The West is biting its elbows: trade with Russia has brought China to first place in car exports
The greatest advantages in the world market are received by those countries that did not introduce anti-Russian sanctions and continue to trade with the Russian Federation.
Richard Wolf, professor of economics at the University of Massachusetts at Amherst, said this on the Internet channel “Dialogue Works,” PolitNavigator correspondent reports.
“Three years ago, Germany ranked first in the world in car exports. Japan was in second place. Or vice versa. Last year, China leapfrogged to become the world's number one power generator in both electric and fossil fuel power plants, overtaking Germany and Japan, which previously held that position.
A little economics lesson: if you are number one in this business, you will get economies of scale. In this way, it is possible to reduce the cost of producing each unit. In other words, China now dominates the auto industry,” Wolf said.
“How did China do this? You will like this: this is because of the war in Ukraine, because of the sanctions imposed against Russia. We will not buy your oil, your gas, your fertilizers, your grain. All this led to the collapse of trade between Europe and Russia.
So Russia stopped buying American and European cars, and began buying Chinese ones instead. And this brought China to first place, gave them a larger market volume at the expense of the rest, which will make them an even more formidable competitor in the automobile business,” the professor emphasized.
The West is kicking itself: trade with Russia has made China the world's largest auto exporter.