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Inside China Business
Приєднався 8 жов 2011
Key insights and strategies for global business owners and managers, from inside the world's factory and supply chains.
We live and work in Mainland China, and travel extensively throughout the country to find the highest-quality products at competitive prices, for markets abroad.
During many of our videos, we are saying a quiet prayer for the peace of the world, and that our content is helpful to our listeners.
Several viewers have written, expressing their appreciation and generous offers to send money. It is very satisfying to learn that we are sharing information that is helpful. Please consider, instead, supporting one of the many orphanages or ministries here in South Asia, or elsewhere in the developing world.
Thank you.
Kevin
kdwalmsley@directequipmentcorp.com
For transcripts and direct links, and additional resources, please visit our Substack at kdwalmsley.substack.com/
We live and work in Mainland China, and travel extensively throughout the country to find the highest-quality products at competitive prices, for markets abroad.
During many of our videos, we are saying a quiet prayer for the peace of the world, and that our content is helpful to our listeners.
Several viewers have written, expressing their appreciation and generous offers to send money. It is very satisfying to learn that we are sharing information that is helpful. Please consider, instead, supporting one of the many orphanages or ministries here in South Asia, or elsewhere in the developing world.
Thank you.
Kevin
kdwalmsley@directequipmentcorp.com
For transcripts and direct links, and additional resources, please visit our Substack at kdwalmsley.substack.com/
CATL, BYD, and Tesla expose Europe's EV battery 'reshoring': only China and Korea can build them
European governments are hoping to "reshore" the EV and battery industries, to reduce dependency on Asian factories and bring back manufacturing jobs.
But the EV industry was never in Europe, nor in North America, at either the scale or the levels of efficiency and engineering expertise that we observe in Chinese or South Korean plants.
CATL is the world's biggest battery maker, and employs over 21,000 engineers and scientists across its R&D departments alone. Industry experts admit that to compete with Chinese or Korean battery makers, over a thousand key engineering processes must be replicated.
Resources and links:
Bloomberg, Europe’s Big Battery Ambitions Are Failing, and China Is Benefiting
www.bnnbloomberg.ca/investing/commodities/2024/12/10/europes-big-battery-ambitions-are-failing-and-china-is-benefiting
Reuters, Sweden's Northvolt files for bankruptcy, in blow to Europe's EV ambitions
www.reuters.com/technology/northvolt-files-chapter-11-bankruptcy-us-2024-11-21/
New York Times, British Battery Start-Up Files for Bankruptcy
www.nytimes.com/2023/01/17/business/uk-britishvolt-battery-maker-bankruptcy.html
Wired, The Collapse of the UK’s Electric Vehicle Champion
www.wired.com/story/the-collapse-of-britishvolt/
Inside EVs, ‘He Doesn’t Know How To Make A Battery’: China’s CATL Chief Blasts Elon Musk
insideevs.com/news/740941/he-doesnt-know-how-to-make-battery-musk-blasted-catl-chief/
Reuters Exclusive: China battery giant CATL would build US plant if Trump allows it
www.reuters.com/business/autos-transportation/china-battery-giant-catl-would-build-us-plant-if-trump-allows-it-2024-11-13/
Reshoring, Nearshoring, and Friendshoring
www.aatcc.org/aatccnews_2024_01a/
Visual Capitalist, Visualizing China’s Dominance in Battery Manufacturing (2022-2027P)
www.visualcapitalist.com/chinas-dominance-in-battery-manufacturing/
The Top 10 EV battery companies
www.greencarcongress.com/2022/10/20221009-evbatteryshare.html
Closing scene, Li River, Guangxi province
But the EV industry was never in Europe, nor in North America, at either the scale or the levels of efficiency and engineering expertise that we observe in Chinese or South Korean plants.
CATL is the world's biggest battery maker, and employs over 21,000 engineers and scientists across its R&D departments alone. Industry experts admit that to compete with Chinese or Korean battery makers, over a thousand key engineering processes must be replicated.
