increase. when it is 0 there is no inrease. nor decrease. Joe makes a common mistake here in the interpretaion. sales and value remained stagnant in 2024.

[@theburnhams2925]

Good ol' Joe....who immediately following a brilliant discourse on a depressing subject chippers right up with "So, if you've enjoyed this video ..." A true professional, he is and recommended to all!

[@TheGhostGuitars]

32:00 Ye didn't mention the reaction and potential countermeasures the other governments in the global markets are considering. Like levying extra tarrifs against imports from the subsidized businesses to outright banning of imports from there.