Q: Why is China such a threat? They are: A1: smarter; A2: better educated; A3: more disciplined; A4: less addicted; A5: wealthier; A6: less neurotic; A7: more agreeable; A8: healthier; oh! Did I mention “smarter?”
Average Chinese IQ is similar to other East Asian countries like Japan and Korea, about 105 +/-. The Chinese being vastly better educated on average is what makes the difference in converting potential brainpower into researchers, scientists, engineers, doctors, technicians, and efficient workers. That is, the Chinese are doing a great job of finding talented kids and nurturing them into high achievers. Education changes a person's destiny, and on a national scale of 1 billion people, changes the fate of a nation and the world.
Every country 'copies' from the best. When China becomes the best, do you think that the West would not 'copy/steal through espionage' from China? History shows that the West had 'copied and stolen' from China in the past.
China copies, at first, although in some industries, they were doing assembly of foreign designs or licensed production. China builds an exact copy to understand how a thing is built, then they incrementally improve. This is typical of all industrial development, copying before improving. It's hard to improve something that you don't understand. The key difference is that the Chinese market is so large, they can produce big numbers to address small inefficiencies.
After the Lebanon pager incident I no longer want to risk western products if I can. I don't know if I have an item Israel had tempered with which might have skipped it's intended destination.
I worked in Hong Kong Air Traffic Control 98-2001 and helped to open the new CLK airport.They built that airport from scratch,plus motorways,3 bridges,rail link, tunnels and a train stations in about 7-8 years.They have continued to expand with a third runway,huge terminal and aircraft parking in recent years. Meanwhile in those 25 years the UK hasn't done anything significant as far as increasing runway capacity at the main London airports. The point is that they are forging ahead while here we are just shutting everything down.
Dear Dave, China’s labour has been considered expensive as early as 2010. You may need to update your perception. For example, coastal provinces unskilled labour starts at around 600-1000 usd in China, and in Indonesia it’s about 350-500 usd. These are numbers I deal with for my businesses in those 2 countries. What most people who don’t actually handle commercial parts of a contract don’t understand is the DDP cost is king, in incoterms DDP means Delivered Duty Paid, best explained as Cost to Customer warehouse so Net Cost to end customer is just add operations and logistics to end customer. Due to China building insanely vertically integrated supply chains, economies of scale and highly efficient labour, the DDP cost of China production is still much lower than Indonesia. An example would be Fabric Mill in Indonesia charging us $3.50 per yard (yes I don’t know why textiles still deals in banana units) ex-works (we pick up at Mill and still have to add delivery to our factory) while DDP China Mill to Indonesia CM (Cut Manufacture) factory is around $2.50. That dollar difference can go into million bucks difference on large orders so really labour costs is these days not at the top priority of consideration for people like me who is doing manufacturing in several countries.
The fact of the matter is that China has been de-risking from the US and EU for at least a decade, competently and successfully. They have invested massively and smartly in developing new markets outside of the west, e.g. their biggest trading partner is ASEAN, not the US nor the EU. They have successfully broken into the newest and most technological advanced industries, e.g. green energy, EV, aviation, communication, space, semiconductor, quantum computing, AI, biosciences, etc. etc. China can live without the US and the west; it would be a bit painful but manageable. The US and the west sure as hell cannot live without China. Their societies are not accustomed to the notion of living smaller. Without imports from China, these societies will simply fall apart.
Without Chinese products, the West would see at least +10% inflation as supply chains add extra steps with slight processing. For example, a Vietnamese factory might sew 1 button on a shirt and add a "Made in Vietnam" tag. The bigger issue is that China can retaliate HARD by choking supplies that the West needs, and the Gallium / Germanium / Graphite controls are just a taste of what China can do. .
Great video Dave. A few points, so remember China was about the 8th poorest country in the world after WW2 and they needed all the help they could get. They were only just getting off their knees in the 80's when VW turned up. It wasn't so much copying, the western manufactures could sell tariff free in China if they entered into a joint venture with a local company and agreed to a technology transfer. They didn't have to do this. The German car manufactures, and I'm sure others, never produced their best technology in China. In fact you could argue they helped encourage the Chinese to develop EV's, as the stuff being sold to them was the most polluting old technology available. One great example VW made the Santana in China for almost 40 years, think they only made it for about 4 years in the west. Selling old out of date cars like this really helped spur them on to find less polluting alternatives and hence them turning to EV's. Another example is the fact that Audi's newest design concept doesn't have the 4 rings on the grill as it is so tainted there. So VW was making 50% of its profits on 40% of its world sales in China, this clearly tells you they were making a small fortune out there selling ancient technology. I believe western brands were about 65% of the market and are now down to about 25% of an admittedly larger market now. Interestingly less than even 5 years ago the Chinese consumer was more reluctant than us in the west to buy Chinese made products, preferring western brands. This has now changed and they can't believe how dated the western brands are, with the exception of Tesla, compared to the local stuff. To give you an idea VW has to sell a high spec ID3 for about £12,000, with superior Chinese software as the locals wouldn't put up with what we get in our ones. Theres a channel called Inside China Auto by a Brit who does some good videos on Chinese cars and has just, at the time of posting, released one from the Guangzhou motor show.
