China Economy: News & Discussion

MiG-29SMT

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BERLIN (Reuters) — The United States overtook China as Germany's most important trading partner in the first quarter of this year, according to Reuters' calculations based on official data from the German statistics office.


Germany's trade with the United States - exports and imports combined - totalled 63 billion euros ($68 billion) from January to March, while the figure for China was just under 60 billion euros, the data showed.

In 2023, China was Germany's top trading partner for the eighth year in a row, with volumes reaching 253 billion euros, although that was only a few hundred million ahead of the U.S.

"German exports to the U.S. have now risen further due to the robust economy there, while both exports to and imports from China have fallen," said Commerzbank economist Vincent Stamer, explaining the first quarter shift.

Structural reasons are also a factor, he said.

"China has moved up the value chain ladder and is increasingly producing more complex goods itself, which it used to import from Germany," said Stamer. "In addition, German companies are increasingly producing locally instead of exporting goods from Germany to China."

Container gantry cranes at the Burchardkai terminal above the "Berlin Express" berthed in the port of Hamburg. (Jonas Walzberg/picture alliance via Getty Images) (picture alliance via Getty Images)
Germany has said it wants to reduce its exposure to China, citing political differences and accusing Beijing in its first China strategy announcement last year of "unfair practcses". But Berlin has been vague on policy steps to reduce dependencies.

German imports of goods from China fell almost 12% year-on-year in the first quarter, while exports of goods to China fell just over 1%, said Juergen Matthes, from German economic institute IW.

"The fact that the Chinese economy is performing worse than many had hoped, while the U.S. economy is exceeding expectations, is presumably contributing to this," said Matthes.


The U.S. now accounts for around 10% of German goods exports. China's share has fallen to less than 6%, Matthes said.

"With a clear global economic headwind for the German economic model, a reorientation - also geopolitically motivated - seems to be taking place: away from system rival China and towards transatlantic partner U.S.," he added.

It is unclear, however, whether this will continue.

"If the White House administration changes after the U.S. elections in November and moves more in the direction of closing off markets, this process could come to a standstill," said Dirk Jandura, president of the BGA trade association.

(Reporting by Maria Martinez and Rene Wagner; Editing by Miranda Murray and Mark Potter)

 

MiG-29SMT

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US-imposed curbs on advanced technology exports to China have held back its domestic artificial intelligence industry, experts said.


High-end chips like US chipmaker Nvidia’s new Blackwell models are crucial to advancing AI — but without ready access to them, Chinese firms are struggling to keep up with their western competitors.


China’s telecom giant Huawei has caught up with some developments despite US controls, and has developed high-powered chips of its own. But the race could get harder to run: On Tuesday, Saudi Arabia’s investment fund for AI and semiconductor technology said it would pull out of China if the US asked, while Washington announced it would revoke certain licenses to export tech to Huawei.

The US is also debating curbs on the software that powers AI, alongside hardware export controls, Reuters reported.

 

SexyChineseLady

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These Hungarian posters are like from 1970s Commie Solidarity times!!!
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Though both countries are very capitalistic today! Chinese companies are investing heavily in Hungary as a manufacturing and logistics base in the EU :)
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SexyChineseLady

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If the U.S. and Europe get what they want—a crackdown on Chinese imports—it doesn’t feel like it would result in better cars. It feels like it would keep buyers of those markets locked to cars that aren’t executed as well. It’s nakedly protectionist because deep down, all of the Western auto executives and some hawkish China pundits understand that Chinese EV and PHEV models are more compelling than what European, other Asian, and American brands have come up with.

I’ve seen it with my own two eyes. We’re cooked.
 

MiG-29SMT

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View attachment 252179



If the U.S. and Europe get what they want—a crackdown on Chinese imports—it doesn’t feel like it would result in better cars. It feels like it would keep buyers of those markets locked to cars that aren’t executed as well. It’s nakedly protectionist because deep down, all of the Western auto executives and some hawkish China pundits understand that Chinese EV and PHEV models are more compelling than what European, other Asian, and American brands have come up with.

