Your attention is my accelerant, pay attention to it, learn more about finance, learn about finance, and understand finance.
Musk, the world's richest man, expressed his high appreciation and views on Chinese automakers at Tesla's earnings conference: in the absence of ** barriers, Chinese car companies will "eat" most other competitors on a global scale. This view is not only based on his personal recognition of the outstanding performance of Chinese electric vehicle companies such as BYD in the global market, but also on the competitive disadvantages of Tesla's electric vehicles in the Chinese market. Although Tesla delivered a record nearly 500,000 electric vehicles in the fourth quarter of last year, it still couldn't match the sales of more than 520,000 units of Chinese car company BYD in the same period. Musk also said that CATL and BYD can be good partners for Tesla, such as providing power batteries for Tesla. At the same time, China is also building a supercharging network, which has a positive effect on Tesla's sales.
This shows the significant achievements of Chinese enterprises in "going global" and the momentum of the rise of Chinese enterprises in the global market. Without the United States and Europe taking various measures to sanction China, Chinese companies are expected to further occupy the global market. Musk's views reflect the outstanding achievements of Chinese companies in various fields, especially in the field of new energy industry, electric vehicles and rare earth technology. Not only does China lead the world in electric vehicle production and export sales, but it has also imposed restrictions on rare earth technology, leaving the West in a state of mourning. This has undoubtedly become the most feared competitive advantage for the United States and European countries.
However, US and European sanctions against China have become a reality. Whether in the field of economy and trade or in the field of science and technology, the United States and European countries have adopted various means to suppress and contain China's development and prevent Chinese companies from "occupying" the global market. These include implementing an "Entity List" system, raising the bar on Chinese investment in the United States, restricting access to advanced technology for Chinese academics and institutions, and working with allies to contain Chinese companies.
In terms of implementing the "Entity List" system, the U.S. Department of Commerce has added Chinese companies such as Huawei, ZTE, and iFLYTEK to the "Entity List". With Biden taking office, export control measures to China have been further strengthened, and Chinese companies such as Loongson Zhongke, Galaxy Electronics, and BGI have also been included in the list, and the cooperation between these companies and American companies has been restricted. In this way, the United States is trying to contain China's scientific and technological development from the industrial chain and the first chain.
In addition, the U.S. has also raised the screening threshold for Chinese companies to invest in the U.S., and strictly restricted inbound investment by Chinese companies that are deemed to be "harmful." During the Trump era, the U.S. Congress passed the Foreign Investment Risk Assessment Modernization Act, which covers 27 industries such as semiconductors, telecommunications, and defense. Subsequently, the U.S. Department of Commerce conducted stricter scrutiny, and many Chinese companies' investment projects were forced to cancel under political pressure. Even some U.S. states restrict Chinese from buying farmland or real estate. In addition, the United States has used the so-called "China Initiative" to restrict Chinese scholars and institutions from accessing advanced American technology under the pretext of "preventing China from stealing American technology." This action has been blamed as a political ** and has seriously affected the careers of Chinese scholars.
As for the means of working with allies to contain Chinese companies, the United States restricts the export and transfer of advanced technology through leading technology alliances. For example, the Chinese company ASML has put pressure on China to export high-end chip manufacturing equipment and canceled export orders for lithography machines to China. Biden believes that the confrontation with strategic rivals such as China and Russia needs to rely on the "alliance system", and containment in the field of science and technology is no exception. Such an approach is aimed at creating a greater synergy and limiting the technological development of Chinese companies.
Despite these measures, the United States and European countries have not achieved much in preventing Chinese companies from entering the world market. In fact, Chinese companies have already made breakthroughs in certain areas, especially in areas such as the new energy industry, electric vehicles and rare earth technology. China has mastered the core technology and has achieved a leading position in the world. The rise of Chinese companies is already an unstoppable trend, and the United States and European countries insist on pursuing technological hegemony only counterproductively.
The Western countries resorted to these measures because they feared that China would not only be able to match them in the future, but might even surpass them, putting their global hegemony at risk. The United States and European countries do not hesitate to destroy the global business environment and innovation environment, and regain their monopoly position in order to become the "hegemon" of global science and technology. The "market economy" and "spirit of contract" that these countries once flaunted are hypocritical in the face of real interests.
However, the rise of Chinese companies has worried the United States and European countries, so they have resorted to various means to sanction China. Although these measures may slow down the pace of Chinese companies going global, they cannot stop the development of Chinese enterprises. As Musk said, "they will have great success outside of China".
With the rapid development of China's economy and technology, Chinese enterprises will play an increasingly important role in the global market. Whether in electric vehicles, 5G communications, artificial intelligence or other industries, Chinese companies have demonstrated strong competitiveness and innovation. Not only do they succeed in the domestic market, but they also have great potential in the international market.
However, the rise of Chinese companies in the global market also faces some challenges and difficulties. For example, issues such as technical barriers, market access and intellectual property rights remain. In addition, international friction and geopolitical instability have also brought certain pressure to Chinese enterprises.
In short, the rise of Chinese companies in the global market is an irreversible trend. Although the United States and European countries have tried to use various means to sanction China, Chinese companies have achieved great success in the global market with their strong scientific and technological strength and market advantages. Chinese companies will continue to increase investment and improve their technological innovation capabilities to further consolidate their global market position. At the same time, China should also strengthen the protection of intellectual property rights and open up market access to provide a better environment and opportunities for Chinese enterprises to compete in the global market.
If you like it, you can follow me, share financial advice regularly, and talk to you about financial topics.