colleague Joseph Sternberg identifies the EV market from China. The way out China believes to export

EVs well-built, cheaper, and extremely attractive to European buyers. However, too much of a good

thing. Joe gives a lesson here.

So what is his success?

Success is a failure in China.

Too much of a good thing.

More later.

Yes, and the EV thing, the electric vehicle market, is a fascinating case study of what's going wrong there because on the one hand, the Chinese manufacturers have really

upped their game. There was a big focus from Beijing on encouraging electric vehicle manufacturing

as the technology of the future, but because of that policy focus and the single-mindedness

with Beijing pursued it, they are now doing too much of it.

So China is littered with more than 100, I think, manufacturers of electric vehicles.

They're really struggling to sell them domestically. There's huge price deflation and

competition that the party is very uneasy about. And that is creating this enormous pressure to

export all of this. And yet the rest of the world is now in a situation where they don't want

to accept those Chinese exports. And so it just becomes this cascading series of policy failures

that Beijing has to deal with.