2026-07-10 15:45 UTC
@rysiek@mstdn.social I would argue that is only partly true. Yeah there are quite some issues within the German, rather European automotive industry - but the Chinese threat is far bigger, not only for the automotive area but all high tech products where China decides to compete.
The problem is that China does not play by any rules. The currency is completely undervalued, giving them an advantage of 30% - on that alone. The mechanisms that would counteract this are basically blocked.
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@mr_harm@mastodon.social 2026-07-10 15:49
@rysiek@mstdn.social since China does not want to import and by now produces everything itself, it does not care for import goods to be expensive. The few things they need to buy they can subsidize. Therefore Chinese companies reap the benefits of the undervalued currency but are shielded from the disadvantages. All Chinese companies also have access to super cheap loans while the European competition needs to play by fair market rules. The goal is basically to kill all manufacturing outside China.