I had a song playing in my head when I read stats about Chinese development of their grid: "Я знаю, будет много чугуна и стали на душу населения в стране". I have my concerns about the state of American economy, but we've seen the outcomes of the approach the communists taking in China. It feels like Americans are running unstable ship that balances on the edge but eventually it finds its equilibrium. There is a method in this madness. At least I hope it is there.
The market self-corrects, yes, but it corrects toward the cheapest supplier, not toward the domestic one. Look at batteries. A decade of Chinese subsidy, and now the most expensive part of a Western EV, 30 percent of the cost or more, is a CATL or BYD cell. Detroit did not find an equilibrium without China. It found one with China baked in. Energy and compute are the next two cells in the same car. Nothing is finished yet, but it is dangerous for the West.
I had a song playing in my head when I read stats about Chinese development of their grid: "Я знаю, будет много чугуна и стали на душу населения в стране". I have my concerns about the state of American economy, but we've seen the outcomes of the approach the communists taking in China. It feels like Americans are running unstable ship that balances on the edge but eventually it finds its equilibrium. There is a method in this madness. At least I hope it is there.
The market self-corrects, yes, but it corrects toward the cheapest supplier, not toward the domestic one. Look at batteries. A decade of Chinese subsidy, and now the most expensive part of a Western EV, 30 percent of the cost or more, is a CATL or BYD cell. Detroit did not find an equilibrium without China. It found one with China baked in. Energy and compute are the next two cells in the same car. Nothing is finished yet, but it is dangerous for the West.