Two Cents

- This is a Geely Galaxy M9.

If you're an American, you probably haven't heard of it because it's not available in th but after taking it for a spin, the auto experts at Edmund called it incredibly competitive to similarly sized SUVs like the Kia Telluride or the Hyundai Palisade.

Reviewers have been impressed with the M9's exceptional power, long battery life, and quick charging, and it even has a mini fridge.

- But perhaps the most impressiv the fact that in China, yo can buy one for the equivalent of about $25,000, around half the price of its stateside competitors.

Of course, if it's eve actually available in America, it would cost somewhat more than but it would still likely be one of the best auto deals on th - And it goes beyond luxury hybr - Chinese auto companies make a wide variety of high-quality vehicles with cutting edge tech that often outclass even renowned brands like Tesla at sticker prices that would mak American consumers' hearts skip - But for precisely that reason, many US political and business leaders insist that Americans shouldn't be able to buy them.

(upbeat music) - In April 2026, Ford's CEO Jim Farley said that the import of Chinese cars would be devastating to our coun He argued that because American manufacturers wouldn't be able to beat China's Chinese cars would quickly dominate the market, leading to the collapse of the US auto industry.

- But this is not just capitalis While production in China is che thanks to the lower cost of labor and materials, the Chinese government also heavily subsidizes their domestic industries, pouring billions of dollars of s into companies like electric car manufacturers.

As a result, they have enough production capacity to replace all the vehicle sales in the US.

According to Farley, there is no way this is a fair fight.

- There are also national security concerns.

Chinese cars come equipped with a host of sensors and recording devices that can transmit data back to the homeland, which is why the Commerce Depart prohibits the sale o internet-connected vehicles in t that utilize Chinese or Russian That coupled with the 100 tariff amounts to a defacto ban of Chinese automobiles on US roa So while drivers in Asia, Europe, Latin America, and Australia get to enjoy China's modern tech and low prices, and again, many American consumers are mostly un that these brands even exist.

- But some people think this should change.

Americans are increasingly burde with a high cost of living, and cars are responsible for a big chunk of that.

The average price for a new car is almost $50,000, up from just over 30,000 in 2012 With interest rates above normal car loans are more expensive tha prompting some buyers to accept that last six years or more, which is almost never a good ide Don't do it.

Thanks to the complex tech in ne auto repair prices have also spi with an average visit to the shop costing over $800.

And of course, we're al aware of what's been happening with gas prices since the Trump administration decided to start a war in the Middle Eas - With so much upward pressure on the cost of transportation, some think that American consumers deserve access to affordable Chinese cars and that US automakers woul have nothing to complain about.

In a recent op-ed in "The New Yo Economist Clifford Winston notes over the last few decades, vehicle manufacturers like Ford have been quietly discontinuing their cheaper models in favor of pricey luxury models that carry a higher profit margi - In 2012, there were about a dozen vehicles available to US consumers that cost below $25,000, adjusted for infl Today, that number is four, and models that began their lives as affordable, stripped down sedans known as ec like the Honda Civic have slowly into more sophisticated, more co and more expensive versions of their former selves.

- Winston puts some of the blame on the so-called K-shaped econom As Americans on the lower rungs of the ladder slide deeper into debt and hards high income Americans are doing better than ever.

Car companies realize they can make a lot more money selling a second luxury SUV to a wealthy household than making affordable sedans for ordinary commuters.

- Winston also cites protectionism as a culprit.

For over 50 years, the US government has shielded US automakers from global competition, which may have made them less in and efficient and kept prices for US consumers above global market value.

The Trump administration's tariffs, for example, hit affordable vehicles harder than luxury ones since they're more likely to be made overseas.

- But there may be more to the rise in vehicle prices than just corporate greed and trade policy.

For one thing, today's cars are simply better products than they were in 1980, safer, more fuel efficient, and more comfortable.

This is an economic concept known as hedonic adjustment, which proposes that inflation may not be as bad as it seems because we fail to take into account the increase in product quality.

It's not fair to compare the price of a brand new iPhone to that of a brick from the 1980 because you can get so much more out of it.

- But critics of hedonic adjustment point out that consumers are often forced to pay more for the newest tech whether they want it or not.

You can still buy a flip phone for a hundred bucks, but good luck finding a ne sedan without a computer in it.

A struggling commuter might not want all the bells and whistles, just something to get them to work.

- Consumer trends may also be to Americans have always liked big but since the 1990s, sales of SUVs, crossovers, and light trucks have surged, overtaking smaller sedans.

Drivers prefer being high up, having more cargo space, and the perception of safety, even if it's just a perception.

Automakers have been happy to accommodate them, especially since these vehicle types tend to be pricier and have looser fuel efficiency - Clearly, there is no one cause of the auto affordability proble Car companies, policymakers, and consumers have all played th but are Chinese cars the answer?

- The US auto industry is a big no on that, predicting wholesale economic de but then it's hard to take their word for it since they said similar things about seat belts, airbags, and catalytic converter - Although there are ver real concerns about fair trade and national security, it's also undeniable tha these are high quality vehicles with superior technology, and the more Americans find out about them, the more they'll expect to acces Some economists predict a solution not unlike that of Japanese cars in the '80s, allow the sale of Chinese vehicl but with heavy conditions, like building factories in the U hiring American workers, and cutting subsidies.

- Of course, unlike Japanese com China's auto industry is controlled by the state, so it's unclear whether they'd agree to these terms, - But perhaps there's a compromi that can foster healthy competit and innovation while giving American consumers some much needed price relief.

- And mini fridges.

I really want the mini fridge.

- [Both] And that's our two cent