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Comment by JackFr | Hacker News Reader

Much of the difference in the BYD cost is accounted for by a 27% tariff on the cars, transport and increased costs for warranty and compliance certification costs, as well as likely subsidies in the domestic market.

Of those, you’ll see that only transport costs are a function of “capitalism” the rest is government.

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If that were true, Euro and US models would cost the same in China as they do in Europe - after all they dont have import tariffs, and all the stuff you listed - but they're priced in accordance to the local market. As for subsidies, afaik the only difference between how the Chinese do them and the EU does them, is in China, the manufacturer receives them rather than the customer afaik.

But I didn't want to get heavily into cars - its a clear and omnipresent feature of modern economics that things cost different amount of money between economic blocks in ways that's not explainiable by the fundamental cost of goods and services rendered. And not only economic blocks - prices of existing concrete (like an apartment that is just there, and been there) goods can increase wildly over time - which in industrial terms would mean society getting less efficient.

I think it's an important thing to discuss, considering the current system's mandate to lead is based entirely around its ability to bring prosperity to the people.

If it's objectively outperformed by other systems, perhaps the system has to at least face the pressure change or be replaced.

The UK doesn’t apply tariffs on Chinese cars yet the situation is similar here.

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