SQM 's lithium selling price plummeted. #lithium $SQM...

SQM 's lithium selling price plummeted. #lithium $SQM

https://x.com/minenergybiz/status/1793554434540163357


..China's meteoric EV rise didn't come by chance nor the sole outcome of entrepreneurial spirit. It had been centrally planned and working in unison with industry to make it a reality. China did not leave it to free market dictates. And because it has a large domestic market, it has the advantage. In addition, its domestic market listens to the direction of the state. Helps explain the success of its EV transformation.
..In the US, Americans don't like being given an EV mandate by Biden, as they always believe in the freedom of choice. Hence, the US cannot 'force' the agenda on its people the way China could.
China's EV industry, led by BYD, drives job growth

Private companies account for 80% of new employment since 2019

EV maker BYD has added 470,000 workers since the end of 2019. (Photo by Yuki Nakao)
NORIYUKI DOI, Nikkei staff writerMay 22, 2024 04:18 JST

SHANGHAI -- China's privately owned firms, especially those in the electric vehicle industry, have created jobs at a much stronger pace than their state-owned peers this decade, according to a survey of corporate data.

There were 30.57 million employed at roughly 5,400 companies listed on the mainland at the end of 2023, according to filings as of April 30. The number was up by 3.52 million people, or 13%, from 2019.

Private companies were responsible for 2.85 million of the additional employees, or 81% of the share. Jobs at businesses controlled by local governments only increased by 350,000 people.
State-owned enterprises under the umbrella of the central government added 100,000 jobs since the end of 2019.

Although direct comparisons cannot be easily drawn, the data shows that privately owned companies accounted for 50% of the jobs added between 2010 and 2020. State-owned enterprises had a relatively larger representation in that decade. Local government enterprises had a 15% share and central government enterprises contributed 20%.

The automotive, electronic device, and the semiconductor-new energy sectors were the main drivers of recent job growth. BYD, which is competing with Tesla for the global EV crown, saw its workforce swell by 470,000 workers last year from 2019. The company now employs 700,000 people.

That headcount is almost double that of Toyota, the world's top-selling automaker that had roughly 375,000 employees at the end of March 2023.

BYD has been on a hiring spree to support a production ramp-up. The company expanded its fleet of buses that ferries workers between corporate dormitories and production facilities. Employee cafeterias have upgraded menus as well.

The company has also drawn workers by teaming up with Shenzhen Middle School to establish the Shenzhen Yadi School. The school teaches employees' children at the preschool, elementary and middle school levels, according to BYD.

Contemporary Amperex Technology Co. (CATL), the leading EV battery maker, added nearly 90,000 workers between 2019 and last year.

Meanwhile, state-owned automakers have struggled to expand employee rolls. SAIC Motor, which is owned by the Shanghai government, went down by 9,359 workers over the four-year period. SAIC has joint ventures with Volkswagen and General Motors.

Dongfeng Motor, owned by the central government, has 2,617 fewer employees than it did four years ago. Both SAIC and Dongfeng were late to compete in the EV space, and the employment numbers underscore the cutthroat competition unfolding in the automotive industry.

Luxshare Precision, a contract electronics manufacturer, added nearly 100,000 employees. The company was founded by Wang Laichun, a former worker at a mainland factory run by Hon Hai Precision, the Taiwanese Apple assembler known as Foxconn. Luxshare is now competing against Foxconn, scoring contracts to manufacture the Apple Watch as well as the new iPhone 15 series.
New jobs created during the first quarter of this year in urban areas totaled 3.03 million, according to China's Ministry of Human Resources and Social Security. Job growth was up 2% from the same period last year.

But in the pre-COVID period between 2015 and 2019, the average first-quarter increase was 3.26 million jobs. The slump in the real estate industry, which is estimated to account for nearly 30% of China's gross domestic product, has created a tough employment market.

Job quality is also an issue, given China's 200 million gig workers. Uncertainties in pay and benefits will likely depress worker sentiment and weigh down on overall labor productivity.

Joblessness among the youth has become a social issue. The unemployment rate for workers between the ages of 16 and 24 has hovered around 15%.

Positions as civil servants or at state-owned enterprises are coveted due to stable working environments and generous benefits. Competition for these jobs has led to more people with higher educations getting hired.

At China Construction Bank, one of the China's four largest state-owned banks, people with postgraduate degrees make up 13.58% of the 370,000 workers, according to the bank.

China has more than 700 million workers, according to the National Bureau of Statistics. Most work for unlisted agricultural, fishery and forestry companies, small and micro businesses, or operate their own businesses. All these sectors were hit hard by China's zero-COVID policies.

Although the EV and new energy industries have staged growth, it remains inadequate relative to the vast Chinese job market.

An April 30 Communist Party politburo meeting chaired by President Xi Jinping declared that efforts should be made to "focus on the employment-first strategy," but no specific measures have been taken.

At the same time, the Chinese government is tightening controls on the tech industry. Alibaba Group Holding and Tencent Holdings added 100,000 workers and 40,000-plus workers, respectively, over the four years. An excessive crackdown may affect job growth in the private sector.