I bought a BYD Seal in Australia, this is the best car I have ever driven in my life. I have sold my former Toyota Corolla, and I don't want to drive an ICE car anymore.
there is a narrative that China learn from the West. except this isn't true, the first country China made a deal with is Japan. regardless of if western companies invest in China, China would have gotten all they need in advance manufacturing from Japan.
@@lagrangewei This is not true. China has their own base even in the 60s when it was considered poor, but always having excellent engineers and technicians. They OBSERVED developed countries but were able to developed and perfected their own trucks, cars, machines, tools.
Great analysis. My father told me in the 1960s (he was state engineer in malaya) that within 30 years the Chinese would rule the roost as they were brilliant engineers and hard workers. He was a bit out with the date but right about the outccome. Tarrifs are foolish. They will not work. Cannot see sir keith starmer grasping this fact.
I think your father was right I remember back in the 1990s thinking this was it this was the last chance for the west to turn things around when it came to a rising China In 1998 around mid 60s of the factories in China still had foreign ownership By 2008 that number dropped to mid 30s And that was before the US subprime crisis cause the shuttering of 100 thousand factories put 27 million people out of work in China. Most never went back to the factories to work Question becomes where do you put the economic/competitive advantage one country had over the other Definitely in the 90s the USA was dependent on China for its goods and that’s when the average westerner first started to hear about trade deficits and China holdings of US debt
EU tariffs aren’t applicable here and I believe Starmer is courting Chinese brands to set up shop in the UK providing jobs. Also a much more generally clean energy mindset and action plan than their predecessors, particularly Sunak.
@@markbennett6658 Chinese EV companies (not Chinese bought companies like Volvo/Polestar) sold 300k vehicles in the EU in 2023 Most people don’t know 30 million cars are sold in China every year. Of those 8 million were EVs last year and projected 10 million EVs this year That still leaves 20 million ICE vehicles sold in China every year many of which are made by US and European Legacy car manufacturers China could put the final nail in the coffin, for many of the automakers… cite over production, national security risk, fears, threat etc etc But then we are lucky they don’t think in zero-sum game type of ways or else they could bankrupt a lot of companies Heck most people don’t know it’s EU multinationals whose high flying stocks are in their stock portfolios/ pensions who are making the lion share of the profits exporting their goods from China back to the EU Inflating that EU trade deficit to China Which btw pales in comparison to the 500 billion USD …(EU companies based within China ) make selling their goods to Chinese consumers every year The EU is just to duuuuuum…to see China is their market Btw if you want manufacturing to go back to Europe You need to build the factories, build the infrastructure, give financial incentives, tax breaks, educate the workers build the educational facilities etc etc etc Meaning all that cost money Meaning most Europeans need to be happy to pay even more taxes and pay even more for their European made goods So that some a Europeans can have manufacturing jobs
@markbennett6658 that's pure fantasy, the UK and the US are locked step about China, and the trouble making by US NGO,s with UK help in 2019 in Hong Kong which will never be forgotten
I have been telling people this for a long time. Businesses wanted to use the low cost manpower of China. They bacame masters and they were faster able to switch to the new technology, compared to the dinosaur businesses stuck in the way they make things. The Chinese have also become richer and so are not necessarily going to stay cheaper. Even Tesla and Apple make many products in China. This was a great as well as very well explained and timely.
I believe the factory out there is Tesla's most efficient. And I think Apple tried to move some iPhone production overseas but failed. Chinese labour lost if cost competitiveness about 20 years ago, however their factories are now, generally, the most hi-tech and competitive in the world.
@@jasonmugridge Apple tried to move iPhone production to India, but the reject rate was extremely high and overall efficiency was low. That said, Apple should definitely move all US-bound iPhone production out of China to India, solving American "national security" concerns, and just price accordingly.
Very illuminating and enlightening video void of the usual bias trope. But sadly there are only a handful level-headed intelligent prople like Dave around to shine brightly in the darkness of today. ❤from Indonesia
Harley-Davidson is still dominant in the US, for now. This despite CF Moto and others making vastly superior motorbikes at much lower prices. It's really kind of shocking how much people will pay for an objectively poor motorbike and the ill-fitting accessories to match.
HOORAY! At last, good, solid content with which I never once disagreed, even wearing my sceptical, critical appraisal hat. Listen to the criticism of yesterday's content, Dave, and take it on! MORE OF THIS STANDARD DAVE even if it means dropping the need to put something out every day. Quality is king!