I’ve seen it with my own two eyes. We’re cooked.
China’s automotive industry has revolutionised over the past decade, from producing basic western clones to making cars that equal the world’s best. As the manufacturing powerhouse of the world, China is also producing them in huge volumes.

However, Chinese cars are facing difficulties in finding buyers in Europe. Imported cars, many of which are Chinese electric vehicles, are piling up at European ports, with some spending up to 18 months in port car parks as manufacturers struggle to get them onto people’s driveways.

Why is this, though? Chinese electric vehicles in particular are getting positive reviews. Having driven them myself, I can attest to them matching, or even exceeding, the well-known European brands in range, quality and technology.

But entering an established market as a challenger is a complex operation. Chinese makers will have to contend with buyer wariness, a lack of brand image, trade protectionism and rapid outdatedness.


Lack of buyer faith
China’s automotive expansion programme draws parallels with the moves made by Japan in the 1960s and 70s. At that time, the product coming from Japan was commendable but lacked the finesse, design and longevity of their western counterparts. Japanese cars were thought of as tinny, underpowered and susceptible to rusting, as well as looking very generic compared to stylish European designs.

Memories of Japan’s involvement in the second world war were also fresh in (particularly American) buyer’s minds, who were slow to forgive a nation that launched the Pearl Harbour attacks. However, by constantly focusing on a reliable, relatively cheap and increasingly stylish product, Japan slowly turned this around to become the automotive powerhouse of the 1990s and 2000s.

China is viewed with suspicion by many westerners, and its carmakers are similarly hampered by their recent legacy of producing both endorsed and illegal clones of European cars. But with the lessons of the Japanese to learn from, Chinese cars are rapidly advancing to match and exceed existing alternatives.

Strategic purchases of brands like Volvo, Lotus and MG have also given China existing brands that are respected and, more importantly, have some of the best engineering knowledge in the world.

Yet, even after buying up western brands, Chinese automakers have proven unable to buy loyalty from existing customers of brands like BMW, Porsche, Ferrari and Ford. For these buyers, the history of the brand in terms of known reliability and even things like motor sport success is something that Chinese makers, like the Japanese, will have to build up over time.

Ford has a rich racing history. Grindstone Media Group/Shutterstock
It was Ford dealers who, in the 1960s, coined the phrase: “Win on Sunday, Sell on Monday”. The phrase is as an adage to attest the fact that if buyers see a car winning a race, they’ll be motivated to go out and buy one.

Existing manufacturers also have a legacy of reliability that buyers have experienced for themselves, giving a huge brand loyalty benefit. Add to this a lack of an established dealer network outside of China and you see how Chinese makers struggle against the established competition.

A challenging trade environment
China has a price advantage compared to Europe or the US. Economies of scale, excellent shipping links and cheap labour mean that Chinese cars are cheaper both to make and buy.

However, in many countries they are subject to high import tariffs. The EU currently imposes a 10% import tariff on each car brought in. And in the US, car imports from China are subject to a 27.5% tariff.

These tariffs may well rise further. The EU is conducting an investigation into whether its tariff is too low. If it concludes this later this year, higher duties will be applied retrospectively to imported cars.

Cars, and specifically electric vehicles, are also in a phase of their development where they see rapid changes and updates. Traditionally, vehicle models would see a market life of between four and seven years, perhaps with small updates in trim, colour palette or feature availability.

But Tesla has turned this on its head. The Tesla Model S, for example, has seen almost continuous product updates that make it barely recognisable in terms of hardware from a car released in 2012. Chinese automakers have taken note. They are bringing out new models around 30% faster than in most other nations.

Tesla is supporting owners of older cars with upgrades, at extra expense, to bring them in line with the latest hardware. Without guaranteed software support like this, the rate at which Chinese automakers are bringing out new models could make buyers wary that the product they have bought will soon become outdated compared to buying a car on a more traditional update cycle.

How to succeed
Many of these factors can be fixed. They also chime more with private buyers than business buyers, who are more concerned with cost. Chinese makers would be well-advised to push harder into this market.

In the UK, the fleet market dwarfs the private market, and the situation is similar in Europe. Selling en masse to fleets and rental companies gets more cars on the road and allows more data about reliability to feed into the market.

