It’s over – China Is About To Destroy US Automakers

By Joel Wong

The discussion features Michael Dunne, an expert in the automotive industry with extensive experience in Asia, particularly China. He provides insights into the rapid advancements in China’s automotive sector, especially in electric and autonomous vehicles. Key points include:

China’s Growing Influence: China has become a significant player in the global automotive industry, particularly in electric and autonomous vehicles. Despite their limited presence in the U.S., Chinese companies are making substantial progress.
Michael’s Background: Michael Dunne runs Dunne Insights, advising on the future of cars, focusing on electric batteries and autonomous technology. He has lived in Asia for 26 years, giving him a deep understanding of the region.
Shift in Strategy: Historically, global automakers focused on manufacturing in China for the Chinese market. However, in recent years, the strategy has shifted to manufacturing in China for global markets due to slowing domestic growth and falling margins.
China’s Export Dominance: China is now the world’s largest car exporter, surpassing Japan, with high-quality, low-cost vehicles and advanced technology.
Government Support: The Chinese government’s “Made in China 2025” initiative has significantly boosted the country’s capabilities in electric and autonomous vehicles, aiming to surpass Western technology.
Autonomous Technology: Chinese companies are making significant strides in autonomous vehicle technology, driven by substantial investment and government support.
Comparison with Tesla: Tesla’s approach to self-driving technology relies on vision-based systems with AI, while Chinese companies like WeRide use a combination of sensors and HD maps.

Michael underscores the critical importance of understanding these technological advancements, as they could dramatically reshape the global automotive industry. He points to China’s preferential treatment of Tesla as a prime example. China’s strategic embrace of Tesla, allowing the company to establish a wholly-owned Gigafactory in Shanghai, stands in stark contrast to its typical requirement for foreign companies to form joint ventures. This exception highlights China’s deliberate efforts to attract and nurture cutting-edge automotive technology.

China’s preferential treatment of Tesla stands in stark contrast to the US’s aggressive suppression of Huawei’s 5G technology. This dichotomy highlights a strategic shortsightedness on the part of the US, reminiscent of a child unable to resist the immediate gratification of a marshmallow.