US media: The rise of Electric Vehicles in China, Detroit is uneasy

Source: Global Times

The Detroit News article on May 12, original title: China's lead in electric vehicles continues to expand, which is how bad for Detroit Experts say that China produces and sells more electric vehicles than any other country, and is expected to continue to grow in the next few years, surpassing its competitors in the United States. To that end, Democrats pushed for legislation and poured money into helping U.S. automakers. Some U.S. policymakers and analysts worry that dominating the electric car space could allow China to weaponize its advantage and "dump" prices into global markets, hurting michigan-based competitors and their workers.

The data shows that Chinese companies produce and sell nearly half of the world's electric vehicles and are rapidly expanding their lead. Michael Dunn, CEO of consultancy ZoZo Go LLC, expects China to account for about 60 percent of global production by 2025. Most of China's electric vehicles are currently sold domestically, but manufacturers say they plan to enter Europe and the United States soon.

Some people also believe that China's dominance in the field of electric vehicles does not mean that it will be dumped in the future. Linda, a professor of corporate strategy and international business at the University of Michigan, said: "I don't think China will dump electric vehicles as a state-backed strategy, because it doesn't need to do that, its home market is already the largest and growing faster than other places." Even if exported, there are many other large markets in Asia. "In these markets, Chinese companies have no competitors.

Mark Wakefield, global co-head of automotive and industrial operations at consultancy AlixPartners, said the Chinese government-funded EV strategy began years ago, while some countries in Europe and the United States have only recently decided to follow suit. Electric vehicles do not operate in a completely free market anywhere. Whether through incentives or regulation, governments are promoting related production and marketing, and "Chinese see an opportunity for leapfrog development, they have long been promoting it."

If there is a dumping threat in the future, Dunn said, it is also because China has a unique ability to discover technology and commercialize it faster than others. Tesla, for example, entered the Chinese market and soon built a $2 billion factory. At the same time, it was announced that the Tesla factory built near Berlin has not yet started. Dunn said: "It's called Chinese speed. Chinese companies will build that capability, and they'll get those cars on the road and exit. All of a sudden, you realize, wow, we'd better hurry up. (By Riley Bekin, translated by Wang Beizhe)