The road to succeeding in a new market such as the EU will be slow and bumpy. But it’s clear that China is laser focused on its global push. It remains to be seen whether this lack of buyers can be turned around.

 

MiG-29SMT

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View attachment 252179



If the U.S. and Europe get what they want—a crackdown on Chinese imports—it doesn’t feel like it would result in better cars. It feels like it would keep buyers of those markets locked to cars that aren’t executed as well. It’s nakedly protectionist because deep down, all of the Western auto executives and some hawkish China pundits understand that Chinese EV and PHEV models are more compelling than what European, other Asian, and American brands have come up with.

I’ve seen it with my own two eyes. We’re cooked.
Quality of Chinese cars disappoints buyers in Uzbekistan
Although perception of products 'Made in China' is unfavourable, Chinese car manufacturers are beginning to conquer the Uzbek market and 'lemons' are becoming commonplace.

By Rustam Temirov
TASHKENT -- Chinese cars surging into the Uzbek market have so far seen mixed reviews amid stories of poorly made "lemons" and erratic repair service.

One such victim is Marina Gromyko, Podrobno.uz reported in June, citing her account shared with the Potrebitel.uz community.

Uzbekistan imported more than 10,000 cars, 6,007 of them Chinese, in January-March of this year. The two other leading sources of cars were South Korea (3,643) and the United States (460). The other countries that exported cars to Uzbekistan in that time are shown on right from top to bottom: Hong Kong (China), Japan, Germany, Austria and the United Arab Emirates. [Caravanserai]

"We bought a Chery Tiggo 7 Pro, fully loaded, on March 14, 2023. On April 12, the car began to jerk and stall. We took this problem to the official Roodell service centre, and then to the ADM-Aster service centre at the dealership where we had purchased the car," she said.

"But they shrugged their shoulders everywhere and could not determine the cause. So we drove for another couple of weeks, periodically visiting their service centres," Gromyko said.

By May, when it became impossible and dangerous to drive the car, she left it at the ADM-aster service centre.

After a week of silence from the centre, Gromyko appeared in person, where she bumped into one of the managers, who was unaware of the car's problems or its week-long presence with no one working on it.

A week later, Gromyko was told that the gearbox needed to be replaced and ordered from China, and that it would take two months.

Similar incidents have been reported in other regions of the country.

Speaking on condition of anonymity, an employee of a Samarkand dealership selling Chinese cars told Caravanserai that in the last three months several cars have been defective.

The dealership repaired defects for three car owners, but it took more than a month and justifiably upset the customers, she noted.

"The ... story of Marina Gromyko's stalled engine circulated widely on social networks and negatively impacted the company's image. Car sales also dropped sharply," she said.

Chinese domination
The Samarkand dealership alone has averaged more than 100 China-made cars sold per month by offering interest-free loans and favourable terms of the purchase.

Prices range from $26,000 to $40,000, which is very expensive for Uzbekistan. With a down payment of 25%, buyers qualify for 0% interest.

Dealers also offer customers a five-year service warranty. However, as seen in Gromkyo's case, the warranty service is not well organised, and customers are forced to wait more than a month before a competent mechanic can be found to fix the problem.

While more expensive than domestic cars made by UzAuto Motors, Chinese cars' main appeal is that they are cheaper than similar cars from Japan or Korea -- especially electric models.

But the Chinese cars dominating the Uzbek market are often not adapted to local conditions, according to Tashkent resident Shukrullo Khamidov, who has been a driver for 40 years.

"They frequently lack a seat-heating option. They simply didn't account for Uzbekistan being cold in the winter," he said.

"There are too many different devices. As for the touchscreens, they are not sensitive enough. To this, add the menu that is not always easy to use. And the voice recognition doesn't work well," Khamidov told Caravanserai.

Chinese car companies often refuse to help customers with their problems, he confirmed.

Conquering the Uzbek market
Vehicle ownership is growing in Uzbekistan as China makes inroads into the market. As of January 1, individuals in Uzbekistan owned 3,396,500 light vehicles, 629,400 more than the previous year.