Every coubtry learned frim each other and made improvements. Startingbwith the steam engine. China did learn from the west west overtook it, and the west can't accept this fact !
In the West the fundamentals and principles that made their manufacturing and engineering powerful were readily discarded over the pursuit of short term profit and gains. The C-Suite of these companies have known for a long time what the Chinese were capable of and yet stayed the course and are now feeling the consequences - well the workers and local economies are anyway. This is NOT to say that Chinese companies can't fall into a similar trap if not careful.
Legacy autos are status symbols: status is inversely correlated with usefulness. Ice autos are pretty much useless, so as status symbols… they are perfect!❤
Buy shares in BYD and Geely. I have. There is a Brexit benefit for MG in having the London Design Centre designing British cars for SAIC, the Chinese manufacturer, to build. Trump is an isolationist - good more for the rest of the world.
@@steverichmond7142 Still the same point - nothing in EU membership would have stopped a UK company designing for anyone in a nn-EU country. I can't see that it's a Brexit benefit.
Because the UK is not in the EU the tariffs do not apply to the UK. MG's would be far more expensive if they were subject to EU/Chinese tariffs. My point is that we get to enjoy British design on cheap(er) cars.
@@steverichmond7142 I'm not sure why you keep changing your point. I agree that, being out of the EU we're not affected by any EU tariffs on Chinese cars. But you originally said "There is a Brexit benefit for MG in having the London Design Centre designing British cars for SAIC, the Chinese manufacturer, to build." As far as I'm aware, having the London Design Centre designing British cars for SAIC has got nothing to do with tariffs on the imported vehicles. So my point remains - nothing in EU membership would have stopped a UK company designing for anyone in a non-EU country. I can't see that it's a Brexit benefit. Anyhow, it seems there's little point in continuing the discussion other to say that I own an MG5, made by SAIC Motor (more correctly, the SAIC Motor Corporation Limited) so enjoy the cheaper prices China offers (although to me, £35k doesn't seem "cheap"), and have nothing against Chinese imports or, indeed, UK companies working for Chinese companies. As Dave points out in his video, all we're doing is transferring our knowledge to the Chinese, further helping them acquire knowledge and understanding. As he rightly suggests, the West shot itself in the foot. Thank you Margaret Thatcher for your legacy of offshoring and de-industrialisation instead of using the North Sea Oil revenues to rebuild our national infrastructure (which slipped as a result of paying for the two World Wars) and to re-equip our manufacturing sector. We had one chance - and she gave it away in tax cuts. And, of course, massive thanks to David Cameron and Boris Johnson for taking us out of Europe. In what has become a cliché - the only country ever to inflict trade sanctions upon itself. There should be plenty in there to maintain a discussion for a month or two :)
A good episode thank you. I do wonder when people will start to loo at other parts of the 'cycle'. If you take jobs away from people in the west, how do they afford to buy the other products? I am not saying that we need to stop the cheaper products(I don't think we could anyway), no what I am saying is that producing the products is only one part of the cycle. As humans we need to look at the complete cycle.
Well, the explanation is not quite correct. Take the example of Apple. What sets Apple apart from the other companies (at least in the early days) is the core technology. These are things that CAN *NOT* be copied. It isn't like a piece of furniture. You simply CAN'T copy the core technology. And neither would Apple teach the Chinese (or anyone for that matter). So the advancement of Chinese phones has NOTHING whatsoever to do with copying. And that's the same for all other technologies. These are things that you simply CAN'T copy. And if the Chinese did copy Apple, Apple would have collapsed many years ago because the Chinese can always make the same thing with a lower price. ( PS. Copying of the low tech stuff is what they did in the early days. But the low tech stuff cannot explain what we are witnessing today. )
Tariffs are paid by domestic consumers and not the exporting country, but they have the effect of raising the relative prices of imported products. Other trade barriers include quotas, licenses, and standardization, all seeking to make foreign goods more expensive or available in a limited supply. In simplest terms, a tariff is a tax. It adds to the cost borne by consumers of imported goods.
when you choise big cash that is raising your money for dominant currency around worlr think you can drop your amount now your swift account will fall shamefull thief if the world land thief too lol
From Asia , It is unfortunate that I have no idea the name of this Dude who spins CRAPS , BULLSHITS AND NONSENSES ABOUT CHINA . IT SEEMS NORMAL THAT WESTERN PEOPLE ARE HAVING INHERENT BIAS AGAINST CHINA . ❤❤😂❤
Do it! Just don't be surprised when most of industrial production grinds to a halt due to a lack of Chinese intermediate goods and components, much less affordable ones. It would take the better part of a decade for the West to build up basic capabilities to replace a fraction of what China has at significantly higher costs.
What BEVs need to survive is massive subsidies and legislation that tips the scales against I.C.E vehicles. Without those, electric vehicles are dead in the water.
