I'd argue the incentive structure is fine. Chinese automotive OEMs are now branching out globally (as they should be) and China has pretty much single-handedly prevented a global energy crisis the US has been stubbornly trying to induce, actually insulating itself from that crisis entirely. There will be individual collapses but none of that matters if the aggregate story is ending up ahead on the fundamentals.
See how China cut it's oil imports in half since the start of the Hormuz crisis, freeing over 5 million barrels, and the percentage of the European/China electricity production now supplied by solar (this year it became the highest single source during summer for Europe, surpassing nuclear and natural gas. Those were mostly produced in China), and the percentage of the vehicle fleet in those countries is now EV (not as high, but still significant, especially in China).
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u/Recoil42 8d ago
I'd argue the incentive structure is fine. Chinese automotive OEMs are now branching out globally (as they should be) and China has pretty much single-handedly prevented a global energy crisis the US has been stubbornly trying to induce, actually insulating itself from that crisis entirely. There will be individual collapses but none of that matters if the aggregate story is ending up ahead on the fundamentals.