It’s common practice for less developed countries to impose higher tariffs to protect homegrown companies from foreign competition.
Goal is to nurture the fledgling companies/ industry. The risk is these companies won’t grow up
That makes no sense when their labor cost is so much lower. Tariffs are usually used by high wage countries to protect their own industry from low-wage foreign competitors.
Um… history shows otherwise. Just look at America’s tariff percentage vs. China’s. For lesser developed ones, they are even higher.
Unit cost of labor is cheaper doesn’t imply total cost of manufacturing is cheaper. Capital can make a labor more productive. Cost of manufacturing per unit = Material cost per unit + labor cost per unit + …
Elon musk is pure evil. Time for China to arrest him.
When are you going to stop Elon bashing?
Only when he becomes rich, divorces his current wife and get in bed with multiple wives.
Now itself, he wants 20 Million minimum, if multiple wives, how much he considers rich?
Does anyone believe material costs are higher in China? Does anyone believe China lacks capital to invest in making labor more efficient?
Can’t answer you, don’t know auto industry and cost situation in China. Just saying your conclusion that low labor cost means low cost of manufacturing is not true because cost of manufacturing has many components. And labor productivity matters.
Thanks for share this information with us.
Another competitor.
Why TSLA?
Someone Posted detailed info about TSLA which I can not reproduce, but linking the post
Model 3 killer: