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China will not allow any competition at all. As soon as competition starts to emerge, China will push prices down until they become unprofitable. Trump is exerting pressure, but none that can be taken seriously in the long term. I don't see a real case for all the commodity companies. China will always remain No.1 and a complete isolation from the Chinese market would be absolute chaos
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@nassimcanim We'll see. So far, things are going more in my direction. Both politically and in terms of prices. There won't be complete isolation. But the rare earths in particular, which are needed for armaments, will not be left dependent on China or Russia.
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@nassimcanim
China has done this in the solar industry. And they are on their way in the automotive industry. At least they have almost pushed German companies out of their own market.
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@Tenbagger2024 I didn't even think about it, but it's really true when you look at the automotive industry. Frightening
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@Tenbagger2024 Well, at least in the automotive industry, it is 90% management decisions that have led to the decline. They just thought they could always push through prices for Made in Germany and failed to build affordable electric cars. At the moment, this is still kindergarten and is only reflected in China. But once BYD, Xiaomi and Xpeng are here, the battle will really begin. And there will certainly be dealer networks looking for new manufacturers in the near future.
The first one that comes to mind is Nissan.
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@Multibagger
This is a David versus Goliath battle with unequal weapons. In China, such a growth sector is highly subsidized, unfair working conditions, no trade unions and even forced labour.
You can only rely on Made in Germany or premium. But no one in China is interested in that anymore (see Porsche).
The only concept that still works is Ferrari, always keep the supply low.
When I see how many BYDs are unsold in China. We can only hope that the European market is not flooded with dumping prices.
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@Tenbagger2024 I see it a little differently. Before e-mobility, Chinese cars were already subsidized, but everyone bought the German brands because they were technically superior. They rested on their laurels and thought they could sell a Golf for 50,000 as an electric model, which is hopelessly inferior in terms of range, infotainment and connectivity. That doesn't work. If you can't do it yourself, you have to look for partners and give them a piece of the pie. Now it will take at least 10 years to catch up, if that works at all.
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@Multibagger
You're right, of course, that adds to the disaster.
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@nassimcanim To be honest, until China floods the market again, I think I've made a good profit.
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@Multibagger you're right, it could definitely rise a bit due to euphoria because I think many people have the same approach as you, which is not bad, but it only decays on a 2-3 year horizon
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@nassimcanim A little is good. I'm up a good 140% with $MP and 120% with $UUUU. And I assume that both will double again.