America fought multiple wars to ensure oil flow and low prices for ICE cars. The money spent during Desert Storm alone would cover several times over than what any country might spend on EV subsidies.
@@stevenjones916 In China 30 million vehicles are sold in the country every year Last year 8 million of those vehicles were EVs. While this year 10 million of those vehicles are expected to be EVs Im hearing whispers that would might even see 11 or 12 million That still leaves 18 to 20 million ICE vehicles many of which are from these Legacy automakers from the EU and the USA So it will probably be less than 50% But Chinese EVs still have room to grow in just China alone when it comes to the trade war China has just not taken the zero-sum game approach the west has taken against it… It embarrassingly has not even had to take out its big guns Well not yet
@@stevenjones916 Those Chinese Extended Range EVs typically have well over 100 kms all electric range, whereas US plugin hybrids are barely 10 miles range and can't sustain highway speeds or commutes.
@@Rednickincell Chinese car market is closer to 25 million cars, and they are now 50% EV sales and still growing. Within 3 years, NEVs will be something like 80% of the Chinese market, 20 million total. Of those, probably 12 million will be extended range EVs with 100 km all electric range and the inexpensive public charging infrastructure to support them, while 8 million might be BEVs averaging 400+ km electric range. China has already passed Peak Oil and may have hit Peak Carbon this year, and their reduced consumption is driving global oil prices down.
Tariffs are not normally the answer, but China are helping Russia wage war against Europe. We need to stop giving China our money. I deliberately try not to buy any Chinese products, if possible. I have a Renault Zoe, not an MG4 for this very reason 😢😢
Trump said Macron must drop his "unfair" digital tax or "we’ll be taxing their wine like they’ve never seen before.” Guess who backed down. China needs to export to the rest of the world more than we need to export to them. Tariffs work.
Worst comes to worst they are stuck with a surplus of supplies that their consumers can purchase at a huge discount. Meanwhile here in the west, we are patting each other on the back on how we are teaching China a good lesson while our shelves run bare and prices are inflated to the extreme chasing what few supplies we have left. Good job.
India, Pakistan, Australia, New Zealand, Mexico, Cambodia, Indonesia, Thailand, South American and African countries and many more. There is a lot of "the rest of the world." Cuba has a lot of very old fashioned cars, stuck in the fifties and sixties. Which places are going to get stuck in the twenty-twenties with a bunch of old fashioned ICE cars?
Q: Why is China such a threat? They are: A1: smarter; A2: better educated; A3: more disciplined; A4: less addicted; A5: wealthier; A6: less neurotic; A7: more agreeable; A8: healthier; oh! Did I mention “smarter?”
They have more wisdom.
Beside all you mentioned above, the main reason why China is such a threat is because america said so!
@@esphilee The wise have a strong/unbreakable moral foundation.
😅👍
Average Chinese IQ is similar to other East Asian countries like Japan and Korea, about 105 +/-. The Chinese being vastly better educated on average is what makes the difference in converting potential brainpower into researchers, scientists, engineers, doctors, technicians, and efficient workers. That is, the Chinese are doing a great job of finding talented kids and nurturing them into high achievers. Education changes a person's destiny, and on a national scale of 1 billion people, changes the fate of a nation and the world.
China never "copies." China *learns* and *innovates.* China *improves* on what the West does.
Great point!
Every country 'copies' from the best. When China becomes the best, do you think that the West would not 'copy/steal through espionage' from China? History shows that the West had 'copied and stolen' from China in the past.
China copies, at first, although in some industries, they were doing assembly of foreign designs or licensed production. China builds an exact copy to understand how a thing is built, then they incrementally improve. This is typical of all industrial development, copying before improving. It's hard to improve something that you don't understand. The key difference is that the Chinese market is so large, they can produce big numbers to address small inefficiencies.
@@ZweiZwolfyou think your country don't steal ideas lol
That is basically how humans learn. That is how the baby picks up his/her mother tongue and every things else later in life.
After the Lebanon pager incident I no longer want to risk western products if I can. I don't know if I have an item Israel had tempered with which might have skipped it's intended destination.
I worked in Hong Kong Air Traffic Control 98-2001 and helped to open the new CLK airport.They built that airport from scratch,plus motorways,3 bridges,rail link, tunnels and a train stations in about 7-8 years.They have continued to expand with a third runway,huge terminal and aircraft parking in recent years.
Meanwhile in those 25 years the UK hasn't done anything significant as far as increasing runway capacity at the main London airports.
The point is that they are forging ahead while here we are just shutting everything down.
