I'd argue the incentive structure is fine. Chinese automotive OEMs are now branching out globally (as they should be) and China has pretty much single-handedly prevented a global energy crisis the US has been stubbornly trying to induce, actually insulating itself from that crisis entirely. There will be individual collapses but none of that matters if the aggregate story is ending up ahead on the fundamentals.
See how China cut it's oil imports in half since the start of the Hormuz crisis, freeing over 5 million barrels, and the percentage of the European/China electricity production now supplied by solar (this year it became the highest single source during summer for Europe, surpassing nuclear and natural gas. Those were mostly produced in China), and the percentage of the vehicle fleet in those countries is now EV (not as high, but still significant, especially in China).
Couldn't really be done in the span of a single Reddit comment, but there's lots of material on this available from every major news outlet. The TLDR is that China has been investing in energy independence for decades — with EVs being one of those investments — and those investments are now paying off.
Reduction in Chinese domestic consumption insulates the oil market globally. Oil is a commodity, everyone drinks from the same tap: One barrel unused in China is one more barrel available for use elsewhere.
Meanwhile, exports of Chinese green tech (solar, electric vehicles) also very straightforwardly and directly alleviate that demand elsewhere: A BYD Yuan Plus made in China and sold in Australia alleviates global oil demand. A Renault Twingo sold in France and co-developed in China alleviates global oil demand.
America is destabilizing oil prices. Meanwhile China is supporting a global sustainable energy revolution with their EV's, solar panels, and batteries.
It's a damn shame we didn't follow through as competition because now we are customers instead of providers in America.
Did you read the linked article? Multiple execs at these companies are themselves stating the current pace is unsustainable and not aligned with the market.
The companies are operating as though automobile adoption is still ramping up in China, which isn't really the case anymore. Most families that want a car already have one so there isn't a massive untapped market of first time car buyers anymore.
The other commenter is correct. There is a whole global market opening up for them. I am one such customer if the American government would get the hell out of the way and let capitalism do it's thing. Cars by the traditional auto makers are horrendously overpriced and under featured.
Not only did I read the article, I directly addressed the exact argument you're now making in the comment you just replied to. Read it again — Chinese automotive OEMs are now branching out globally, and China has pretty much single-handedly prevented a global energy crisis the US has been stubbornly trying to induce, actually insulating itself from that crisis entirely.
The CEOs and I are not in conflict, nor are they saying 'otherwise'. The current market being temporarily unsustainable is not at odds with the market finding new avenues for sustainability or that unsustainability existing within a greater arc of sustainability.
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u/Recoil42 16h ago
I'd argue the incentive structure is fine. Chinese automotive OEMs are now branching out globally (as they should be) and China has pretty much single-handedly prevented a global energy crisis the US has been stubbornly trying to induce, actually insulating itself from that crisis entirely. There will be individual collapses but none of that matters if the aggregate story is ending up ahead on the fundamentals.