https://ft.com/content/bf4aa7c8-5eb9--909f-b37d
China has said it will rein in expansion of the country’s electric vehicle sector, as Beijing responds to western criticism of its industrial and trade policies that have contributed to a wave of Chinese car exports.
The EU investigation followed complaints that vast subsidies and bank lending from Beijing had underpinned the expansion of Chinese manufacturers.
European companies fear that China is building EV plants far beyond the levels needed to meet domestic demand, following the pattern seen in steel, aluminium and solar panel manufacturing, sectors in which China has squeezed out competition internationally.
While foreign carmakers slow to transition to EVs have been the worst hit by intense competition in China, scores of local companies are also struggling to compete.
“The biggest concern is that the market for EVs has quickly become supersaturated and that a vicious price war is just around the corner,” Louis Gave, an expert with Gavekal Research, wrote in a research note this week.
“Now that automakers have ready access to generous bank credit, the path of least resistance is to try and gain market share and kill off competition by slashing prices and margins.”
’I'm no fan of China but their success in promoting an EV industry that is now pushing out more advanced EVs with longer range, and lower cost should be applauded. Stagnant EU industrial policy has propped up automakers who are behind the curve and their complaining now strikes me as weakness more than anything. If you speak to engineers at top car firms it is widely acknowledged that Chinese EV makers have made real advances in the tech, the culmination of taking a real risk EVs vs ICE a long time ago.
@PollingZoeLibertarian4mos4MO
Chinese EVs are cheaper because of huge government subsidies. Your thesis is assuming that EVs are going to replace ICE cars. That is quite uncertain at this stage. EVs are being rejected by the market.
@Independ3ntGenesisGreen4mos4MO
Who do they think they are fooling? Look at steel as a precedent and you know what game is being played. China is the largest producer of electric vehicles while supplying domestic power with new coal plant and dumping exports.
@CharismaticSenateGreen4mos4MO
Who do they think they are fooling? Look at steel as a precedent and you know what game is being played. China is the largest producer of electric vehicles while supplying domestic power with new coal plant and dumping exports.
@ISIDEWITH4mos4MO
@ISIDEWITH4mos4MO
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