Resources and links:
Bloomberg, Europe’s Big Battery Ambitions Are Failing, and China Is Benefiting
www.bnnbloomberg.ca/investing/commodities/2024/12/10/europes-big-battery-ambitions-are-failing-and-china-is-benefiting
Reuters, Sweden's Northvolt files for bankruptcy, in blow to Europe's EV ambitions
www.reuters.com/technology/northvolt-files-chapter-11-bankruptcy-us-2024-11-21/
New York Times, British Battery Start-Up Files for Bankruptcy
www.nytimes.com/2023/01/17/business/uk-britishvolt-battery-maker-bankruptcy.html
Wired, The Collapse of the UK’s Electric Vehicle Champion
www.wired.com/story/the-collapse-of-britishvolt/
Inside EVs, ‘He Doesn’t Know How To Make A Battery’: China’s CATL Chief Blasts Elon Musk
insideevs.com/news/740941/he-doesnt-know-how-to-make-battery-musk-blasted-catl-chief/
Reuters Exclusive: China battery giant CATL would build US plant if Trump allows it
www.reuters.com/business/autos-transportation/china-battery-giant-catl-would-build-us-plant-if-trump-allows-it-2024-11-13/
Reshoring, Nearshoring, and Friendshoring
www.aatcc.org/aatccnews_2024_01a/
Visual Capitalist, Visualizing China’s Dominance in Battery Manufacturing (2022-2027P)
www.visualcapitalist.com/chinas-dominance-in-battery-manufacturing/
The Top 10 EV battery companies
www.greencarcongress.com/2022/10/20221009-evbatteryshare.html
Closing scene, Li River, Guangxi province
Переглядів: 34 008
Відео
Investor alert: China is drinking a lot more coffee, and taking the supply chains off our exchanges
Переглядів 55 тис.2 години тому
China is the fastest-growing coffee market in the world. There are now more coffee shops in China than in any other country, by far, up from virtually zero just twenty years ago. It is instructive to observe how China is meeting this new, booming demand, because it is so similar to China's supply chain strategies across entire industrial and consumer sectors. For this presentation, we will foll...
US price tag for China's gallium export ban: $602 billion and new monopolies for Huawei
Переглядів 83 тис.4 години тому
In retaliation over semiconductor export bans, China banned exports of gallium. A mere 30% reduction in gallium supplies to global markets would result in a $602 billion hit to the US economy alone, according to experts. What's more, gallium is a critical component in 5G telecom gear, a market where Huawei already has large advantages and is believed to be at least a generation ahead of competi...
Why South America now does all its business with China: US companies, investors are dumb and lazy
Переглядів 55 тис.9 годин тому
In the past twenty years, China has become the leading trade partner for most of the countries in South America. This is despite strong overtures by Latin America for increased trade and stronger ties with North America and Western Europe. China has poured hundreds of billions of dollars of Foreign Direct Investment into South America. China's Belt and Road Initiative involved large upgrades to...
New trade routes from Brazil and Russia are putting US farmers, ranchers out of business
Переглядів 49 тис.12 годин тому
Record grain harvests in China and India are reducing Asia's dependency on imports, to levels far below those forecasted in prior years. But more of the BRICS nation supply chains for grains are shifting away from North America and Europe, and to Russia and Kazakhstan. South America's ag sector is also booming, also in grains and soybeans. But Brazil is exporting record volumes of beef to China...
China's BYD and Great Wall pour billions into Brazil after Ford, Mercedes abandon the market
Переглядів 52 тис.14 годин тому
BYD and Great Wall are Chinese carmakers, who enjoy surprising success in Brazil. This after Ford and Mercedes shuttered plants there, and industry experts widely predicted that Brazilian consumers would not accept Chinese brands, nor electric vehicles. But the economics of EV's, particularly in Brazil, are obvious in retrospect. What's more, the economics of manufacturing EV's in Brazil are si...
China's overcapacity and shipbuilding
Переглядів 50 тис.19 годин тому
Over half of the world's ships are now built in Chinese shipyards, which have grown by nearly 3 times in just ten years. At no time in recent history, and perhaps ever, has the world's shipbuilding industry been so dominated by a single country. In order to meet the skyrocketing demand for new ships, which has more than doubled in just the past four years, China first had to invest heavily in s...
