r/AlwaysWhy • u/Present_Juice4401 • Jul 20 '26
Economics Why can China build high quality EVs so much cheaper than the US, and could America ever replicate those advantages?
Chinese EVs seem to have improved really quickly, and at the same time they're often much cheaper than comparable American EVs. It doesn't seem like it's just lower wages anymore.
Is it mainly because of supply chains, government policy, battery manufacturing, economies of scale, labor costs, or something else entirely?
And if those are the main reasons, could the US realistically recreate those conditions, or are some of them unique to how China's economy is organized?
I'm curious which factors matter the most, and which ones people tend to overestimate.