Subject: Anti China Sentiment
Here in the U.K. the press have had a consistent narrative on electric vehicles from China in the last year.

There is a begrudging acceptance that Chinese electric vehicles are high quality and value for money. However, we are told that the Chinese state, has subsidised its electric vehicle industry and Europe will now be “flooded” with cheap electric vehicles.

The price point in the U.K. for BYD is quite high and the strategy appears to be to enter the U.K. market as a premium product and make very high margins, which helps against fierce price competition low margins in the home Chinese market.

The EU is working to demonstrate that BYD has been unfairly supported by the Chinese government. I thought that governments in most countries try to help certain industries.

The EV offering in the U.K. from the legacy car makers from around the world appear to be inferior to BYD. Maybe Tesla is one exception. Either too expensive, or poor range, or minimal quality (basic interior for example). BYD appears to have superior EV technology and a large cost advantage. Great product offering that consumers want, even before they has really established a brand.

I am potentially biased in favour of BYD, as a shareholder. However, and without any real evidence to support my hypothesis, I believe that BYD has not received any more government support than other countries provide in this space. But rather, the Chinese BYD has grown up in a tough neighbourhood where you show up and produce the goods, or you die. Other advantages are perhaps an education system that has resulted in stronger math abilities for example. Perhaps even the peculiar abilities of the BYD CEO have played a part in creating a product, very needed by the world, which is superior to most legacy auto makers. To me, the Germans, the Japanese and the American car companies need to do better.

There appears to be some irony in the state support argument against BYD and China, from nations that seem to think their best defensive is protective tariffs. Free markets? Isn’t like sending mummy into complain to the teacher that little Jonny came in bottom of the class because the top kid worked harder? And making unsubstantiated claims of extra tuition from the class teacher and unfair marking.

I don’t know how it all plays out. But certainly terms like “flooding the market with cheap…” sounds xenophobic to me.

What are your objective views on this topic?