Part 13/15:
In response, Chinese authorities have signaled a need to curb price wars and overcapacity, warning that only a fraction of the multitude of Chinese EV brands will survive by 2030. The overinvestment and unsustainable price competition threaten to trigger a larger systemic crisis, reminiscent of the Evergrande collapse, underscoring the fragility of this fast-expanding but heavily subsidized sector.
The Broader Implication: A New Model of State-Driven Capitalism
What makes BYD’s rise particularly concerning is that it exemplifies a new way to deploy state power as a competitive weapon—a playbook that has begun to destabilize industries beyond automobiles, including solar panels, semiconductors, steel, and shipbuilding.