Comment by themaninthedark
4 days ago
>China has gone all-in on EVs because over the years they smartly built up the world's best rare earth refining capabilities
If by that you mean they propped up their industry and undercut everyone else until they went out of business, then increased prices to a point just below where it would be profitable for someone else to try again?
Then use their monopoly position to further their interests in other sectors?
Edit: Which I may note is probably the same strategy being applied here as well.
Yes, that’s mostly what I mean. I think it was a smart strategy. The world is addicted and dependent on their manufactured goods, and while the US tariff regime has been a bit haphazardly implemented, it’s ultimately the right move if you want to protect domestic industry.
Mexico recently applied 50% tariffs on Chinese imports. Of course other countries without a trade deal also were slapped with tariffs, but they were broadly targeted at China because Mexico’s president is handling Trump much better than, say, Carney.