Are the solar panels and EVs 'dumped' or are they just actually cheaper to produce? I would argue its the latter. Sure there is some state investment in the supply chain, so it is in Europe. Sure the are EV subsidies and green energy subsidies, but so does Europe have them.
Fundamentally BYD cars are cheaper because China has localized the complete supply Chain or has very good raw materials import and local refinement capability. BYD invested themselves and spend 20-25 years vertically integrating while European companies put out huge dividend and miss major technology trends.
The EV market in China was hyper competitive with a huge number of competitors and the subsidies were strategically phased out to turn the industry competitive rather then relaying on protection.
The idea that China has enough money do 'dump' products in literally ever sector that people accuse it of 'dumping' AND at the same time have enough money for massive infrastructure programs at home seems like coping to me.
I largely agree with you on this. I mentioned it because of the irony when compared to US big tech, where it's never mentioned while being their entire playbook - and as you're pointing out, in reality a much better example than Chinese EVs. The whole Silicon Valley VC model (hi YC!) where we talk about "burning VC cash" - this is literally a euphemism for dumping. Subsidizing goods to make them artificially cheap, far below cost, to gain market share, establish a near-monopoly and then raise prices. Dumping at scale. Amazon, Uber, now OpenAI. The only answer to that is protectionism.
Fundamentally BYD cars are cheaper because China has localized the complete supply Chain or has very good raw materials import and local refinement capability. BYD invested themselves and spend 20-25 years vertically integrating while European companies put out huge dividend and miss major technology trends.
The EV market in China was hyper competitive with a huge number of competitors and the subsidies were strategically phased out to turn the industry competitive rather then relaying on protection.
The idea that China has enough money do 'dump' products in literally ever sector that people accuse it of 'dumping' AND at the same time have enough money for massive infrastructure programs at home seems like coping to me.