Month: October 2025
Mike Blake/Reuters
- Rivian isn’t in the Chinese market, but it still pays attention to EVs abroad.
- CEO RJ Scaringe told BI that the company tore down a Xiaomi SU7 to learn what’s inside.
- The CEO said the SU7 is “nicely done,” but there’s nothing new to learn from it.
Rivian doesn’t have a footprint in China’s highly competitive EV market, where companies like BYD and Xiaomi reign supreme.
That doesn’t mean the California-based EV maker isn’t paying close attention to the world abroad.
In an interview with Business Insider, Rivian CEO RJ Scaringe said the company tore down a Xiaomi SU7, a highly popular EV sedan in China, as part of an industry-standard practice of benchmarking other vehicles in the market.
The SU7 is the Chinese smartphone juggernaut’s success story. It was launched in early 2024 with a starting price tag of $30,000 and helped Xiaomi blow past its annual delivery expectations by November of the same year.
The car was praised by Ford CEO Jim Farley. Business Insider previously wrote that the SU7 delivered on performance. After Rivian took a look, Scaringe agrees.
“I’d say it’s a really well executed, heavily vertically-integrated technology platform,” Scaringe said, referring to how the company develops the car’s tech stack in-house. “Nicely done.”
The CEO said the SU7 would be one of the cars he’d consider buying if he were living in China — that is, of course, since Rivian’s not there.
However, Scaringe said there’s no secret sauce inside the car that makes the SU7 cheap and a runaway success in the country.
“Cost — we understood how they’ve arrived there,” Scaringe said, adding that “there’s nothing we learned from the teardown.”
The CEO points to macroeconomic factors like the low cost of labor and the Chinese government’s support for EVs.
“The cost of capital is zero or negative, meaning they get paid to put up plants,” Scaringe said of Chinese companies. “It’s a very different opportunity.”
Scaringe added that, while the US has provided loans, the idea of a production plant being supported through a government grant is “just not something that exists in the US.”
The Department of Energy announced in January a $6.6 billion loan to support Rivian’s new manufacturing plant in Georgia.
A mix of looser regulatory hurdles, lower labor costs, and more government subsidies allow China to churn out more affordable electric cars, Travis Fisher, director of energy and environmental policy studies at the Cato Institute, previously told Business Insider.
“When you take the cost of capital down to zero or less than zero and you have a cost of labor that’s very low — you can do the math, you can build a spreadsheet that can arrive at exactly how they’re doing it,” Scaringe said.
It’s a factor that the Rivian CEO said he wished more people talked about to de-mystify why China’s rate of electrification surpasses that of the US.
“I think it’s like Wizard of Oz,” he said. “I think when people think there’s a Wizard of Oz, it’s not helpful. It’s like there is no magic in the world. Everything could be analyzed and calculated.”
It has been obvious even to casual observers of the Russian political scene that the country, ever since the dissolution of the Soviet Union, has had a severe problem with ideological self-definition.
This is not surprising. The country has gone through remarkable political changes over a century — changes that required ideological reformulation at every step of the way.
A hundred years of change
In a span of 100 years, it has overthrown a centuries-old monarchical rule that drew its ideological inspiration from the Eastern Roman Empire. It then created the embryo of a new universalist classless state that, in theory, should have been joined by all societies that adopted communism.
This cosmopolitan project became Russianized after the Second World War, with Russia being, tacitly, treated as a senior partner in the Union. (Being a senior partner did not always come with advantages, as Russia was the only republic without its own Communist party or its own Academy of Sciences.)
And then, it decided to destroy that Union, which some of its population and its leader in particular perceived as a burden, and to create a big — but much more territorially limited — oligarchic republic. In its brief existence, it oscillated between anarchy and rule of business leaders-cum-assassins.
Under Putin, the rise of intelligence services to the top created an entirely new situation that, in turn, required an ideological rationalization.
The intelligence services ascend
The uniqueness of the rise of the intelligence services to the top ranks of power in Russia is often not correctly assessed. It is true that secret or intelligence services were always very powerful, in the Empire or the Soviet Union. But in both cases, they were not the deciders.
The Okhrana, the secret police force in the late 19th and early 20th century, was under the formal and often (but not always) effective control of the Tsar and its entourage. For sure, like any intelligence service, at times it carried out operations on its own. Most famously and bizarrely, in order to evoke workers’ discontent, it created “false” trade unions — an operation that backfired spectacularly. But it certainly did not rule the land.
Likewise, the power of Cheka, NKVD, MVD and finally KGB derived from the Politburo and later from Stalin. And even after Stalin, all the way to the terminal crisis of the Soviet Union (under Andropov), the power emanated from the Politburo.
In a recent book on Russia, the NKVD’s omnipotence is allegedly illustrated by its massive executions of people during the Great Terror. But this is a misinterpretation of its power.
The NKVD was simply executing people on Stalin’s orders. It was a tool, not a decider. Even under Beria, who surely had more power than any of his predecessors, it was doing what it was told. The party controlled both the sword and the shield that are shown on Cheka’s coat of arms.
