China’s EV Price Wars Reveal Dangers of Unchecked Market Chaos

China's electric vehicle (EV) market has been a poster child for rapid industrial policy-driven growth — but beneath the dazzling sales figures hides a brewing crisis that Americans must watch closely. The so-called "price wars" tearing through China's EV sector reveal what happens when government-backed expansion creates more producers than the market can sustain, pushing companies into destructive competition and financial instability. BYD, China's undisputed leader in electric vehicles, recently announced a 31% increase in first-half sales to 2.1 million units, nearly half of which were pure electrics. Yet its aggressive price cuts in late May triggered sharp criticism and...