Chinese exports to the Uzbek auto market increased sharply after the Kremlin's invasion of Ukraine and Western sanctions against Russia.

Today, Chinese automobile makers have almost completely displaced their Russian counterparts' cars, which previously led all foreign suppliers in the Uzbek market.

The imports come amid an aggressive Chinese business policy and the construction of factories in Uzbekistan.

One such example is a facility to produce premium Exeed cars in Sirdaryo (Syr Darya) province. The future enterprise and network of showrooms were announced in Tashkent in May this year.

Initially, 5,000 cars will roll off the assembly line each year, with annual production volumes expected to increase to 20,000 vehicles.

In the summer of 2022, BYD, another Chinese company, announced that its cars would be manufactured at local automaker UzAuto's plants. The two companies legally formalised their relationship in January by registering a joint venture called BYD Uzbekistan Factory.

Another Chinese car brand, Geely, plans to have its entire vehicle lineup produced in Uzbekistan by the end of the year.

The number of cars -- including Chinese models -- on the roads of the capital and across the country grows almost daily, according to Nuriddin Irgashev, a 70-year-old mechanical engineer from Tashkent.

"Before, there were mainly trucks, tractors, construction equipment and minibuses. Now it is clear that there are more cars from China," Irgashev told Caravanserai.

"But I would not risk buying such a car," he added.

"I've heard many complaints about service. What's more, people in the older generation and my 'middle' generation are somewhat prejudiced against the 'Made in China' label."

Uzbekistan needs to liberalise its car market, said Tashkent economist Anvar Nazirov.

"China is really very quickly 'stamping out' solar panels, electric vehicles... But their quality is low, even by Asian standards, compared to Korean, Japanese and even Indian products," Nazirov told Caravanserai.

The quality of products produced in Europe, the United States, Japan and South Korea is an entirely different matter. Uzbeks should not chase after what is cheap and low quality, whether it is solar panels, cars or other goods, he said.

Uzbekistan needs to co-operate more actively with the West, the European Union, Japan and South Korea, including in plans for transitioning to electric vehicles, said Nazirov.

"And in this case, choosing China as a strategic partner is a big mistake, since as of today China cannot supply high-quality products, particularly for the Central Asian market," he said.


Are you thinking of buying a Chery Tiggo 2 Pro? Careful! In this video we will show you why you should NOT buy this car, considered the worst of 2024 in its category.



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Why it is a waste of money to invest in this car, considering its poor performance and high maintenance cost.

Don't miss this video before making a decision that could cost you dearly
 
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MiG-29SMT

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We are the world's fourth largest exporter of light vehicles and auto parts, representing 3.5% of GDP and 18.3% of manufacturing GDP, generating 32% of manufacturing exports. As the main supplier to the American market, we generate a surplus of US$85 billion in the trade balance, surpassing tourism and oil. The 13 assembly plants and thousands of auto parts companies generate almost a million jobs—generally better paid—representing 22% of manufacturing employment.

The entry of Chinese brands, evident on the streets and in the saturated port of Lázaro Cárdenas or the transportation services of godmothers, can destroy the jewel in the crown of the Mexican industry. This concern is not only of our government, which seems to be clear about it, but of the US and its unions, which fear that, from Mexico, these companies do not need to comply with the demanding rules of the T-MEC, and access the US by paying the tariff of 2.5% favored nation.

This case requires a North American regional approach to confront unfair competition from Chinese manufacturers.
 

SexyChineseLady

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China takes 76% of new ship orders in April.


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Clarkson Research released the latest monthly figures showing the growing divergence. Total orders they calculated reached 4.71 million compensated gross tons for a total of 121 vessels. Overall, the market was up 24 percent year-over-year.

The two countries typically dominate the market with some months a nearly even split in orders or at the beginning of 2024 South Korea was booking larger total orders. However, in April the Chinese yards booked 76 percent of the total orders.
 

Azaad

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Azaad

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The last time CCP leadership under great helmsman 1.0 laid stress on science, the Han slaves had a great time facing the 5 pests revolution & great leap forward which was followed by the cultural revolution to smother criticism of great helmsman 1.0.

