Why economists are slamming Albo for splashing taxpayer dollars to subside Chinese-made EVs like MG, BYD GWM and Teslas

Anthony Albanese has been lambasted by economists for wasting taxpayers’ money to subsidize Chinese electric cars as prices threaten to fall as early as next year.

Despite Australia’s growing debt crisis, Labor this week announced low-interest loans to buy an electric car.

The policy would cover employees who earn less than $100,000 per year, meaning everyone earns a lower-than-average full-time salary.

But the taxpayer-subsidized loans would also be available to essential workers making six-figure wages, including police officers, teachers, firefighters and nurses.

The government is providing $150 million to the Clean Energy Finance Corporation to provide interest on loans up to five percentage points lower than standard personal loan rates.

This means someone can buy an electric car at an ultra-low interest rate of just 1.2 per cent, compared to the Commonwealth Bank’s 6.2 per cent guaranteed loan rate for those buying an electric vehicle.

But China, the world’s largest electric car maker, is expected to ship many more electric cars to Australia next year when new US President Donald Trump imposes his 60 percent tariff on Chinese goods sold in the US.

Daniel Wild, deputy director of the Institute of Public Affairs think tank, criticized the government’s move, saying taxpayers should not subsidize Chinese electric cars, which already control 80 percent of Australia’s EV market.

“Amid a cost of living crisis and with rising national debts, it is remarkable that the Albanian government is using our tax money to create an ideal dumping ground for cheap Chinese electric cars,” he told Daily Mail Australia.

“It is not the role of the federal government to encourage sales of foreign-made products that are flooding our market.”

Climate Change and Energy Minister Chris Bowen argued the government policy would save electric car buyers more than $8,000 on a $40,000 loan over seven years.

“Only the Albanian Labor Government will ensure that more Australians can get behind the wheel of cheaper cars and start saving on their commutes,” he said.

“Discounted loans help break down the barriers to ownership, allowing more Australians to drive cars that can save them thousands of dollars a year.”

But Wild said the policy would overwhelmingly favor Chinese interests, with the best-selling Teslas built in Shanghai, while BYDs, GWMs and Polestars are also Chinese-made.

“The federal government’s climate and energy policies are a huge free kick for Chinese interests and put control of our energy and manufacturing future squarely in China’s hands,” he said.

‘Australians have every right to ask themselves what the subsidies they receive to finance electric cars, as well as solar and wind turbines, actually achieve?

The policy would overwhelmingly favor Chinese interests as most Teslas sold in Australia are made in Shanghai, while BYDs, GWMs and Polestars also come from China.

Daniel Wild, deputy executive director of the Institute of Public Affairs think tank, said taxpayers should not subsidize Chinese electric cars, which already control 80 percent of Australia’s EV market.

“And that is a more expensive and unreliable energy system, which is not in our national interest.”

But the Federal Chamber of Automotive Industries backed Labour’s policy, despite Tesla and Polestar withdrawing from their membership in protest over claims they favor petrol and diesel car makers.

Chief executive Tony Weber said: ‘Demand growth for battery electric vehicles is slowing in markets around the world as governments remove incentives and consumers face the realities of making the shift, which will require higher purchase prices, availability of charging infrastructure and models that fulfill their work. and recreational needs.”

About a dozen Chinese car brands are expected to arrive in Australia over the next two years, including Zeekr, XPeng Motors, Geely, owner of Volvo and Polestar, Lynk and Co, Leapmotor, Jaecoo, Changan and Nio.

Chinese cars sold in Australia are not subject to tariffs under a 2015 free trade agreement.

The administration of US President Joe Biden is considering a ban on Chinese connected car technology this year on national security grounds.

The Albanian government policy was announced on Thursday, a day after the Finance Ministry’s Mid-Year Economic and Fiscal Outlook showed that gross public debt would surpass $1 trillion in 2025-2026, representing 36 percent of gross domestic product.

Australia has also committed to reducing carbon emissions by 43 percent by 2030, with diesel vehicles and all-wheel drive still dominating sales figures.