this post was submitted on 08 Mar 2026
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A loss of overall competitiveness of the local companies is actually a well known and studied problem with using tariffs and import restrictions to protects said local companies.
So any competent government which desires for their local companies to survive and prosper will seek different ways to strengthen then which don't suffer from that problem. The Chinese government is doing just that, the US government is not.
By all indications, US politicians are spectacularly incompetent and/or are following a strategy of burning the future of US companies for a short term boost in the money they yield for current CxOs and investors.
But what about the majority of cars sold in the US which belong to foreign manufacturers, and what's your answer for why none of those nations are able to compete with what China is doing either?
Apparently no other government in the entire world is "competent" by your standards, or perhaps it's about one nation leveraging their position and influence in order to build a monopoly and not about competency at all.
I can tell you that, at least for Europe, they're doing pretty much the same thing as the US, only it's higher tariffs rather than blocking the Chinese products.
The effect of special protectionist tariffs on the competitiveness of local companies might not be as strong as for outright blocking of the competing foreign products, but it's in the same direction, which is why recently even Tesla (which are shit at the actual building cars part of the business) were wiping the floor on EVs with massive European car making businesses which had enormous expertise in actually making cars and decades to evolve EV tech and failed to do so.