this post was submitted on 15 Mar 2025
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Do we really need Chinese EVs though? Both Kia and Hyundai, for example, make good EVs at a good price. Im not sure I would trust a Chinese made EV. Maybe thats a bias but do they meet Canadian standards?
To be sold here, they would have to meet all Canadian safety standards. This is a non-issue. Lots of vehicles sold here are, or have been built in China. The Honda Fit is a notable example. Plus, China makes many components and complex assemblies for most cars built these days, even for the high end “luxury” brands.
I have a Hyundai EV and I love it. It’s a fantastic vehicle.
But also, the Chinese EVs are extremely cheap relative to these. If they are trustworthy or safe or good is open to interpretation but they have been extremely popular in Australia for example.
My concern is that we’re antagonizing a potential trade ally to protect a domestic industry which feels to me like it cannot thrive in the medium and long-term. It relies too much on the Americans and they have been unreliable and chaotic which is bad for an integrated production system.
China is selling these at cost or lower to put competitors out of business. They deserve to be tariffed. There are also reports of forced labor being used to build these. Wouldn’t want to drive something made that way.
These types of claims are incredibly difficult for a layperson to evaluate. There are at least two explanations for charging very little profit as is suggested BYD and similar companies are doing now.
Incumbent monopolists will absolutely use prices to bully competition out of the market so they can enjoy a longer period without pricing pressure later. This has been well documented across many industries. However it's also a normal occurrence where a disrupting upstart will apply a low profit margin or even operate at a loss in order to build market share and achieve higher efficiencies of scale.
I am at least mildly concerned that the Chinese EVs seem better fit the mold of the disrupting upstarts, and not that of the incumbent monopolists. If they are serving a lower-price-point aspect of the EV market that the traditional manufacturers are not filling -- that is a good thing. This is a role that many of the brands now considered mainstream once filled when they were newer to the western markets.
However, your points towards forced labour are absolutely on point. This is a greater issue that affects all trade with China, and it's one that we have largely been ignoring for a long time. Every time we buy something made there with it's unknown providence, we are participating in a system that must be described as evil. I wouldn't want to drive one either.