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The reason there were 500 manufacturers in the first place was the enormous subsidies.

The Chinese government strategy is to fund a massive number of attempts and then suffer a huge number of failures and consistent end up with far too much production capacity leading to a large number of unprofitable companies.

It’s not a terrible strategy if you can dump vehicles elsewhere. It may or may not work if you can’t.

It’s not stupid but it’s probably a bad strategy.




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