Dear Dave, China’s labour has been considered expensive as early as 2010. You may need to update your perception. For example, coastal provinces unskilled labour starts at around 600-1000 usd in China, and in Indonesia it’s about 350-500 usd. These are numbers I deal with for my businesses in those 2 countries. What most people who don’t actually handle commercial parts of a contract don’t understand is the DDP cost is king, in incoterms DDP means Delivered Duty Paid, best explained as Cost to Customer warehouse so Net Cost to end customer is just add operations and logistics to end customer. Due to China building insanely vertically integrated supply chains, economies of scale and highly efficient labour, the DDP cost of China production is still much lower than Indonesia. An example would be Fabric Mill in Indonesia charging us $3.50 per yard (yes I don’t know why textiles still deals in banana units) ex-works (we pick up at Mill and still have to add delivery to our factory) while DDP China Mill to Indonesia CM (Cut Manufacture) factory is around $2.50. That dollar difference can go into million bucks difference on large orders so really labour costs is these days not at the top priority of consideration for people like me who is doing manufacturing in several countries.
The fact of the matter is that China has been de-risking from the US and EU for at least a decade, competently and successfully.
They have invested massively and smartly in developing new markets outside of the west, e.g. their biggest trading partner is ASEAN, not the US nor the EU.
They have successfully broken into the newest and most technological advanced industries, e.g. green energy, EV, aviation, communication, space, semiconductor, quantum computing, AI, biosciences, etc. etc. China can live without the US and the west; it would be a bit painful but manageable. The US and the west sure as hell cannot live without China. Their societies are not accustomed to the notion of living smaller. Without imports from China, these societies will simply fall apart.
Great analysis and thanks for the compliment
When they went to innovate is the sight that they are derisking from the west technologically.
👍👍👍👍👍
Without Chinese products, the West would see at least +10% inflation as supply chains add extra steps with slight processing. For example, a Vietnamese factory might sew 1 button on a shirt and add a "Made in Vietnam" tag. The bigger issue is that China can retaliate HARD by choking supplies that the West needs, and the Gallium / Germanium / Graphite controls are just a taste of what China can do. .
@@ZweiZwolf 👍👍👍
Great video Dave.
A few points, so remember China was about the 8th poorest country in the world after WW2 and they needed all the help they could get. They were only just getting off their knees in the 80's when VW turned up.
It wasn't so much copying, the western manufactures could sell tariff free in China if they entered into a joint venture with a local company and agreed to a technology transfer. They didn't have to do this.
The German car manufactures, and I'm sure others, never produced their best technology in China. In fact you could argue they helped encourage the Chinese to develop EV's, as the stuff being sold to them was the most polluting old technology available. One great example VW made the Santana in China for almost 40 years, think they only made it for about 4 years in the west. Selling old out of date cars like this really helped spur them on to find less polluting alternatives and hence them turning to EV's. Another example is the fact that Audi's newest design concept doesn't have the 4 rings on the grill as it is so tainted there.
So VW was making 50% of its profits on 40% of its world sales in China, this clearly tells you they were making a small fortune out there selling ancient technology. I believe western brands were about 65% of the market and are now down to about 25% of an admittedly larger market now.
Interestingly less than even 5 years ago the Chinese consumer was more reluctant than us in the west to buy Chinese made products, preferring western brands. This has now changed and they can't believe how dated the western brands are, with the exception of Tesla, compared to the local stuff. To give you an idea VW has to sell a high spec ID3 for about £12,000, with superior Chinese software as the locals wouldn't put up with what we get in our ones.
Theres a channel called Inside China Auto by a Brit who does some good videos on Chinese cars and has just, at the time of posting, released one from the Guangzhou motor show.
Very true. They were buying old model like VW sonata for decades.
I bought a BYD Seal in Australia, this is the best car I have ever driven in my life.
I have sold my former Toyota Corolla, and I don't want to drive an ICE car anymore.
there is a narrative that China learn from the West. except this isn't true, the first country China made a deal with is Japan. regardless of if western companies invest in China, China would have gotten all they need in advance manufacturing from Japan.
@@lagrangewei This is not true. China has their own base even in the 60s when it was considered poor, but always having excellent engineers and technicians. They OBSERVED developed countries but were able to developed and perfected their own trucks, cars, machines, tools.
@@peterk5981 I believe that China did learn from Japan and the West. There is no harm in learning from those who are better than you.
Great analysis. My father told me in the 1960s (he was state engineer in malaya) that within 30 years the Chinese would rule the roost as they were brilliant engineers and hard workers. He was a bit out with the date but right about the outccome. Tarrifs are foolish. They will not work. Cannot see sir keith starmer grasping this fact.
I think your father was right
I remember back in the 1990s thinking this was it this was the last chance for the west to turn things around when it came to a rising China
In 1998 around mid 60s of the factories in China still had foreign ownership
By 2008 that number dropped to mid 30s
And that was before the US subprime crisis cause the shuttering of 100 thousand factories put 27 million people out of work in China. Most never went back to the factories to work
Question becomes where do you put the economic/competitive advantage one country had over the other
Definitely in the 90s the USA was dependent on China for its goods and that’s when the average westerner first started to hear about trade deficits and China holdings of US debt
EU tariffs aren’t applicable here and I believe Starmer is courting Chinese brands to set up shop in the UK providing jobs. Also a much more generally clean energy mindset and action plan than their predecessors, particularly Sunak.
