zlacker

Genuine question, if they have so much excess capacity and low domestic demand, wouldn't it be easier to just export to other countries? Or are there barriers put in place in the world stage that limits this?

>>rkwz+(OP)
You are suggesting that China "just" exports an order of magnitude more.

That's not a simple "just" you have there. Who is buying all those goods?

>>rkwz+(OP)
Tariffs[0]

0. https://www.bbc.com/news/articles/cy99z53qypko#

>>rkwz+(OP)
A common bit of advice is to build one less of your widgets than what your customers will buy. You then meet demand (nearly!) and your price gets supported.

Chinese manufacturers on the other hand, seem to be following the "build it and they will buy" philosophy. When you do this, prices (and profits) head towards zero.

This is the exact opposite of the Toyota Way, where customer demand serves as a signal (Kanban) to produce a widget and deliver it when needed.

>>rkwz+(OP)
Let us assume they start dumping all their excess internationally. Do you think other countries will just allow china to flood the international market and drive other countries respective auto makers out of business? Other countries will raise tariffs accordingly until they reach an equilibrium that they feel comfortable with.

>>almata+G3
Not everyone makes cars. Shrinking the global market shares of the ones that do will make the competitors' economy of scale worse as they withdraw from the ROW to hide behind the trade barriers.