China is the leader in EV car production but it’s not quite the success you might think it is.
The CCP was apparently determined to claim that they are making more EV’s than Tesla. But in order to get the EV subsidies, companies are producing vast numbers of cars no one wants to buy. It seems these cars are registered, falsely listed as “sold” and driven 30 miles to a graveyard to presumably rot, or spontaneously combust, whichever comes first. After thirteen years of one particular subsidy, supposedly only worth 3-6% of the best selling car, the government has paid out nearly $15 billion, which seems like it would buy quite a few fields of Neta V EVs.
“China is the land of shortcuts and facades”
Winston Sterzel has an insiders view on China, and claims there are also fly-by-night investment schemes which appear, inflate and disappear, in get-rich-quick projects purely designed to scam investors out of their money. In 2018 bicycle sharing schemes led to mountains of rotting bikes, and so it is again — this time with glass, heavy metals and rare earths.
Who knows what the real price of an EV is in China?
The long running subsidy ended in January, causing a decline in sales, which was supposedly only 1.4% down, but was somehow so bad (whatever the real number was) that several cities leapt to offer their own subsidies of about US$1,452 per car, and now the government has decided to extend the “EV Tax incentives”.
Not surprisingly, given the waste, inefficiency, and purposeless grind, something bad is happening in the Chinese economy — all car sales (petrol and EV’s) are down nearly 20%.
Which is not to say Western economies don’t have their waste, inefficiency, and purposeless grind.
Elon may be getting the last laugh if this May 31 headline is correct: