Xi vs Trump: Inside the Chinese Economic Machine

China's state-directed "catfish" competition strategy crushed auto margins to 3-4% to win global market share, pressuring Western manufacturers who can't match subsidized losses.

• Catfish strategy: China grew its EV/battery industry via generous subsidies and protection, then let in Tesla's Shanghai factory in 2019 as a 'catfish' to force domestic producers to strengthen or die.
• Profit sacrificed for share: A decade of state-directed competition has driven Chinese auto industry profit margins down to 3-4%, unlike German rivals who must satisfy private-capital return demands.

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