EV firms make waves at China’s people’s congress
• High profile of electric vehicle bosses at parliamentary meeting mirrors shifting priorities
Chinese electric vehicle (EV) makers made a strong showing at the start of the country’s annual parliamentary meeting on Tuesday, bolstered by official recognition of their growing clout on the world stage as they asked for more regulatory support to become global brands.
When Yin Tongyue started Chery Automobile 27 years ago, China’s car industry was dominated by foreign companies and the prospect of Chinese people building their own cars was a pipe dream, he told reporters on the sidelines of the National People’s Congress (NPC), China’s rubber-stamp parliament.
Fast forward nearly three decades and China — the world’s largest car market — has clinched the title of the world’s largest car exporter.
But Chinese carmakers must look beyond sales superlatives to focus on technological innovation, quality reputation and social responsibility, Yin warned.
“To transform from a large car country to a strong car country, it is not enough to rely on sales or scale,” said Yin, a NPC delegate. “We also need to have our own Chinese global brands that are recognised by others around the world.”
Premier Li Qiang, in his work report to the weeklong NPC meeting outlining key government goals, cheered progress in the EV sector, which has been a rare bright spot in the struggling economy, despite an intensifying price war that has squeezed carmakers’ margins.
“China accounted for more than 60% of global electric vehicle output and sales,” the report reads, praising “the 30% increase in exports of the ‘new trio’, namely, electric vehicles, lithium-ion batteries and photovoltaic products”.
Pledging to “consolidate and enhance our leading position in industries such as intelligent connected new-energy vehicles”, China said it would boost domestic spending on EVs via trade-in programmes and the revision of local policies that restricted the purchase of cars.
These commitments show China’s continued support for its prized EV sector. But the government — which extended a tax exemption for the purchase of new-energy vehicles to the end of next year — did not announce new subsidies.
Policy recommendations put forth by carmakers primarily sought regulatory changes to speed up the adoption of new technologies, including autonomous driving.
China’s rise as the top EV exporter, however, has sparked concerns in two important car markets: Europe and the US. Exports have been a key driver of growth for Chinese carmakers as demand in their home market weakens.
The European Commission last year launched an investigation to determine whether to shield EU producers from a “flood” of cheaper Chinese EVs that it says benefit from state subsidies. The US last month launched a probe into whether Chinese “connected” vehicles pose national security risks.
On Monday, Robin Zeng, chair of Chinese battery giant Catl and member of the Chinese People’s Political Consultative Conference advisory body, told reporters that Europe did not have enough “higher-quality” products yet. He also dismissed US concerns over Chinese vehicle data collection as unnecessary and resolvable through communication.
The high-profile presence of EV bosses at the parliamentary meeting mirrored the shifting priorities of Chinese policymakers. Yin was in the company of other heavyweights, including Geely chair Eric Li, Changan Auto chair Zhu Huarong and Xpeng CEO He Xiaopeng.
Pony Ma, CEO and cofounder of tech giant Tencent Holdings, and Richard Liu, founder of e-commerce platform JD.com, used to be regulars at the annual meeting. But in recent years, after a regulatory crackdown on the tech sector, the internet bosses have receded from the limelight.
Another industry with a strong turnout was the chip sector, which has been a target of US export curbs and a focus of China’s efforts to become self-reliant. Prominent industry figures included Zhang Suxin, chair of Hua Hong Semiconductor; and Chen Tianshi, president of AI chipmaker Cambricon.