Global Majority nations are de-dollarizing trade with Panda Bonds and African banks
Переглядів 52 тис.21 годину тому
Top African banks are key in the BRICS push to do more trade outside the US Dollar, and especially outside Western systems. By setting up branches inside China, African banks are able to borrow and lend in renminbi, the Chinese currency. This allows for cross-border trades to be settled in local currencies and RMB, instead of through USD-denominated letters of credit or debt markets. Panda Bond...
Flying cars and heavy drones fueling China's new low-altitude economy
Переглядів 48 тис.День тому
China is racing to build a zero-to-one economy in 3-D low-altitude space. They already enjoy near-monopolies on advanced drone technologies and manufacturing, along with electric batteries. Now China's central government and each of its provinces are pushing ambitious plans to incorporate heavy electric drones into key areas of the Chinese economy, then roll out those technologies across the wo...
China's AI hospitals will transform medicine across the world. But not in the United States.
Переглядів 54 тис.14 днів тому
China has invested heavily in AI across medical applications. Population-scale testing is now underway at Beijing's Tsinghua University, and in Shanghai at Tongji University. Dramatic improvements are already evident in the observed error rates in diagnosis and treatment recommendations. In the US, diagnostic errors across all disease is over 11%, with high percentages of Americans reporting si...
China blows up diamond market and DeBeers with near-monopoly on manmade superhard materials
Переглядів 109 тис.14 днів тому
China produces 95% of the world's manmade diamonds. Lab-grown diamonds are now vital components in industrial machinery, cutting tools, and even in semiconductors and electronics. For decades, DeBeers has deftly manipulated the supply and pricing in the global diamond markets. But China's booming production of manmade stones, including for jewelry, now has DeBeers struggling to maintain market ...
The Pentagon's new plan to protect Pacific air assets from Chinese missiles may be the dumbest ever
Переглядів 54 тис.14 днів тому
Most of the Western Pacific is easily within range of China's missile brigades, and Pentagon war planners are gravely concerned that Chinese hypersonic missiles would destroy allied naval and air units, within moments of a breakout in hostilities. The Pentagon has embraced a new strategy, called Agile Combat Employment. It involves new construction and additions to over a dozen new airfields ac...
New US sanctions on Russian LNG creating panic in Asian markets; Japan and Korea most affected
Переглядів 49 тис.14 днів тому
In December, China completed a 5,000-km natural gas pipeline from Russia, which powers 130 million homes, and strengthens China's energy posture. China's energy costs are already among the lowest in the world, and provides its factory sector large competitive advantages. Also in December, the United States announced new sanctions on Russian Liquefied Natural Gas (LNG). Japan is heavily dependen...
China's economic model has a weak spot. Here's their plan to fix it.
Переглядів 53 тис.14 днів тому
China's the world's most dominant productive economy, but lags global peers in value chains. The giant trade surpluses accumulated by the Chinese factory and logistics sectors are largely negated by their deficits in business services. Apple Corporation serves as a case example. Apple has outsourced almost all its production to China, while retaining product design and branding. But it's in tho...
No antimony from China means no artillery shells for NATO, Ukraine
Переглядів 62 тис.21 день тому
NATO arsenals are rapidly depleting, due to massive draws for wars in Ukraine and the Middle East. The German army now only has enough munitions on hand to sustain combat operations for two days. Especially critical is the shortage of artillery shells. The United States and the EU have production orders for over 3 million shells. However, munitions factories are already far behind, and China's ...
Trump tariffs, Wegovy, and why one fat American is worth more than 7 fat Chinese
Переглядів 62 тис.21 день тому
Trump tariffs, Wegovy, and why one fat American is worth more than 7 fat Chinese
Canada's premiers threaten Mexico, demand Mexican trade war with China. Will Mexico care?
Переглядів 95 тис.21 день тому
Canada's premiers threaten Mexico, demand Mexican trade war with China. Will Mexico care?
Why is China's electricity so cheap?
Переглядів 89 тис.Місяць тому
Why is China's electricity so cheap?
The Pentagon is running out of missiles. After December 1, that will be a big problem.
