Good News & Bad News, page-42939

Agree be wary. Video makes a range of unsubstantiated claims which suit China's narrative primarily that subsidies are no longer necessary. We will see what the European investigation determines shortly.

A second claim is that the tariffs are an election stunt. This fails to acknowledge that the US election cycle coincides with the tremendous ramp-up of Chinese auto exports underway since 2023, China having flooded its own market and determined to similarly flood those of Europe and the US. China needs to undergo a viscious rationalisation cycle due to the overproduction of EVs domestically stemming from CCP pumping cash into the sector resulting in between 100 to 200 EV outfits feeding off the largesse.

At least the video acknowledged China is effectively barred from the US EV market. Tariffs are to buy time for US industry to catch up with Chinese outfits having first mover advantage in autos and batteries. Clearly the Chinese hate the tariffs as their intention is to put US industry out of business leaving them dependent on China. US have many projects coming on line next couple of years.

Another furphy that the tariffs are to "contain China" : classic CCP spin. Clearly, the primary aim here is to build out an alternative supply chain independent of China that will compete, and compete it will. The Yanks have no intention or capacity to prevent China from selling autos outside US sphere of influence, a large part of the world where cheap Chinese EV's will be absorbed as fast as they can make them.So the CCP containment narrative is false along with the notion these tariffs will do anything substantial to delay the green transition under Biden. Trump is another matter.

Creation of a separate supply chain is a national security issue. Bidens tariffs help achieve this aim. The alternative is to roll over and let the Chinese call the shots. Its a hard reality that the world is splitting in two geopolitical spheres. Australian lithium producers get to play both sides of the fence. Perhaps China having received negative feedback from US and EU tariffs (which may well include more stringent ESG components), might make an adjustment and start producing EVs compatible with EU demands utilising less polluting inputs than lepidolite, and less dubious inputs sourced in impoverished nations with poor labor protections and ecological considerations in the extraction process. ESG production streams will attract a premium.

Rant over IMO after viewing CCP propaganda.