@@markbennett6658
Chinese EV companies
(not Chinese bought companies like Volvo/Polestar)
sold 300k vehicles in the EU in 2023
Most people don’t know 30 million cars are sold in China every year.
Of those 8 million were EVs last year and projected 10 million EVs this year
That still leaves 20 million ICE vehicles sold in China every year
many of which are made by US and European Legacy car manufacturers
China could put the final nail in the coffin, for many of the automakers…
cite over production, national security risk, fears, threat etc etc
But then we are lucky they don’t think in zero-sum game type of ways or else they could bankrupt a lot of companies
Heck most people don’t know it’s EU multinationals whose high flying stocks are in their stock portfolios/ pensions who are making the lion share of the profits exporting their goods from China back to the EU
Inflating that EU trade deficit to China
Which btw pales in comparison to the 500 billion USD …(EU companies based within China )
make selling their goods to Chinese consumers every year
The EU is just to duuuuuum…to see China is their market
Btw if you want manufacturing to go back to Europe
You need to build the factories, build the infrastructure, give financial incentives, tax breaks, educate the workers build the educational facilities etc etc etc
Meaning all that cost money
Meaning most Europeans need to be happy to pay even more taxes and pay even more for their European made goods
So that some a Europeans can have manufacturing jobs
@markbennett6658 that's pure fantasy, the UK and the US are locked step about China, and the trouble making by US NGO,s with UK help in 2019 in Hong Kong which will never be forgotten
Sunak is both a Brits and an Indian, we all know how he thinks 😂@@markbennett6658
Ursula von der Lying is one of the most stupid politicians in the world.
She's the most successful politician in Europe. The rest of the EU politicians are the most stupid animals in the world！
She is a joke.
I think China thinks she is brilliant.
UvdL is a shrewd politician who has been doing an excellent job for America.
She is just a cia sponsored muppet. No wonder eu is collapsing and get vampired by america
David, listening to you is the next best thing to listening to David Attenborough 😀
I have been telling people this for a long time. Businesses wanted to use the low cost manpower of China. They bacame masters and they were faster able to switch to the new technology, compared to the dinosaur businesses stuck in the way they make things. The Chinese have also become richer and so are not necessarily going to stay cheaper.
Even Tesla and Apple make many products in China.
This was a great as well as very well explained and timely.
I believe the factory out there is Tesla's most efficient.
And I think Apple tried to move some iPhone production overseas but failed.
Chinese labour lost if cost competitiveness about 20 years ago, however their factories are now, generally, the most hi-tech and competitive in the world.
They will maintain their price competitiveness by lowering costs with AI automation.
@@jasonmugridge Apple tried to move iPhone production to India, but the reject rate was extremely high and overall efficiency was low. That said, Apple should definitely move all US-bound iPhone production out of China to India, solving American "national security" concerns, and just price accordingly.
Very illuminating and enlightening video void of the usual bias trope. But sadly there are only a handful level-headed intelligent prople like Dave around to shine brightly in the darkness of today. ❤from Indonesia
The writing on the wall came in the 1960s. The British Motorcycle industry dominated the world but didn't change.
Yes it’s all I the history books for all to see
Harley-Davidson is still dominant in the US, for now. This despite CF Moto and others making vastly superior motorbikes at much lower prices. It's really kind of shocking how much people will pay for an objectively poor motorbike and the ill-fitting accessories to match.
Thanks for the eye opener, Dave
If EU were innovating and stand for right things and not be lapdogs of Israel and USA,they would have progressed
“Hoisted by their own petard” comes to mind!
Historically, China has produced amazing stuff. So it’s no surprise they will do it again and again.
HOORAY! At last, good, solid content with which I never once disagreed, even wearing my sceptical, critical appraisal hat. Listen to the criticism of yesterday's content, Dave, and take it on! MORE OF THIS STANDARD DAVE even if it means dropping the need to put something out every day. Quality is king!
Best episode to date, Thank you,
I truly admire your analogy of COVID 19 with Tariff! I need to say no more!
Every coubtry learned frim each other and made improvements. Startingbwith the steam engine.
China did learn from the west west overtook it, and the west can't accept this fact !
An excellent study Very well done Dave.
Re-freshening to see someone who actually really knows what is going on.
In the West the fundamentals and principles that made their manufacturing and engineering powerful were readily discarded over the pursuit of short term profit and gains. The C-Suite of these companies have known for a long time what the Chinese were capable of and yet stayed the course and are now feeling the consequences - well the workers and local economies are anyway. This is NOT to say that Chinese companies can't fall into a similar trap if not careful.
