Sales of EVs remained weak until 2019, when China let Tesla open a wholly-owned factory in Shanghai. “It took this catalyst…to boost interest and increase the level of competitiveness of the local Chinese makers,” said Tu Le, managing director of Sino Auto Insights, a research service specializing in the Chinese auto industry. Back in 2011 Pony Ma, the founder of Tencent, explained what set Chinese capitalism apart from its American counterpart. “In America, when you bring an idea to market you usually have several months before competition pops up, allowing you to capture significant market share,” he said, according to Fast Company, a technology magazine. “In China, you can have hundreds of competitors within the first hours of going live. Ideas are not important in China—execution is.” Thanks to that competition and focus on execution, the EV industry went from a niche industrial policy project to a sprawling ecosystem of predominantly private companies. When Western auto executives flew in for April’s Shanghai auto show, “they saw a sea of Chinese brands,” said Le. “They hear the sounds of the door closing, sit inside and look at the quality of the materials, the fabric or the plastic on the console, that’s the other holy s— moment—they’ve caught up to us.” Related: China’s Auto Export Wave Echoes Japan’s in the ’70s
- Date Posted:
- June 7, 2023
Goldman Sachs economists argued the neutral rate will likely be higher than the Fed currently expects. "Our best guess is that if the Fed solves the inflation problem without a recession, the funds rate will eventually stabilize closer to 3-3.25% than to the FOMC’s 2.5% median longer run dot." If the neutral rate is in the range Goldman economists expect, then the 30-year fixed mortgage rate will be in the low to mid 6% range. With a 3.25% Fed Funds rate, a 4.45% 10-year yield, we’d expect 30-year mortgage rates around 6.45%. This is close to the recent range! Note that with this neutral rate, the 10-year yield would likely increase even as the Fed lowers the Fed Funds rate.