If you build them, they will drive

As China’s reform and opening efforts have matured, so have its strategic industrial policies. There are three main rationales for developing the new-energy vehicles (NEV) industry:

1. energy security,
2. environmental protection, and
3. economic competitiveness

Throughout the 20th and 21st centuries, hydrocarbons have been the primary source of energy for modern economies. Access to a plentiful and inexpensive supply of oil is high on the strategic agenda of every nation. China imports a majority of its oil; anything that reduces its dependence on foreign oil and shifts reliance to domestic sources such as coal, renewable and nuclear energy, is beneficial.

In this article, AlixPartners automotive and electric vehicle expert Steve Dyer discusses the importance of NEVs in China, as well as how China approaches NEV industry development. The article also explores the growth drivers of the NEV market and how all the various NEV brands are fighting to survive in China. Continue reading the full article to learn more.

This article was first published on The American Chamber of Commerce, Shanghai bi-monthly magazine: September/October 2021 edition.

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