Amid China’s struggles with excess manufacturing of various products, workers at a domestic auto plant are confronted with a tough decision regarding their employment.
According to a Tuesday interview with Nikkei, Lisa, a factory worker at the Li Auto Factory and a newlywed bride, stated that over 1,000 employees, including herself, were presented with the option to either resign or accept minimum wage until business conditions pick up.
The 27-year-old worker further noted: “We were told that our pure electric vehicle sales are weak due to the bad conditions, so the company has to cut production.” Speaking on the condition of anonymity, Lisa said if she fails to find another job, she will be “starving to death.”
The goal is to stop China from trying to own the EV market, which is what they’re trying to do by subsidizing export production.
Subsidizing export production is VERY different from subsidizing domestic production. The former is a type of economic warfare; the latter is a domestic policy mechanism. I know it’s nuanced but there is absolutely a meaningful difference.
That is their publicly stated goal, but that doesn’t mean it’s the policies true objective, or it’s only one.
I’m not providing any moral, or value, judgement on any of this, nor am I claiming to know what went on inside the halls of power when crafting this policy that isn’t public knowledge.
I’m simply stating that there are many “objectives” that this policy might be intended to achieve, other then what’s been publicly promoted.
Which is pretty much true for any piece of legislation or new regulations that get processed through bureaucratic machinery with many competing outside influences and pressures.
FWIW I’m not a free trade economic liberal. I support protectionism, when it’s justified. Especially in cases where it protects workers, or counters hostile policies e.g. dumping.