Exactly
Chinese goods aren't "cheap", money printing inflated prices in the west making Chinese goods more attractive.
You are on the Pulse spot on , Go China . 🌟🥰👍
Really interesting, thanks Dave.
Great video, explaining reality. Listen and learn some facts!
why the west not try to compete with China, instead appy tariff?
Legacy autos are status symbols: status is inversely correlated with usefulness. Ice autos are pretty much useless, so as status symbols… they are perfect!❤
Very interesting video.Thank you Dave.👍👍
Buy shares in BYD and Geely. I have. There is a Brexit benefit for MG in having the London Design Centre designing British cars for SAIC, the Chinese manufacturer, to build. Trump is an isolationist - good more for the rest of the world.
What rule would have stopped the London Design Centre doing work for other countries while we were in the EU?
@@malcym3394 It's the MG Design centre - they only work for MG.
@@steverichmond7142 Still the same point - nothing in EU membership would have stopped a UK company designing for anyone in a nn-EU country. I can't see that it's a Brexit benefit.
Because the UK is not in the EU the tariffs do not apply to the UK. MG's would be far more expensive if they were subject to EU/Chinese tariffs. My point is that we get to enjoy British design on cheap(er) cars.
@@steverichmond7142 I'm not sure why you keep changing your point. I agree that, being out of the EU we're not affected by any EU tariffs on Chinese cars. But you originally said "There is a Brexit benefit for MG in having the London Design Centre designing British cars for SAIC, the Chinese manufacturer, to build." As far as I'm aware, having the London Design Centre designing British cars for SAIC has got nothing to do with tariffs on the imported vehicles. So my point remains - nothing in EU membership would have stopped a UK company designing for anyone in a non-EU country. I can't see that it's a Brexit benefit.
Anyhow, it seems there's little point in continuing the discussion other to say that I own an MG5, made by SAIC Motor (more correctly, the SAIC Motor Corporation Limited) so enjoy the cheaper prices China offers (although to me, £35k doesn't seem "cheap"), and have nothing against Chinese imports or, indeed, UK companies working for Chinese companies.
As Dave points out in his video, all we're doing is transferring our knowledge to the Chinese, further helping them acquire knowledge and understanding. As he rightly suggests, the West shot itself in the foot. Thank you Margaret Thatcher for your legacy of offshoring and de-industrialisation instead of using the North Sea Oil revenues to rebuild our national infrastructure (which slipped as a result of paying for the two World Wars) and to re-equip our manufacturing sector. We had one chance - and she gave it away in tax cuts.
And, of course, massive thanks to David Cameron and Boris Johnson for taking us out of Europe. In what has become a cliché - the only country ever to inflict trade sanctions upon itself.
There should be plenty in there to maintain a discussion for a month or two :)
A good episode thank you. I do wonder when people will start to loo at other parts of the 'cycle'. If you take jobs away from people in the west, how do they afford to buy the other products? I am not saying that we need to stop the cheaper products(I don't think we could anyway), no what I am saying is that producing the products is only one part of the cycle. As humans we need to look at the complete cycle.
The Yellow Perill ghost is comeback again, folks.....
An old man trying to be relevant.Can I ask if this guy has ever been to China?
Nice new background dave
ayyy, someone's upping their thumbnail game 🙌😂
If i close my eyes, John Cleese is speaking.
I could see that.
China provide cheap goods that we all enjoy ....go ..go...go..CHINA !!!!!!
Why is china despite offering a good option for cheaper goods for european consumers become a threat to europe industry?
Dave take a look back to yesterdays video about the doors please, the reply I left you it's in the under attack video, cheers.
Can't compete why?
Well, the explanation is not quite correct.
Take the example of Apple.
What sets Apple apart from the other companies (at least in the early days) is the core technology.
These are things that CAN *NOT* be copied.
It isn't like a piece of furniture. You simply CAN'T copy the core technology. And neither would Apple teach the Chinese (or anyone for that matter).
So the advancement of Chinese phones has NOTHING whatsoever to do with copying.
And that's the same for all other technologies. These are things that you simply CAN'T copy.
And if the Chinese did copy Apple, Apple would have collapsed many years ago because the Chinese can always make the same thing with a lower price.
( PS. Copying of the low tech stuff is what they did in the early days. But the low tech stuff cannot explain what we are witnessing today. )
You are so outdated with what is happeming outside of USA. Your knowledge must have been collected during the 1980's
Every dog has its day,your days gone.
You are smarter than me
Spewing nonsense
Tariffs are paid by domestic consumers and not the exporting country, but they have the effect of raising the relative prices of imported products. Other trade barriers include quotas, licenses, and standardization, all seeking to make foreign goods more expensive or available in a limited supply.