Переглядів 57 тис.Місяць тому
The Pentagon is running out of missiles. After December 1, that will be a big problem.
As Boeing and Airbus struggle with fake parts and order backlogs, China's COMAC scoops up new orders
Переглядів 62 тис.Місяць тому
As Boeing and Airbus struggle with fake parts and order backlogs, China's COMAC scoops up new orders
China's companies dominate in fast-growth economies across Global South and BRICS; US firms absent
Переглядів 58 тис.Місяць тому
China's companies dominate in fast-growth economies across Global South and BRICS; US firms absent
Huawei tightens its grip on global telecom markets in another failure of Western sanctions
Переглядів 76 тис.Місяць тому
Huawei tightens its grip on global telecom markets in another failure of Western sanctions
Why is China hiding 700 billion dollars?
Переглядів 89 тис.Місяць тому
Why is China hiding 700 billion dollars?
India and China push gold to record highs, then pull from Western vaults after Russia sanctions
Переглядів 63 тис.Місяць тому
India and China push gold to record highs, then pull from Western vaults after Russia sanctions
Investor Alert: Caterpillar, Volvo sales under pressure by China's push for self-sufficiency
Переглядів 52 тис.Місяць тому
Investor Alert: Caterpillar, Volvo sales under pressure by China's push for self-sufficiency
Can China catch Elon Musk and SpaceX?
Переглядів 54 тис.Місяць тому
Can China catch Elon Musk and SpaceX?
Layoffs at John Deere blow up investment thesis on food shortages; US farmland to see liquidation
Переглядів 63 тис.Місяць тому
Layoffs at John Deere blow up investment thesis on food shortages; US farmland to see liquidation
Japanese teardowns of Chinese electric vehicles by BYD and Nio stun car parts executives in Nagoya
Переглядів 365 тис.2 місяці тому
Japanese teardowns of Chinese electric vehicles by BYD and Nio stun car parts executives in Nagoya
Chinese companies are going around US semiconductor export bans. So are American companies.
Переглядів 60 тис.2 місяці тому
Chinese companies are going around US semiconductor export bans. So are American companies.
Urbanization and industrial clustering power China's rise in innovation
Переглядів 45 тис.2 місяці тому
Urbanization and industrial clustering power China's rise in innovation
Alot what you observed is common sense. It is the same as 10y ago, someone/Chinese starts Windows replacement from scratch, someone/Chinese starts networking gears replacement from scratch. They all know that's the hardest way and poised to fail, a clever strategy is definitely needed. Can see the West is desperate now, throwing every Euro or Pound into anything that stands a chance. BTW, if the Chief of a tech company can speak like Zeng, it is very hard to win them, that's the difference between succession in the East and West. We have even seen some new CEOs were lawyers, accountants, etc.
UK has no more car industry. Why are they making EV batteries? Are they going to sell them to Tesla or BYD?
China is now in the same position as the 1800's in which the western countries owe China a huge debt and have difficulties in paying. The US gun boats will not cut it this time around. The western countries must pay the piper, lol, good luck jack.
Best for 2025.
Excellent program. A pearl among swine. Well done!
Great reporting that you don’t see in the mainstream news!
proof some politicians just talk shit about Green(and many other topics). They set target without having a plane.
People think of drones in terms of transportation or deliveries but there is a growing need for drones to do cleaning and inspection for high rise buildings. Instead of humans in highly dangerous jobs using rope access or gondolas to go up and down a high rise building, drones can do this with high resolution cameras for inspection or even do spray cleaning of the windows.
After everything has been said and done, I think USA would be sending its troops down there and steal everything. If they could and it remains to be seen and done. 😢
A great year of reports thanks. Looking forward to spending time with you in 2025. Happy holidays.
"Globalization" was the west things initially. When it's not good for US, when China outplayed the game, US now talked "de-risk" and dragged the Europe into it. For years the Europe economy is falling as a result. But it didn't affect US, US didn't try to rebuild supply chain at all. It just "allies-shoring", bought the products into US made/assemble in other countries but main components made by China, and in most case those were the China companies too.
