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
52,000 sounds like a scheme to give government money to party members with plausible deniability.

Xi Jinping is not stupid (quite the opposite), he knows that 52,000 companies never had a chance. So it is not the real economy we are talking about.

>>kKewjG+TG1
The Chinese never intended all the companies to succeed. They intended that the market would force bad companies to die. The point is to replicate the bank system or the tech system and have a few extraordinarily large players the central govt can control.

The very last thing this was intended to do was be a corruption scheme. Why does everything have to be a conspiracy these days.