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Comment by james_chu | Hacker News Reader

Why are Chinese electric cars seen as a threat to U.S. jobs and national security?

Job losses in US automotive industry, supply chain dependence which could pose a risk to nat sec if geopolitical tensions arise or China decides to restrict exports, technological dominance threatening to undermine US competitiveness, data security concerns if they collect sensitive data through their vehicles. Not saying I agree with any of these reasons, but just thinking out loud and trying to steelman.

I really appreciate your perspective that the United States could address these challenges by investing in domestic electric vehicle manufacturing, diversifying the supply chain, promoting innovation, and establishing a robust data privacy and cybersecurity framework. Unfortunately, it seems that the Biden administration has not considered this approach.

Why might that be? Is it because imposing tariffs is the least costly option compared to making investments?

There are only a few levers the American government has to pull to encourage the behavior they want. They can't at this point order companies to eliminate China from their supply chains. They can instead make it more painful to use China via tariffs and other trade barriers.

I also think there has been some domestic investment via the IRA, and I've seen government officials soliciting the construction of battery factories.

I think the problem is that as long as a Chinese supply chain is cheaper, any rational capitalist actor will choose that.

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