"'Overcapacity' is not always dumping," Marv tells us. Scare quote aside, he doesn't give us his idea of what constitutes dumping. No matter. It is clear from the facts that China pursues mercantilism: the building of industry capacity beyond what the domestic buyers can buy, intending to export.
By 2026, BYD's production capacity in China will reach 6.55 million EVs up from 2.9 million at the end of 2023. To fully utilize all this capacity BYD would need to more than double its domestic EV sales—a challenging feat given the anticipated slowdown in China's overall EV sales. Even to maintain capacity utilization at 80%, BYD would need to increase domestic sales by 81% by 2026 https://rhg.com/research/aint-no-duty-high-enough/ or https://rhg.com/wp-content/uploads/2024/04/Aint-No-Duty-High-Enough.pdf ( https://rhg.com/wp-content/uploads/2024/04/Aint-No-Duty-High-Enough.pdf ) May 10 (Reuters) - China's car exports surged to a record high in April, data showed on Friday, as domestic sales slipped 5.8% from a year earlier amid intensifying price competition and consumers' caution about spending on big items during a shaky economic recovery. Passenger vehicle sales in the world's biggest auto market fell 5.8% in April from a year earlier to 1.55 million units and slipped 9.6% from March. https://www.reuters.com/business/autos-transportation/chinas-april-car-sales-swing-contraction-despite-nev-milestone-2024-05-10/ Marv tips his hand when he talks of "a more efficient producer, as is the case with China's EV's." No, the main mercantilist advantages that Chinese producers enjoy are wages kept vastly lower than European and US workers' wages, lax environmental rules, and government subsidies far larger, as a percent of GDP, than European and US subsidies. For thirty years the US left has largely ignored the ravages of globalization on US workers. Marv's apology for PRC mercantilism compounds a line that pushes workers toward right-wing populism. For a socialist policy on tariffs, I wrote "Trade, Trump, and Us" at http://mltoday.com/article/trade-trump-and-us/ -=-=-=-=-=-=-=-=-=-=-=- Groups.io Links: You receive all messages sent to this group. View/Reply Online (#30475): https://groups.io/g/marxmail/message/30475 Mute This Topic: https://groups.io/mt/106146595/21656 -=-=- POSTING RULES & NOTES #1 YOU MUST clip all extraneous text when replying to a message. #2 This mail-list, like most, is publicly & permanently archived. #3 Subscribe and post under an alias if #2 is a concern. #4 Do not exceed five posts a day. -=-=- Group Owner: marxmail+ow...@groups.io Unsubscribe: https://groups.io/g/marxmail/leave/8674936/21656/1316126222/xyzzy [arch...@mail-archive.com] -=-=-=-=-=-=-=-=-=-=-=-
