Written by Michael Thervil
Photographer unknown
In our previous article entitled “America & The Collective West Blocking Chinese Electric Vehicles” we informed the public about how the Chinese EV market is not only expanding but it’s expected to overtake the American auto market overseas, especially in China. With all Janet Yellen’s criticism of Chinese “Over Capacity” which is nothing more than code for “We can’t compete”, China has done anything but slow down the manufacturing and export of its electric vehicle market globally. The Chinese are successfully doing so despite the draconian taxes and tariffs put on them by countries like America and Europe.
To date, due to the technological advances China has made when it comes to the production and manufacturing of the electric car batteries, they have now made EV batteries even cheaper than they have before. This is something to consider when an electric car battery accounts for 30-35% of the total cost of a EV. With that being said, Chinese EV’s are now 64% cheaper both with the initial purchase of the car and over time than traditional combustion produced cars. It is currently estimated that by 2030 that 40-45% of the total amount of cars in China will consist of electric vehicles. With these projections American and European car manufactures will not be able to compete with the Chinese EV market.
Adding insult to injury, China has broadened their ambitions of dominating the EV market by expanding their production capabilities in both Mexico and Türkiye by building new factory’s. What comes with this expansion in manufacturing capabilities is China’s ability to produce cheaper electric cars in the local economy of both countries with no excessive taxes and no tariffs on their electric vehicles. Thus, rendering the Americans and the Europeans attempts to slow down China’s production of EV’s as nothing more than a bump in the road that ultimately ended as a failure.
Another sector that will take a hit from the global mass production of Chinese electric vehicles is the oil and gas market in general. Our projection here at VEDA Communications is that it won’t be a radical hit, but it will mostly be a hit that the oil and gas sector can’t ignore roughly around 15-20% (conservatively). This estimate is based upon the rapid speed of global production, consumer demand, future advances in technology concerning battery production, and push for the normalization of electric vehicles of any kind around the world. If China continues on this path it will result in two things: China securing its planned market horizons by solidifying its dominance in the EV market; and the further weaponization of U.S. led tariffs and sanctions and the strengthening of the Collective West’s trade and economic war on China.
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