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China Opens Door For Tesla and Other Foreign Automakers To Produce Electric Vehicles (electrek.co)
Despite its strong protectionism laws in place that require any automaker wanting to establish production capacity in the country to partner and share its technology with a local manufacturer, China is proposing to relax laws. In an attempt to accelerate electric vehicle production in the country and fight its air pollution problem, China is now proposing to relax those laws for what they call "new energy vehicles," a.k.a. electric vehicles, in order to attract more foreign investments. From a report: The new rules are expected to open the door to Tesla and other automakers who recently expressed desires to establish manufacturing capacity in China to produce electric vehicles. The National Development and Reform Commission and the Ministry of Commerce released the new policy last week, and it is seeking public comment until next month. The new rules could go into effect soon after.
Protectionism works just fine - the 90 million chinese workers employed in industry as a testament to that.
Free trade only raises the standard of living of all parties if everyone is playing by the same rules - asymmetrical trade relationships don't work.
If Telsa or anyone else is naive enough to go through with this type of deal, what is Trump supposed to do about it?
Trump's plans are (1) to end the asymmetrical trade deals that the last 4 four presidents have given us and (2) push to eliminate the existing tax code provisions that make it more economical to move manufacturing offshore and then import back in to the US. The US is pretty much alone in having such an inverted tax structure.