Comment by nneonneo

From TFA:

  Government subsidies in China — while 5 to 10 percent of Chinese automakers’ capital spending, estimated O’Donovan, compared to about 1.5 percent in Europe — are no longer the Chinese auto sector’s primary advantage. Chinese carmakers now enjoy deeper structural advantages from their enormous scale, dense supply chains, high factory utilization and automated production.

Several companies in China now tout their “dark factories” where they make or assemble many parts of their cars with no human labour at all. It’s likely that the larger Chinese companies are capable of undercutting European makers even without government subsidies or wage parity.