With this kind of record one can only wonder what great scientific achievements can the policies of the CCP under the leadership of great helmsman 2.0 engender to offset the sunset of traditional sectors like realty or even infrastructure & its contribution to the GDP?

BTW China's yet to come out with any revolutionary innovation like the West did with the steam engine or electricity or the automobile or N power or SMC or even AI & ML among various ground breaking & epoch making changes brought about by scientific breakthroughs in the West .
 

MiG-29SMT

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On April 28th, a female car owner from Malaysia experienced a sudden and significant decrease in speed while making a low-speed turn in her Chery Omoda 5. The vehicle came to a stop in the middle of the road without any collision, accident, or pothole. Upon inspection, she discovered that the rear axle had broken, with the rusted breakage points showing only two welding points instead of being fully welded around.
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sameer3694

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Massive tariffs incoming on vehicles, solar panels and other products. Up to 100% on Chinese EV's.

So now Chinese vehicles are pretty much all but ruled out in 2nd, 3rd and 4th largest auto markets.(US,India and Japan respectively).
 

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Serbia becomes 11th country to join China’s ILRS moon base project

Andrew Jones May 10, 2024

HELSINKI — Serbia has signed an agreement on participating in the China-led International Lunar Research Station.

Serbia’s Ministry of Science, Technological Development and Innovation signed a memorandum of understanding with the China National Space Administration (CNSA) on cooperation on the International Lunar Research Station (ILRS) earlier this week.

The pair also signed an MoU on cooperation in the field of innovation in the exploration and peaceful use of outer space, in addition to that on the ILRS.

The China-led ILRS envisions constructing a permanent lunar base in the 2030s. This will be constructed using super heavy-lift launchers. China also aims to send astronauts to the moon before 2030.

It will launch precursor missions in the 2020s. These include Chang’e-7 around 2026 and the later Chang’e-8 in-situ resource utilization technology test mission. Both multi-spacecraft missions will target the lunar south pole. The Chang’e-6 sample return mission—currently in lunar orbit ahead of an expected early June landing attempt—is nominally part of the program.

Chinese officials state that ILRS has a number of scientific and engineering goals. These include lunar and Earth science, astronomy, conducting experiments and resource utilization. Others are stated to involve driving technological development and laying the foundation for further space lunar exploration.

Russia this week stated it was developing a nuclear power unit for the joint lunar station, Reuters reported, citing the RIA news agency.

It is not clear how Serbia will be involved in and contribute to the ILRS at this stage. China previously stated its intent to create the ILRS Cooperation Organization (ILRSCO) to oversee and manage the project. Its establishment and subsequent meetings will likely to begin to map out Serbia’s and other parties’ involvement in the project.

Serbia becomes the 11th country to join the ILRS, following Nicaragua and Thailand in April. China and Russia formally announced the joint ILRS project in St. Petersburg, Russia, in June 2021. Venezuela, Pakistan, Azerbaijan, Belarus, South Africa and Egypt signed up during 2023.

LRS SignatoryType
ChinaCountry
RussiaCountry
BelarusCountry
PakistanCountry
AzerbaijanCountry
VenezuelaCountry
South AfricaCountry
EgyptCountry
NicaraguaCountry
SerbiaCountry
Asia-Pacific Space Cooperation Organization (APSCO)Inter-governmental Organization
nanoSPACE AG (Switzerland)Firm
International Lunar Observatory Association (ILOA, Hawaii)Organization
National Astronomical Research Institute of Thailand (NARIT)Institute
University of Sharjah (UAE)University
Adriatic Aerospace Association (A3) (Croatia)Organization
Asociación de Astronomía de Colombia (ASASAC)Organization
Arabaev Kyrgyz State University (Kyrgyzstan)University
PT Universal Satelit Indonesia (UniSat)Firm
Arab Union for Astronomy and Space SciencesOrganization

The ILRS MoU is not China and Serbia’s first bilateral space agreement. The countries signed a memorandum on space technology in 2020. That agreement aimed to put a Serbian flag on a co-designed spacecraft. It also aimed to improve cooperation in the development and use of space technology for a range of applications.
 
