[mensetmanusman]

The reason is basically that Chinese cities compete with each other through financial instruments that basically put the citizens of the city on the hook for the success or failure of their car companies.

Because the leaders of the cities are making the decisions and not the citizens, the leaders are more than happy to drain the citizen’s bank accounts and try to win in this competition. (Leaders can’t be voted out)

In a roundabout way it’s very similar to how pegging the currency to the dollar reduces the earning potential of every Chinese citizen as a type of hidden wage theft that the central government uses to run the economy as they desire.