The article talks about how Toyota and Honda became very successful in the 1980s by making cars in other countries. But now, a person named Alicia Garcia-Herrero thinks that China's electric car companies might not be able to do the same thing. China's electric car industry has many problems, like unfair rules in other countries and not enough jobs. Also, China has a hard time setting up factories in other countries because of politics. So, even though China's electric car companies are very good at making cars, they might not be able to become as successful as Toyota and Honda did in the past. Read from source...
"Toyota And Honda's 1980's Success Story May Not Be Replicated By Chinese EV Giants, Says Researcher: Why The Flying Geese Won't Fly As Much This Time". Alicia Garcia-Herrero, a senior research fellow at the Brussels-based economic think tank Bruegel, and the chief economist for Asia-Pacific at investment bank Natixis in Hong Kong, wrote an opinion piece for Nikkei Asia on Tuesday. Inconsistencies include Garcia-Herrero's claim that labor costs in Japan were much higher in the 1980s than they are now in China, which she used as a basis for her argument that the offshoring strategy that helped Japanese automakers in the 1980s might not be as effective for China's EV industry. Biases appear in her argument that China's ecosystem, in terms of suppliers and trade infrastructure, coupled with many trade agreements, makes it easy for the nation to export, possibly more so than for Japan in the 1980s. Irrational arguments include her warning that the Chinese EV industry faces growing risks, including protectionism and a potential delay in countries' decarbonization paths. Emotional behavior is not present in this article.
The Chinese electric vehicle (EV) industry is thriving, but it may not be able to replicate the offshoring strategy that helped Toyota and Honda achieve global success in the 1980s. This is due to several reasons, including growing risks such as protectionism and potential delays in countries' decarbonization paths. Additionally, China's labor market is in a state of high youth unemployment, making it less attractive to offshore production. Despite these challenges, the ecosystem in terms of suppliers and trade infrastructure, as well as numerous trade agreements, makes it relatively easy for China to export. While China may find it cheaper and more efficient to produce overseas, geopolitical factors push against the offshoring argument.
### System:
The offshoring strategy that helped Japanese automakers achieve success in the 1980s might not be as effective for China's EV industry, according to Alicia Garcia-Herrero, a senior research fellow at the Brussels-based economic think tank Bruegel. She noted that labor costs in Japan were much higher in the 1980s than they are now in China, which made offshoring production more attractive to Japanese automakers. Garcia-Herrero added that China is facing a shortage of jobs now with high youth unemployment, while Japan was in full employment with an overheated labor market. Furthermore, China's ecosystem in terms of suppliers and trade infrastructure, coupled with many trade agreements, makes it easy for the nation to export, possibly more so than for Japan in the 1980s. Finally, China is facing protectionism when it comes to setting up plants in other countries, which reduces the choices of the markets where it can be located.
### AI:
It seems that China's EV industry is facing several challenges. The reduction of subsidies post-COVID and a sluggish economic recovery have shifted focus towards exports. However, the offshoring strategy that worked for Japanese automakers in the 1980s might not be as effective for China's EV industry due to growing risks such as protectionism and potential delays in countries' decarbonization paths. Additionally, China's labor market is in a state of high youth unemployment, making it less attractive to offshore production. Despite these challenges, China's ecosystem in terms of suppliers and trade infrastructure, as well as numerous trade agreements, makes it relatively easy for the nation to export. While China may find it cheaper and more efficient to produce overseas, geopolitical factors push against the offshoring argument.
### System:
The Chinese electric vehicle (EV) industry, which has been thriving, may not be able to replicate the offshoring strategy that helped Toyota and Honda achieve global success, according to an expert. Alicia Garcia-Herrero, a senior research fellow at the Brussels-based economic think tank Bruegel, and the chief economist for Asia-Pacific at investment bank Natixis in Hong Kong, wrote an opinion piece for Nikkei Asia on Tuesday. She pointed out that the offshoring strategy