China Market situation and outlook

[SwTslaGrl]

China manufacturing firms plunge on foreign ownership plan
Shares in top Chinese manufacturing companies plunged Wednesday after Beijing announced plans to phase out ownership limits for foreign automakers, shipbuilders and aircraft firms.
The country will this year end shareholding limits for new energy vehicle firms such as those that produce electric cars, the National Development and Reform Commission (NDRC) said Tuesday.
China manufacturing firms plunge on foreign ownership plan

 

[Phrixotrichus]

China manufacturing firms plunge on foreign ownership plan
Shares in top Chinese manufacturing companies plunged Wednesday after Beijing announced plans to phase out ownership limits for foreign automakers, shipbuilders and aircraft firms.
The country will this year end shareholding limits for new energy vehicle firms such as those that produce electric cars, the National Development and Reform Commission (NDRC) said Tuesday.
China manufacturing firms plunge on foreign ownership plan

It`s about damn time!

 

[SwTslaGrl]

LIVE from the Beijing Auto Show, @TomMackenzieTV shows us the cars to watch Bloomberg Asia @BloombergAsia

 

[K_Dizzle]

LIVE from the Beijing Auto Show, @TomMackenzieTV shows us the cars to watch Bloomberg Asia @BloombergAsia

View attachment 296586 View attachment 296587

The Toronto auto show was exactly the same. The model 3 hat a ton of interest, crowds everywhere and you couldn’t even go into the car. The bolt leaf, i3 had crickets. It was pathetic really.

One thing to note is that a lot of people where asking questions about the 3. The question I heard where all coming from some negative bias FUD they have heard. Is Tesla actually building these? Was actually said a few times. I can’t wait to drive my 3 all over Canada within a month!!!!!

 

[Electroman]

There were many news reports yesterday on how Tesla booth was the star attraction in Beijing auto show with a ton of crown milling around, even while other ICE giants were doing their press conferences.

 

[RobStark]

Tesla could be collateral damage in Trump trade war with China

 

[neroden]

So, this is interesting. I'm expecting Tesla to set up its wholly-owned factory in China soon, now that that's legal (that law change apparently *did* go through). It looks like imports from the Shanghai Free Trade Zone where the factory is most likely to be may be subject only to the 15% tariff and not the 25% additional retaliatory tariff against the US, but even if they're subject to the 40% tariff, Tesla can still sell a lot profitably. (And can ship to Japan, South Korea, etc., saving on shipping.)

 

[Unicorn3]

The Special Management Policy for Foreign Investment in the Free Trade Zone (Negative List) (2018 edition) will be effective in 30 July 2018. Renewable energy auto manufacturer is excluded from the restrictions accordingly.

 

[neroden]

View attachment 314059

The Special Management Policy for Foreign Investment in the Free Trade Zone (Negative List) (2018 edition) will be effective in 30 July 2018. Renewable energy auto manufacturer is excluded from the restrictions accordingly.

To clarify, does this mean that Tesla can own a wholly-owned electric auto factory in the Free Trade Zone starting July 30?

 

[Cartegena]

So, this is interesting. I'm expecting Tesla to set up its wholly-owned factory in China soon, now that that's legal (that law change apparently *did* go through). It looks like imports from the Shanghai Free Trade Zone where the factory is most likely to be may be subject only to the 15% tariff and not the 25% additional retaliatory tariff against the US, but even if they're subject to the 40% tariff, Tesla can still sell a lot profitably. (And can ship to Japan, South Korea, etc., saving on shipping.)

How do you expect the wholly-owned factory will be financed?

 

[RobStark]

How do you expect the wholly-owned factory will be financed?

From Tesla profits.

Tesla doesn't need $5B cash up front.

And it doesn't need to be completely built before Chinese GF starts producing cars and battery energy storage.

 

[Unicorn3]

To clarify, does this mean that Tesla can own a wholly-owned electric auto factory in the Free Trade Zone starting July 30?

Neroden. Yes, Tesla can own a wholly-owned electric auto factory in the Free Trade Zone in Shanghai China. Since the air pollution in China is extremely serious especially in Beijing, I utmost believed that President Xi must do what he had said to change the country to adapt renewable energy at all cost for a better living of people.

 

[Electroman]

that President Xi must do what he had said to change the country to adapt renewable energy at all cost for a better living of people.

The 11th President of China is a wise man.

 

[moonfresh]

Neroden. Yes, Tesla can own a wholly-owned electric auto factory in the Free Trade Zone in Shanghai China. Since the air pollution in China is extremely serious especially in Beijing, I utmost believed that President Xi must do what he had said to change the country to adapt renewable energy at all cost for a better living of people.

WOW! This has to be a game changer.
Guess I have to get back into my call options for Tesla again. How come this wasn't widely reported?

 

[bonaire]

Neroden. Yes, Tesla can own a wholly-owned electric auto factory in the Free Trade Zone in Shanghai China. Since the air pollution in China is extremely serious especially in Beijing, I utmost believed that President Xi must do what he had said to change the country to adapt renewable energy at all cost for a better living of people.

China's problem was obvious once they removed the 1-child policy, allowing for two. That was indicative of an economy that "must continue to grow" and needs population growth to spur constant demand on resources and economic terms. That is a leadership not really lined up with the whole idea of sustainability. Leadership interested truly in sustainability would curtail growth and assist in the needed care that sustainability truly entails. Drop of consumption, slowing population growth and easing back on the supply curve.

 

[electracity]

China's population will decrease as a result of past policies. To stop a significant decreasing population they had to change the one child policy.

Most of the world faces declining population trends, except Africa.

 

[neroden]

The one-child policy made no sense because they didn't give anyone sex education and they didn't make birth control available. Come on!

China started providing sex ed in schools and making birth control more readily available around the time they stopped the one-child policy.

 

[bonaire]

India looks pretty perky

 

[S'toon]

Retaliatory measures "took effect immediately," said a Chinese Foreign Ministry spokesperson, Lu Kang. Lu gave no details, but the Communist Party newspaper People's Daily said the customs agency was carrying out a plan announced last month to impose 25 per cent tariffs on a $34-billion list of American goods including soybeans, pork and electric cars.

U.S. tariffs take effect on $34B in Chinese imports as Beijing announces retaliation | CBC News

 

[Ingenieur]

Hey, does anyone know if the new additional China Tariffs of 25% of one week ago apply to Electric cars too?

China slaps 25% tariffs on $16 billion worth of US goods