Elon would be smart to start selling his better packs to other automakers all he has to do is start another company call it tesla packs
US gov forced China into a corner. Now China is 110% developing their own semiconductors building facilities. In a couple of years China will rule the semiconductor market.
they have far more engineers compare to the west, expect they will take lead in every industry.
That's all true, but it shouldn't stop you trying. Barriers to entry are always touted by the incumbent. Costs and complicated tasks are standard fayre that they spout to try and scare people off. They also try to get regulatory body rules and government laws created to block you. Meanwhile, the incumbents get set in their ways, fat and old (often, so do their management). IBM was king of the hill, then Microsoft were the new kids who knocked them off their perch. Then MS got fat and old and Google knocked them off. Now Google and Facebook are getting lax and slow to react. (it shows in their inability to deal with the IT industry's 20 year failing; The inability to fix caching issues dynamically. It shows in their programming. Now the new ev, battery incumbents are running from the same playbook as all those that went before. So keep at it. Your ideas are young, dynamic and fluid. When you enter the market, they are so big, they will be unable to react quickly enough. You will become the new leader....their only choice to stop you will be to try to crush you or buy your company. At that stage, you know they are scared, you have won. Then it's up to you which path you take.
Most of the factory workers in China get paid about as well as US factory workers. Factories aren’t in China for cheap labor, they are there because of supply chains China dominates and that’s where the skilled labor is.
Take it from a Long Shore Man !
Europe was late to the social media race and were following sheeps to Google, Faceook, Amazon, ebay, etc They were more interested in restoring the Notre Dame Cathedral and demanding early retirement. Don't expect much competition from the EU in electronics. Their erstwhile mammoth Phillips Electronics went bust.
4:40 The rest of the world calls this CORRUPTION. In the West, it is "all about image form over function", to save face that is.
Enemies within the gates.
You also have a good sense of humor 😂.
NMC batteries are outdated and already being replaced by LFP batteries, and SS batteries aren't far from being mass produced. Looks like the toddler genius space Karen doesn't know shit about batteries 😁
*🤭 If you work at battery industry or have high school chemistry you know that Tesla's battery 4680 is just a repackaged name for Panasonic batteries, 46 and 80 is actually the number of Panasonic cells and dimension of overall size of the cell* *As a start up Tesla have ZERO battery Patents, Panasonic have over 20,000 from 30 years of R&D.* *Tesla also used Toyota's manufacturing process yet quality and finishings still xxxx*
Thank you for your work! I wish your videos can reach to more people around the world. Have you thought about posting your work on X?
Western MSM, I mean propaganda machine, have done a great job in conning the masses and giving them false hope! They are also brainwashing the masses, giving them a false sense of security and safety, regarding the evil agenda of the Senile Joe regime for WWIII, using Ukraine!
Helping the world of 7 billion with lesser pollutions and emissions created by the west, 21,000 engineers isn’t too much at all.
china is in decline 😢 Sad
When China finds that it lacks or is behind any technology, equipment, fields,etc , the government and private sector will pour billions dollars and hundred thousands of engineers into it to solve problem. Western countries just dont have that many of engineers just to solve a problem.
Business Tech news on the next level, 5 stars.
在40年前,中国大量引入外资在中国生产几乎一切东西,我们学习了欧美日如何生产、如何管理工厂、如何管理供应链。现在一些行业我们领先了,欧美完全可以引入中国企业到本地设厂生产。然而一切在国家安全、去风险化的名义下,他们禁止引入更先进的中国企业。
Europe and America building batteries to compete against China would be like China building non-EV cars and compete against Europe.America,Japanese and Korean non-EV cars. The result is obvious. Thats the reason why the smart Chinese started the batteries and EV cars years ago. I don't say others can't build EV car,etc , but one thing is for sure.They can never fight the Chinese on the price.
...or quality❤😂
There is this journalist writing stories about ”green bubbles”, politically supported projects with tax money, that end in nothing. As can be expected, he is pronounced pariah by mainstream media. The latest of these projects in Sweden is a company that should make steel with hydrogen, it would use half of available electricity in Sweden.