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skywatcher

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Serbia becomes 11th country to join China’s ILRS moon base project

Andrew Jones May 10, 2024

HELSINKI — Serbia has signed an agreement on participating in the China-led International Lunar Research Station.

Serbia’s Ministry of Science, Technological Development and Innovation signed a memorandum of understanding with the China National Space Administration (CNSA) on cooperation on the International Lunar Research Station (ILRS) earlier this week.

The pair also signed an MoU on cooperation in the field of innovation in the exploration and peaceful use of outer space, in addition to that on the ILRS.

The China-led ILRS envisions constructing a permanent lunar base in the 2030s. This will be constructed using super heavy-lift launchers. China also aims to send astronauts to the moon before 2030.

It will launch precursor missions in the 2020s. These include Chang’e-7 around 2026 and the later Chang’e-8 in-situ resource utilization technology test mission. Both multi-spacecraft missions will target the lunar south pole. The Chang’e-6 sample return mission—currently in lunar orbit ahead of an expected early June landing attempt—is nominally part of the program.

Chinese officials state that ILRS has a number of scientific and engineering goals. These include lunar and Earth science, astronomy, conducting experiments and resource utilization. Others are stated to involve driving technological development and laying the foundation for further space lunar exploration.

Russia this week stated it was developing a nuclear power unit for the joint lunar station, Reuters reported, citing the RIA news agency.

It is not clear how Serbia will be involved in and contribute to the ILRS at this stage. China previously stated its intent to create the ILRS Cooperation Organization (ILRSCO) to oversee and manage the project. Its establishment and subsequent meetings will likely to begin to map out Serbia’s and other parties’ involvement in the project. The development is, however, notable for a number of reasons.

Serbia becomes the 11th country to join the ILRS, following Nicaragua and Thailand in April. China and Russia formally announced the joint ILRS project in St. Petersburg, Russia, in June 2021. Venezuela, Pakistan, Azerbaijan, Belarus, South Africa and Egypt signed up during 2023.

LRS SignatoryType
ChinaCountry
RussiaCountry
BelarusCountry
PakistanCountry
AzerbaijanCountry
VenezuelaCountry
South AfricaCountry
EgyptCountry
NicaraguaCountry
SerbiaCountry
Asia-Pacific Space Cooperation Organization (APSCO)Inter-governmental Organization
nanoSPACE AG (Switzerland)Firm
International Lunar Observatory Association (ILOA, Hawaii)Organization
National Astronomical Research Institute of Thailand (NARIT)Institute
University of Sharjah (UAE)University
Adriatic Aerospace Association (A3) (Croatia)Organization
Asociación de Astronomía de Colombia (ASASAC)Organization
Arabaev Kyrgyz State University (Kyrgyzstan)University
PT Universal Satelit Indonesia (UniSat)Firm
Arab Union for Astronomy and Space SciencesOrganization

The ILRS MoU is not China and Serbia’s first bilateral space agreement. The countries signed a memorandum on space technology in 2020. That agreement aimed to put a Serbian flag on a co-designed spacecraft. It also aimed to improve cooperation in the development and use of space technology for a range of applications.

Serbia, situated on Europe’s Balkan Peninsula, has a modest space sector. Serbian universities and research institutions are involved in space sciences and related fields and engaged in international projects. The University of Belgrade has, for example, engaged research in astrophysics, satellite engineering and remote sensing.
Evidently, the Moon will be gradually carved up by the two geopolitical blocks over the next decade.
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SexyChineseLady

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So now Chinese vehicles are pretty much all but ruled out in 2nd, 3rd and 4th largest auto markets.(US,India and Japan respectively).
India buys very very very very very few EVs. Japan just a few more and BYD has dealerships there :)

95% of all EVs are in China, US and EU. The other 5% is for rest of the World :)

Among the RoW, it is ASEAN and Brazil dominating. India's market is very very tiny even in the remaining 5%. So losing that market is kind of sad but irrelevent for now ;)

But having ASEAN and Brazil is better :D

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In China, the number of new electric car registrations reached 8.1 million in 2023, increasing by 35% relative to 2022.

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