The reason for this surprise success was long-term investment from the Chinese Communist Party, which took a gamble in the early 2000s. With the help of generous government subsidies, the eschewing of regulations, and a fair bit of luck, China has emerged as one of the masters of EVs internationally, stoking fears in the, when China realized its inability to compete in the internal combustion engine and hybrid markets.
The Chinese government decided to instead gamble on a new, untested technology — cars fully dependent on electric power. At the time, other countries had no incentive to make the same move, asThe conscious approach to EV development wasn’t the only element behind their success, however. Ted Jenkin, author and CEO of oXYGen Financial, told the“China owns and controls 70% of the supply chain for rare earth , which is a key element for battery production,” he said.
“China took a very different approach than the United States,” Jenkins said. “Instead of taking a Tesla-like approach, they experimented first with motorcycles and electric buses, which helped to propel the overall EV manufacturing strategy used in China today.”. Other incentives, such as eschewing car lisence plate rationing in Beijing for those seeking EVs, also helped boost the industry.