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| China-Japan-Koreas |
| CTH Deep Dive on China's Expanding EV Product, The Real Profit Motive, How Europe and Now Canada Are Sucked In |
| 2026-01-23 |
| My travels also took me to southeast Asia and again those damned BYD’s were all over the place. In Thailand, Philippines, Malaysia, Vietnam, these BYD’s were everywhere, maybe even 30% of total vehicle traffic at times – most certainly well over 50% of all EVs – and there are digital billboards for “Build Your Dream” (BYD) all over the place throughout Asia. Australia is stocked full of those things, and the middle east, yup, even there too. It became increasingly weird to notice. So many were visible I was wondering how the heck China can mass produce and ship this many cheap EVs so fast. Then as serendipity would have it, I ran into a Chinese guy, professionally an actuary, in a hotel restaurant. He explained to me that China produces the BYD not to make money from the automobile, but rather to sell the carbon credits the automobile generates within the auto industry. The actual value to Beijing is in selling the carbon credit worthiness to various automakers who are fined or penalized by their government for producing gasoline powered vehicles. BYD is, in essence, not a car per se’, but a mechanism to generate a carbon credit certificate that can be sold to other car companies. It’s the carbon credit certificate that generates the revenue, not the sale of the vehicle. As my dinner guest explained, the auto insurance industry was having fits about this because the actuaries couldn’t accurately put a correct figure on the cost of the insurance warrantee within the industry (that’s another story). The bottom line is that China is manufacturing a product to create a carbon credit certificate in response to the demand for carbon credits from all the world auto-makers. Any nation that has a penalty or fine attached to their climate goals is a customer. Those are nations with fines or quotas associated with the production of gasoline powered engines if the auto company doesn’t hit the legislated target for sales of electric vehicles. In essence, EU/AU/CA/RU/ASEAN car companies buy Chinese car company carbon credits, to avoid the EU/AU/CA/RU/ASEAN fines. The Chinese then use the carbon credit revenue to subsidize even lower priced Chinese EVs to the EU/AU/CA/RU/ASEAN car markets, thereby undercutting the EU/AU/CA/RU/ASEAN car companies that also produce EVs. Big Panda brilliantly exploits the ridiculous pontificating climate scam and has an interest in perpetuating -even emphasizing- the need for the EU/AU/RU/ASEAN countries to keep pushing their climate agenda. China even goes so far as to fund alarmism research about climate change because they are making money selling carbon credit certificates on the back end of the scam to the western fear mongers. This is friggin’ brilliant. My dinner buddy was in the business of identifying the cost/benefit equation between the climate change fines and the prices Big Panda could charge for the carbon credit certificates. If, as an example, Brussels dropped the quotas for EVs, China would need to lower the price for the carbon credit certificates. So, Beijing wants Brussels to make sure they don’t drop the quotas. See how that works? The climate change alarmists are helping China’s economy by pushing ever escalating fear of climate change. You just cannot make this stuff up. What does the outcome look like? Well, in this example we see thousands of unsold BYDs piling up in countries that emphasize climate regulations with no restrictions on the import of EVs (which most don’t even manufacture), which is almost every country. Big Panda doesn’t care about the car itself; they care about generating the carbon credit certificate to sell in the various carbon exchanges. |
| Posted by:NoMoreBS |
| #4 |
| Posted by: trailing wife 2026-01-23 20:12 |
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| Posted by: Grom the Affective 2026-01-23 15:26 |
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| Posted by: trailing wife 2026-01-23 15:17 |
| #1 |
| Posted by: Grom the Affective 2026-01-23 15:09 |