filoria
Western countries support individual companies constantly.
Intel received $8.5 billion in funding under the CHIPS Act
The General Motors bailout forced the US government to write off a $11.2 billion loss
Shell, ExxonMobil, and others have received countless billions in O&G subsidies
Government sales make up $49.2 billion, or 74.6% of Lockheed Martin’s total sales
The entire principle of US industrial policy is that the government does nothing and everything should be outsourced to a private contractor. Inherently that must mean supporting some private companies more than others.
Your argument makes literally no sense when considering that Chinese companies consistently and notoriously sell their products in China for a fraction of the cost of the export models. BYD’s Atto 3 sells for $20k in China and more than $40k in the EU, for example. Those export prices aren’t subsidized. In fact, their margins are absolutely absurd.
The fact is that China has figured out industrial manufacturing and can build the same class of product for half the price… Or less. Of course, there’s no reason to pass those savings onto consumers without competition, and export markets are simply less competitive than China.
Economics says that Chinese companies are just more efficient as a whole - through sheer competitive advantage, China can produce more per work-hour than everyone else. In fact, this has been a huge problem for China’s labour demographics as there’s just simply no more manufacturing jobs - an auto factory that would’ve employed thousands just a decade ago might employ barely a few hundred today. Instead of outsourcing to other countries, most of those jobs have been literally outsourced to robots
The story not being told is that Chinese factories are absurdly automated compared to the rest of Asia - their competitors are South Korean and Japanese factories, but they’re entering markets that are still heavily labour-centric. China is spearheading this new evolution of industrial manufacturing and everyone else is forced to either adapt or die.
4.7% YoY Q2
5.3% YoY Q1
0.7% QoQ Q2
1.5% QoQ Q1
Retail sales were the contributor (2.0% YoY growth, vs. 3.3% expected)
Retail growth is being sandbagged by a few key factors:
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Luxury goods demand being beaten to the absolute ground. Eviscerated.
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Foreign brands have tanked in China - Apple, foreign cars, etc. and have been replaced by (cheaper) domestic alternatives like Huawei, BYD, etc.
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New trade restrictions with the US and Europe have limited Chinese consumption patterns. For example, the RTX 4090 is blocked from being exported to China.
Definitely no signs of foreign interference, which the US would never do in South America.
If anyone wanted more evidence of how IMF loans are not in the best interests of the countries that take them, see here.