In simplest terms, a tariff is a tax. It adds to the cost borne by consumers of imported goods.
👍👍👍
Are you not being a bit simplistic on this copying concept you are narrating here?
when you choise big cash that is raising your money for dominant currency around worlr think you can drop your amount now your swift account will fall shamefull thief if the world land thief too lol
More like Satan and its minions
From Asia , It is unfortunate that I have no idea the name of this Dude who spins CRAPS , BULLSHITS AND NONSENSES ABOUT CHINA .
IT SEEMS NORMAL THAT WESTERN PEOPLE ARE HAVING INHERENT BIAS AGAINST CHINA . ❤❤😂❤
What is the
China threats?
Ha ha ha
First time I havw thought you got it close to right but I think we suggest we just decoupele with China altogether with China atm
As long as your happy to go back to your old Nokia, and even then it might be a struggle to find a non-Chinese battery supplier.
@@jasonmugridgeat a huge price tag
That’ll make him feel genuine Brits with his chin up.@@barrieroberts75
You can, but if you are ready to ride on a horse and start doing agriculture. Even then you don't get fertilizers.
Do it! Just don't be surprised when most of industrial production grinds to a halt due to a lack of Chinese intermediate goods and components, much less affordable ones. It would take the better part of a decade for the West to build up basic capabilities to replace a fraction of what China has at significantly higher costs.
What BEVs need to survive is massive subsidies and legislation that tips the scales against I.C.E vehicles. Without those, electric vehicles are dead in the water.
What subsidies ? 😂
Minimal compared to oil subsidies.
America fought multiple wars to ensure oil flow and low prices for ICE cars. The money spent during Desert Storm alone would cover several times over than what any country might spend on EV subsidies.
The Chinese have not gone "all in on EVs".
It’s true they are making ICE vehicles but the home market is pretty much full EV.
@Yorkshireasaurus China is just over 50% when you include plugin Hybrids.
@@stevenjones916
In China 30 million vehicles are sold in the country every year
Last year 8 million of those vehicles were EVs. While this year 10 million of those vehicles are expected to be EVs
Im hearing whispers that would might even see 11 or 12 million
That still leaves 18 to 20 million ICE vehicles many of which are from these Legacy automakers from the EU and the USA
So it will probably be less than 50%
But Chinese EVs still have room to grow in just China alone
when it comes to the trade war
China has just not taken the zero-sum game approach the west has taken against it…
It embarrassingly has not even had to take out its big guns
Well not yet
@@stevenjones916 Those Chinese Extended Range EVs typically have well over 100 kms all electric range, whereas US plugin hybrids are barely 10 miles range and can't sustain highway speeds or commutes.
@@Rednickincell Chinese car market is closer to 25 million cars, and they are now 50% EV sales and still growing. Within 3 years, NEVs will be something like 80% of the Chinese market, 20 million total. Of those, probably 12 million will be extended range EVs with 100 km all electric range and the inexpensive public charging infrastructure to support them, while 8 million might be BEVs averaging 400+ km electric range. China has already passed Peak Oil and may have hit Peak Carbon this year, and their reduced consumption is driving global oil prices down.
Tariffs are not normally the answer, but China are helping Russia wage war against Europe. We need to stop giving China our money. I deliberately try not to buy any Chinese products, if possible. I have a Renault Zoe, not an MG4 for this very reason 😢😢
America
A-Bombed the Japs to Help Europe , Do you Even know what Russ/Ukrz War is ABOUT ???
well! so does eu. but they don't tell you that hehe
Us destroyed your gas pipeline 😂😂😂 you are slave to usa
@@markrozee
U r a 🤡 ! 🤣🤣🤣
too bad renault junky car...
Bot
My inside leg measurement is 33” I bet bots don’t tell you that Charles nor can they spot that name
Trump said Macron must drop his "unfair" digital tax or "we’ll be taxing their wine like they’ve never seen before.” Guess who backed down. China needs to export to the rest of the world more than we need to export to them. Tariffs work.
Worst comes to worst they are stuck with a surplus of supplies that their consumers can purchase at a huge discount. Meanwhile here in the west, we are patting each other on the back on how we are teaching China a good lesson while our shelves run bare and prices are inflated to the extreme chasing what few supplies we have left. Good job.
Asia and the rest of the world buy from China don't forget the "West " amounts to just 12.5% of the world's population
India, Pakistan, Australia, New Zealand, Mexico, Cambodia, Indonesia, Thailand, South American and African countries and many more. There is a lot of "the rest of the world." Cuba has a lot of very old fashioned cars, stuck in the fifties and sixties. Which places are going to get stuck in the twenty-twenties with a bunch of old fashioned ICE cars?
Hope you don’t use one of them thar IPhones - cost will double with tariffs, but you will happily pay more💰
🤣🤣🤣🤣🤣