Why Cheap Chinese EVs Could Decimate Canada’s Auto Industry: The Zebra Mussel Threat

I asked Google Gemini to turn a social media reply that I made into a blog post. I think it turned out quite nicely, because my post was what matters most when working with AI: a quality prompt.

I then ran Gemini’s response through Grammarly, and clicked “Citation Finder”. (Is it just me or does that icon look like a map of Ohio?) Grammarly surprised me with the quality of the citations it supplied, so i am including them below, beneath the end notes. Saving time is one of the great things about AI – it would have taken me forever to find the citations, and chances are i would have gone down a few rabbit holes in the process.

My original rant supporting the maintaining of tariffs on cheap Chinese EVs:

Google Gemini’s response:

The Zebra Mussel Threat: Why Cheap Chinese EVs Could Decimate Canada’s Auto Industry

It’s tempting to cheer for the arrival of cheap Chinese electric vehicles (EVs). Who doesn’t love a deal? A new, affordable EV seems like a win for consumers, a way to accelerate the transition to electric mobility without breaking the bank.

But this short-term benefit, I argue, masks a catastrophic long-term threat. The influx of ultra-low-cost Chinese EVs isn’t a tide lifting all boats; it’s the automotive equivalent of zebra mussels in the Great Lakes.

Short-Term Gains, Long-Term Destruction

Zebra mussels are small and invasive, but initially, they didn’t seem like a huge deal. Now, they’ve clogged water pipes, harmed native species, and caused $7 Billion in damage so far¹. The cheap EV analogy is chillingly accurate.

The immediate “woo hoo” of a deeply discounted electric car will quickly be drowned out by the noise of shuttered Canadian factories and a decimated domestic auto industry.

We already have a stark example of this kind of economic invasion right on our main streets: Dollar Stores. While they offer undeniable short-term savings to consumers, their relentless expansion has systematically suffocated countless local mom-and-pop shops—the backbone of community economies.

Furthermore, studies indicate that grocery stores close when dollar stores move in, and lower income households spend 15% less on produce. This results in nutritional inequality, as higher income households remain unaffected².

The benefit is felt on a single receipt; the damage is felt across an entire town.

Canada would become more of an Economic Hinterland, Serfs to China

If Canada’s traditional auto industry—a pillar of our manufacturing sector—is unable to compete with state-subsidized, low-cost Chinese imports, the consequences for the entire nation will be massive and, likely, irreversible.

Industrial Decimation: Our already-fragile industrial capacity will be further hollowed out. Thousands of high-paying, skilled manufacturing jobs will vanish, gutting the economic heart of provinces like Ontario.
The Hinterland Effect: Canada risks becoming even more of an economic hinterland, with our manufacturing and R&D functions outsourced. The economic center will shift even more decisively to China.
Economic Serfdom: Ultimately, we would become economic serfs, dependent on a single foreign power for our transportation needs.

The Cost of a Chines Monopoly on EVs for Canada

And here’s the kicker that should terrify every consumer: once China has effectively gained full control of our auto market—by eliminating or severely weakening domestic competition—those “cheap EVs” won’t stay cheap for long.

A monopoly allows the price setter to set prices as they see fit. After the competition is gone and dependency is established, the prices for parts, service, and the vehicles themselves will almost certainly climb, leaving Canadian consumers with no viable alternative.

We need to look beyond the alluring sticker price and recognize the long-term price we’d be paying: the irreversible loss of our industrial sovereignty and the health of our domestic economy.

What do you think is the right balance between offering consumers affordable new EVs and protecting Canada’s vital domestic auto industry?

Grammarly References:

(2024). Fisheries and Oceans Canada conducts second roadside inspection blitz to prevent the spread of Zebra Mussels. Fisheries and Oceans Canada. https://www.canada.ca/en/fisheries-oceans/news/2024/08/fisheries-and-oceans-canada-conducts-second-roadside-inspection-blitz-to-prevent-the-spread-of-zebra-mussels.html

(2024). Dollar Store Entry Affects Rural Grocery Stores More Than Urban. U.S. Department of Agriculture, Economic Research Service. https://www.ers.usda.gov/amber-waves/2024/may/dollar-store-entry-affects-rural-grocery-stores-more-than-urban

(2024). China Surtax Order (2024). Canada Gazette, Part 2, Volume 158, Number 21: China Surtax Order (2024). https://gazette.gc.ca/rp-pr/p2/2024/2024-10-09/html/sor-dors187-eng.html

(2024). Canada implementing measures to protect Canadian workers and key economic sectors from unfair Chinese trade practices. Department of Finance Canada. https://www.canada.ca/en/department-finance/news/2024/08/canada-implementing-measures-to-protect-canadian-workers-and-key-economic-sectors-from-unfair-chinese-trade-practices.html

(2024). Canada announces consultation to protect Canadian workers and electric vehicle supply chains from unfair Chinese trade practices. Canada.ca. https://www.canada.ca/en/department-finance/news/2024/06/canada-announces-consultation-to-protect-canadian-workers-and-electric-vehicle-supply-chains-from-unfair-chinese-trade-practices.html

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