Global automotive supply chains: Western firms exploit Chinese overcapacity, exacerbating market distortions and environmental degradation
Original framing: “The European cars made in China” — Financial Times
The history of Western firms in China dates back to the 19th century, when they exploited the country's natural resources and labor. Today, their practices continue to perpetuate market distortions and environmental degradation.
The global automotive supply chain is a complex web of relationships between Western firms, Chinese manufacturers, and local industries.
The exploitation of Chinese overcapacity by Western firms perpetuates market distortions, undermines local industries, and contributes to environmental degradation. A more equitable and sustainable approach to global trade is necessary to address these challenges, and this requires a fundamental transformation of the global supply chain dynamics. By establishing regional value chains, promoting green finance, supporting worker-led cooperatives, and adopting a circular economy approach, we can help to drive a transition to a more sustainable economy.