Let’s look at what the EU found after investigating two of China’s largest EV companies: BYD and Geely
Their investigators turned up subsidies everywhere they looked. Lithium processers and battery makers were told by the state to sell to EV companies below market rates, they said,
Important to note here that BYD is the leading battery maker in the world. They’re also a leading lithium processor, in fact setting up lithium processing plants as far away as Chile. BYD is notorious for vertically integrating across their entire supply chain, so at least for BYD this claim makes zero sense. Berkshire Hathaway owns 9.8% of BYD.
while the car companies were exempt from battery consumption taxes.
This refers to the 4% tax on batteries instituted in 2015. Except… “But cleaner batteries including mercury-free, nickel-hydrogen, lithium and solar cell varieties will be exempted and taxation on lead storage batteries will be postponed till Jan 1, 2016.” Is the EU perhaps referring to the lead-acid batteries that feature in BYD and Geely’s hybrid products? As far as I know those should be taxed, but maybe I’m wrong and that was in fact a tax subsidy. Either way, lithium batteries are exempt from this tax.
The firms issued green bonds that government-run financial institutions were ordered to buy,
Buying corporate bonds really is subsidization and not something you’d expect to see in free market economies.
Let’s look at what the EU found after investigating two of China’s largest EV companies: BYD and Geely
Important to note here that BYD is the leading battery maker in the world. They’re also a leading lithium processor, in fact setting up lithium processing plants as far away as Chile. BYD is notorious for vertically integrating across their entire supply chain, so at least for BYD this claim makes zero sense. Berkshire Hathaway owns 9.8% of BYD.
This refers to the 4% tax on batteries instituted in 2015. Except… “But cleaner batteries including mercury-free, nickel-hydrogen, lithium and solar cell varieties will be exempted and taxation on lead storage batteries will be postponed till Jan 1, 2016.” Is the EU perhaps referring to the lead-acid batteries that feature in BYD and Geely’s hybrid products? As far as I know those should be taxed, but maybe I’m wrong and that was in fact a tax subsidy. Either way, lithium batteries are exempt from this tax.
Buying corporate bonds really is subsidization and not something you’d expect to see in free market economies.
https://www.cnbc.com/2020/06/29/the-fed-is-buying-some-of-the-biggest-companies-bonds-raising-questions-over-why.html
https://www.nbim.no/en/the-fund/investments/#/2023/investments/fixed-income
Wait hold on…
Dirty, dirty subsidies!
https://goodjobsfirst.org/nevada-woos-tesla-plant-tax-deal-economic-benefits-prompt-debate/
https://www.seattletimes.com/business/tesla-gets-330m-tax-deal-for-nevada-expansion-truck-plant/
https://venturebeat.com/business/how-tesla-got-nevada-to-give-it-1-4b-in-exchange-for-a-giant-battery-factory/
Admittedly, now I’m a little confused.
Thank you for taking the time to put things in perspective.