What is Russia?
This head-spinning succession of changes over the past hundred years has understandably led to intellectual confusion. What is the Russian idea and the country’s raison d’etre?
Yeltsin, naively, believed that if he organized a (paid) competition for the best national idea, the problem could be solved. Is Russia an empire, a multi-ethnic federation, an ethnic-based country or a community of all Russians anywhere (русский мир)? A beacon for the world or a self-interested imperial power?
The ideological confusion, present since the 1990s, has reached its apogee under the current rule by the secret police. Intelligence services in Russia seem to believe that ideologies can be proclaimed by decree. Ideologies are, it seems, the same as nominations to a higher post or the decisions to designate somebody a “foreign agent.”
It suffices to put together three secret policemen and three university professors in the same room for three days, and they would come up with the ideology that will be then declared by a ukase.
Putin’s Russia: Between empire and autocracy
Putin has therefore formulated two distinct and mutually incompatible ideologies. Domestically, it is the ideology of a great imperial nation that has been unjustly shorn of some of its attributes by Communist, and especially Leninist, rule.
In his famous long historical article, published in the summer of 2021, Putin criticized Russian Bolsheviks and Lenin personally for pushing the Eastern Ukraine revolutionary regime (Donetsk-Krivoy Rog republic) against its own wishes to become a part of the Ukrainian republic.
The “Leninist” borders thus artificially separated eastern Ukraine, populated mostly by ethnic Russians, from their Russian brethren. Communism is attacked for destroying Russia and “Russianness.”
The patriarch, the priests and all the assortment of such individuals known from the 19th century processions are brought back for every state occasion: From the blessing of the troops sent to die on the front, to various anniversaries or funerals.
Putin openly fashions the country (and perhaps himself) on the Tsarist three ideological pillars — autocracy, pan-slavism and orthodoxy. But while these pillars had some sense under the Romanovs, they scarcely have any today, except for autocracy.
Contradictions in Putin’s imperial vision
How can Russia’s ideology be the protection of Slavs and orthodoxy when it is engaged in a war against a Slavic and orthodox nation closest to itself in culture and history?
Indeed, the Tsars also suppressed Ukrainian nationalism (which was an entirely marginal political force then), but they did not send drones on Kiev.
Even autocracy, the only plausible connection between Tsardom and FSB-ism, rests on shaky roots: Autocracy (Emperor, the autocrat, царь самодержец) was based on a multi-century tradition, derived from Byzantine caesaro-papism. It thus had both cultural and historical roots. Nothing remotely alike exists in the current regime.
But to make the ideological confusion complete — and this is my principal point — for international consumption Putin has devised an entirely different ideology. This has happened with force since 2022 and the war with Ukraine.
Russia: The new leader of the global majority?
According to that narrative, Russia is the new leader of the global majority and is leading the rest of the world in the opposition to the hegemony of the richest and most powerful states.
Putin’s international ideology appears like some risible ersatz of Lenin’s 1920s synthesis of Marxism and anti-colonial struggle. But while Lenin was a serious theoretician, the current leaders are not.
Lenin saw the Soviet Union as a prototype of the classless and cosmopolitan state in accordance with key Marxist tenets. Such a state would naturally be an ally in the anti-colonial struggle of the rising Asian and African nations.
It was fully ideologically coherent to support, say, India and China in their anti-colonial struggles even when the main domestic forces in those countries were bourgeois because the Soviet Union stood for internationalism and the end of colonial exploitation.
It is ludicrous to claim for Russia internationally the ideology it explicitly rejects domestically. How can a country that, according to self-description, stands for autocracy and nationalism lead the “Global South” in its struggle for a more equitable world?
An ideological impasse
One cannot affirm the principles of imperialism and nationalism in the morning to one audience, and in the afternoon, when speaking to a different audience, proclaim himself to be an internationalist and in favor of equality of all nations.
Russia thus finds itself ideologically at a total impasse. This applies not only in the projection of its ideology domestically, where similar contradictions exist in the treatment of Tsarist and communist experiences. For example, is Stalin great because he won the Second World War or a villain who mined and exploded hundreds of Russian orthodox churches?
But most crucially at the global level where the contradiction between nationalism for domestic purposes and (alleged) internationalism for foreign purposes shows fully its paradoxical nature.
The high cost of Russia’s conflicted identity
The issue perhaps would not be so important if Russia were some small country where similar ideological contradictions might matter for the country itself, but not for the rest of the world (Serbia and Croatia are such examples.)
But the question of what is the dominant ideology in Russia and how Russia sees itself both in regard to its own history and to the world today, can become (and is) dramatically important because it might lead now, or in a few years’ time, to bigger wars and conflicts and even nuclear apocalypse.
While power is always important, the use of that power is shaped by countries’ and leaders’ perceptions of what they are fighting for, and what they can convince their citizens to die for. That is why the role of ideology is crucial in all modern societies, as indeed it was in the past.
The post Putin’s Act of Desperation: Two Incompatible Ideologies for Russia appeared first on The Globalist.
