zlacker

>>campus+(OP)
These are some staggering numbers: 52 thousand Chinese EV companies shut down last year.

Xi Jinping (successfully) stimulated EV and semiconductor manufacturing through massive government investment and loans. The problem is that so many companies were funded that they are now viciously driving each other out of business through oversupply.

Because the supply chain networks are so dense, each bankruptcy easily cascades because the company then defaults on contracts with vendors and customers.

None of this, of course, is good news for US competitors like Tesla. With such a large field of vicious competition, it’s almost assured that the small set of businesses that succeed will be able to outcompete globally with extremely low cost structure. We see this happening with BYD.

>>highfr+uf
The US report 453 thousand bankruptcy filings in 2023. There are 33 million small businesses in the US. Etc, etc, etc. Big numbers are hard to put in perspective - which the very fine article was very careful NOT to do. Obviously it was not 52 thousand large companies but there again, one would need comparative numbers to say for sure. On top of which most single large corporations usually owns dozens to thousands of separately incorporated units. Who knows what that number is about.