China encourages EV makers to speed up overseas development

BEIJING: China will step up efforts to encourage its electric vehicle (EV) companies to accelerate their overseas development, said an official at the Industry and Information Technology Ministry, warning that the restrictive measures imposed by a “certain country and region” on Chinese EV will only undermine the interests of global consumers.

The official made the remarks during an exclusive interview with the China Daily after the United States announced that it would investigate Chinese-made electric cars.

Last month, the European Commission started customs registration of Chinese EV imports as part of its broad probe into whether Chinese EV companies are receiving unfair subsidies. These measures against Chinese EVS were implemented without sufficient evidence.

Such practices are not only in contravention of World Trade Organisation rules, they also disrupt the global automotive supply chain, the official said.

“The automotive sector is a typical globalised industry, and its healthy development cannot be separated from the division of labour and cooperation in the global industrial chain,” the official said.

According to the ministry, China has, in recent years, cultivated the largest consumer base for EVS.

“China has also supplied the international community with cost-effective, diverse and reliable EV raw materials and components, injecting strong impetus into the development of the global EV industry,” the official said.

China has been the world’s largest EV market for nine consecutive years.

Data from the Public Security Ministry showed that by 2023, the number of EVS in use in the country reached 20.41 million, accounting for about 6% of all cars in use.

This has offered both Chinese and foreign automobile companies abundant business opportunities, experts said.

Tao Lin, vice-president of Tesla, said the US electric vehicle maker’s rapid growth in China over the past decade cannot be separated from the country’s policy support and favourable business environment.

With unmatched advantages and vast prospects compared with other global markets, China is a “must-have” market for the US company, she added.

In sharp contrast to China’s openness towards foreign EV companies, some countries and regions have adopted a hostile attitude toward Chinese EV makers, accusing them of relying on unfair subsidies without verifiable evidence.

Wei Jianguo, former Commerce Viceminister, said that such accusations are groundless.

“The rapid development of Chinese EV companies is built on continuous technological innovation, a well-established supply chain and market competition.”.

Ding Yuqian, head of China Autos Research at HSBC Qianhai Securities Ltd, said that China has the world’s most competitive EV battery supply chain.

Noting that the most expensive single element of an EV is its battery, she said that carmakers in China have access to high-quality batteries produced at a relative cost advantage, with manufacturers continuously improving the technology.

The official from the Industry and Information Technology Ministry said the ministry will strengthen high-level, open cooperation in the EV sector with other countries to ensure China’s technological innovation benefits people worldwide.

“The rapid development of Chinese EV companies is built on continuous technological innovation, a well-established supply chain and market competition.”