Chinese Government Takes Control Over Unregulated Electric Vehicle Projects

The Chinese government is expected to control new electric vehicle (EV) projects within the country through strong measures, according to a report by the Financial Times on January 22, 2024. Xin Guobin, the deputy head of the Ministry of Industry and Information Technology, said in an interview with the Financial Times that there are some instances of disorderly competition.

The Financial Times reported that China’s EV industry is a true powerhouse. However, it is under harsh scrutiny, particularly in Europe, due to subsidy policies that disadvantageously compete with Europe, and it is embroiled in a trade war with North America and Europe.

Last September, the European Union initiated an investigation into Chinese-made electric vehicles. With concerns that China is building EV factories that far exceed domestic demand, the investigation is looking into what constitutes China’s unfair subsidies and bank loan campaigns that have spurred China’s excessive growth.

Meanwhile, the United States and Europe are tightening regulations on Chinese-made cars and electric vehicle parts sold domestically. The U.S. tariffs are so high that China is turning its eyes to other regions such as South America, Asia, and Europe.

China overtook Japan last year to become the world’s largest car exporter, but most of these were internal combustion engine cars sold in Russia. Nevertheless, Chinese-made electric vehicles and batteries are a big business outside China.

According to Counterpoint Research, over 94 brands in China offer more than 300 electric vehicles, but Geely Auto and BYD are the companies that have the most significant impact outside China. The Financial Times mentioned that Chinese MG, BYD, and Chery Automobile are exploring sites in Mexico and discussing with managers for better access to the North American market. MG plans to build a $2 billion factory, and BYD is increasing its investment in its factory by hundreds of millions of dollars, which is seen as a wake-up call to Washington.

By. Global Auto News