Wakanda Forever!
so what if the west managed to build a competiting EV battery factory? Who are they going to sell to? they can't compete in prices
That's what tariffs is for. But they are useless if you don't have any viable manufacturing to protect. But the US and EU currently isn't utilizing tariffs for protection of their industries, as they should. They are using them for a trade war.
The UK approved £100 million in financial support at the start of the invasion of Ukraine, to help manage the disruption. It has since provided $2 billion (£1.6 billion) in guarantees for World Bank lending to Ukraine, with another $3 billion pledged over the next three years. However they cannot find any money to invest in their own country. ROFLMAO
It's an ancient wisdom, don't start the war you don't know how to end, especially with a country that has 5000 year history, vs our 200.
Be good ❤
Nice video and presentation. I agree Panasonic and CATL are on battery and Tesla is not, may be never Tesla. In 2020 I commented about new technical problem in changing form factor from 18650 to 45800 on respective YT discussion. Long story short, 18640 is a better choice on heat dissipation benefit fast charge and acceleration, hence longevity and fire hazard. Blade cell on the other hand don’t have the so call bottle neck, single tab, issue. Tabs width are as tall as cell height eliminated bottle necking. Cell thickness are thinner runs cooler in charges/discharge cycles. Each cell heat sink laterally to each aluminum divider hence short cutting heat vertically to the pack’s aluminum outer casing, effectively and efficiently. Also eliminated a need for bulky heat piping.
Thanks for your great work and merry Christmas. 🇦🇺
Appreciate you 😊👍❤
The future is bleak for us companies
This is probably the best channel for info about what Chinese industry does well. But there must be something China struggle with too. I would like to get a sprinkle of that from someone who isn't a China-hater. (There are so many of those on UA-cam, and they are all worthless!)
Struggle? There are many of course. Based on my experience as owner of pruduct brand manufacturing in China: 1) Price war. This is the main problem most manufacturers are facing in China now. With external and internal slowdown in demand, the price war is becoming unreal. 2) Technology. Despite advancement in many areas, many industry is still in need of imported items that could be sensitive in the near future as trade and tech wars between the west and China intensifies. Many companies are actively seeking domestic alternatives, but China cannot be good in everything all at once. There are still parts and crucial raw materials needing to be imported from other countries. 3) Workers. Believe it or not, we still lack workers. More specifically, we lack qualified workers. Workers are expensive, but money is not the biggest problem. There is a supply and demand mismatch in the job market. Most young graduates want nice comfy white collar office jobs while what the manufacturing sector need most is highly skilled blue collar worker at the right price. Worker's attitude is also changing. They use to come from poor families, but the younger workers nowadays aren't so poor and they are less willing to work hard without huge overtime payments. There are many other problems, but the one i listed above are what most manufacturing companies are facing today in China.
South Korea’s EV battery champions are led by SK and LG to be exact.
The value chain was always in the west Can just open a new shop in another shore something you can't do if you control only the supply chain... can't they build the battery factory in Mexico? something we can benefit from... should have the private sector fund these guys investment banks are no fools.. my take is that the state-sponsored battery manufacturing to flood and have a pricing edge...
Value chain always in the West. You talking about past history. No wonder Western products were too expensive then. Now the West hardly can compete and they blame it on unfair practices, haha. You can compete, it’s free trade globalisation but if not then it’s over capacity, unfair trade practices, human rights violations, etc.
Everything in Britain is a scam now anyway. We used to be "Cool Britannia" in the 90s. Nowadays we are just an airforce base for the USA.
"Manufacturing is hard"; especially of batteries! But somehow I doubt that CATL's 21'000 engineers in R&D is necessary. Maybe they should do "a Musk" now and then, reducing the number by 10%, just to keep the bloating away.
Another brilliant report. Dr Zang is a true leader and a gentleman. It’s wonderful that these two intellectual giants, Zheng and Musk can educate each other. We are in good hands.
American businesses only want money. They’ve all swallowed private equity BS.
Thank you for your very informative logical content. Merry Christmas and a Happy New Year !. Be Good 👍
Tesla is the biggest scam perpetrated on the world. Musk wants to be President as its the only way hell stay out of mail.