Canada tells Chinese automakers to ‘build where you sell’ when it comes to electric vehicles
https://www.ctvnews.ca/politics/article/canada-tells-chinese-automakers-to-build-where-you-sell-when-it-comes-to-electric-vehicles/Open linkView original on lemmy.zip
Sounds like a fair condition for increasing the sales quota beyond 49k.
But cars are more expensive when we have to pay a living wage :'(
It's a very old myth that Chinese labor is cheaper. That was true 25 years ago. It's a reach to call UAW skilled labor.
https://www.aiu.edu/innovative/the-myth-of-cheap-chinese-labor-unpacking-a-complex-reality/
This article doesn't refute that Chinese labor is cheaper than the rough equivalent western worker. China has been upskilling its workforce, and has invested in a lot of manufacturing-specific infrastructure and ecosystem, but the individual workers for any given skill level and education level still gets paid significantly less than a similarly situated worker in North America or Europe.
The workers assembling iPhones in China are both high productivity and low pay (on Western standards). Despite rapidly increasing pay, starting pay was still less than $4 USD/hour for the peak season last year.
And much of that is just the reality of exchange rates, but from the perspective of a multinational company, the exchange rates feed right into their bottom line. They'd prefer to pay Chinese wages over Canadian wages, especially if the Chinese labor is more productive/efficient.
In this case, the CCP also provides massive subsidies to them. If they did not build in China, all the money would dry up
Xpeng builds it's cars for the EU market in Austria.
Sooo many economists on Lemmy.
We should only build steam rollers in this country so we could squish the people who don’t want to pay living wages like human tubes of toothpaste
Mane I’ve had too much to drink today. Or mortar is the sweet spot. I don’t know.
Soylent Green!
They would stop being cheap if that were the case. They are able to build competitively in China because of huge government support. Building Overseas, they would become just another car maker.
Except that's not really the case. While EVs do receive some subsidies in China because there's a push to out ICE vehicles, they're cheap because they essentially make all the components and there's insanely high competition. There are more EV manufacturers in China than there are Auto-manufactuers in the entire rest of the world combined.
Most have nearly completely automated factories at this point, because that's the only way to compete. Others have found very specific niches early enough that it would be too expensive to develop the tooling to compete, like XMCG's current relative domination in electric construction vehicles.
The problem then being if any of them go international in production the number of jobs produced are pretty low, and either extremely high skilled requiring imported Chinese labor or extremely low skilled providing very little tax revenue.
There's also the history of Chinese EV companies really not vetting local or partner construction companies, resulting in awful PR and lawsuits.
Name one Ontario automaker that hasn't received huge government support. This industry sucks billions from governments every year, federal and provincial. China is estimated to boost automakers by $8B, peanuts.
Detroit automakers have seen >$88B in government support...so where are the affordable EVs? How many EVs do we make in Canada? Just this laughable POS @$75,000.
7,400 total sales worldwide.
Or... what?
Chinese companies build their cars in China for profit and strategic reasons. What plan does Canada have to force them to change this?
Not allow more than 50,000/yr. Exactly what we are doing now.
And how is that working out for Canada - one of the few countries to currently be in recession?
Canada has had economic slowdown due to US trade policies, but is not in recession. Have fun if you want to make shit up.
https://www.cbc.ca/news/business/recession-gdp-may-2026-statscan-9.7216352
Oh ya. The might of 30 million people.
You tell China!
Hahahahaha.
So China doesn't care about 2 million car sales a year?
You know we can tell China to just fuck off? Right?
And the population of Canada is over 41 million.
40 million colonialists. Sure.
The USA told China to fuck off and look what that got them.
Antagonizing China isn't a smart move after decades of relying on it for everything. First, invest into domestic production, then reduce imports from China. Otherwise you're just shooting yourself in the foot.
USA told everyone to fuck off, not just China.
Seems like a pretty reasonable request - if you want access to sell in our market, then you also need to create jobs in that market. They're not threatening China.
Canada has no obligation to just open itself up. China itself has historically had pretty extreme protectionist policies in place.
EU did this, and Xpeng cars are made in Austria by Magna, a Canadian company owned by a rapist.
Sounds like they need an anti-rapist clause.
In general though, it makes sense.