While the two major innovations of autonomous driving technology and solid-state batteries are rapidly developing in China, a revolution in automotive manufacturing is quietly unfolding.
This revolution will not only subvert the hegemony of Europe, the United States and Japan, but also overturn the hegemony of the dollar in the global financial landscape.
A rising China is taking the lead in this transformation, and is taking advantage of the momentum with its independent research and development strength, which is bound to cause violent shocks in the global landscape.
Highlights and pain points of China's new energy vehicles
Speaking of new energy vehicles, as one of the hottest topics at present, its development can be described as a mixed blessing.
On the one hand, excellent intelligent technology has brought unprecedented opportunities to this emerging industry. On the other hand, the long-standing problem of cruising range still discourages consumers. However, it is gratifying that these "pain points" are being overcome by Chinese manufacturers one by one.
First of all, let's talk about the development of intelligent technology. Unmanned driving can be said to be a bright spot in this field.
According to data, the number of patent applications for unmanned driving technology in China will be as high as 370,000 in 2023, ranking first in the world. This is enough to show that the R&D strength of Chinese enterprises in this area is constantly increasing.
FOR EXAMPLE, TESLA, AN INDUSTRY LEADER, CAN BE SAID TO BE THE WORLD'S LEADING AUTOPILOT AUTONOMOUS DRIVING SYSTEM, BUT ITS ADVANCED DEGREE IS ALSO QUICKLY OVERTAKEN BY CHINA'S NEW CAR-MAKING FORCES. The autonomous driving technology of BYD, Xiaopeng and other companies is already comparable to Tesla, and even surpasses it in some indicators.
This is not only reflected in the hardware, but also in the software level algorithm optimization. Industry insiders pointed out that Chinese enterprises have the advantage of independent innovation in core technologies such as algorithm modeling and perception fusion, which greatly shortens the cycle from concept to implementation.
The maturity of these technologies also allows us to see the broad prospects of unmanned driving in the future market. Without human intervention, the vehicle can autonomously complete complex driving actions, which greatly improves driving safety and driving experience. For the average consumer, this is undoubtedly a big boon.
A major breakthrough in solid-state batteries
At the same time, we cannot ignore another pain point of new energy vehicles that has been plaguing the industry - mileage.
After all, for most consumers, cruising range is one of the important considerations when choosing a new energy vehicle. However, with the rapid development of solid-state battery technology, this problem has also taken a turn.
Solid-state batteries are a new generation of battery technology that not only has a longer range than traditional lithium-ion batteries, but is also safer.
Industry insiders predict that in the next five years, the energy density of solid-state batteries will reach 2-3 times that of traditional lithium batteries, which will greatly improve the range of new energy vehicles. In addition, solid-state batteries have the advantages of faster charging speed and lower production costs.
It is not difficult to see that the breakthrough of this technology will greatly promote the popularization of new energy vehicles. For consumers, range anxiety will be greatly reduced, and for the industry as a whole, it will be a major innovation.
It can be said that the double breakthrough of intelligent technology and endurance is paving a road to glory for new energy vehicles. The strong combination of autonomous driving and solid-state batteries is bound to cause severe shocks in the global automotive market.
The core technology is independent and controllable: the chips and components are fully mastered
As we all know, the development of new energy vehicles is inseparable from the support of many key core technologies. From power batteries to intelligent control, from intelligence to autonomous driving, these technological breakthroughs are related to the future direction of the entire industry. For China, a major automobile manufacturing country, its biggest advantage is that these key technologies are almost in their own hands.
The first is the field of chips. Some people may worry that the chip is stuck in the neck, which will become a "soft underbelly" that restricts the development of China's new energy vehicles. But we shouldn't worry too much. Because the data shows that China's R&D level in automotive chips has reached the world's leading level.
Taking the 28nm process as an example, China has not only achieved independent control over the entire industrial chain such as design, manufacturing, packaging, and testing, but also far exceeded the overall market level in terms of sales growth, increasing from US$990 million to US$3.3 billion in three years, a full triple!
Let's look at the field of parts. We often hear that Tesla's "integrated die-casting" technology can be described as a "black technology" in the industry. But do you know that the die-casting machine used by Tesla is actually from the Chinese company "LK Technology". It can be said that China not only has an advantage in vehicle manufacturing, but also basically realizes independent and controllable key components.
In this way, we don't have to worry about any "stuck neck" at all.
Whether it is the core chip or the key components, Chinese enterprises have firmly grasped it to ensure the safety and controllability of the entire industrial chain. This has laid a solid foundation for the future development of China's automobile manufacturing industry.
Leading the future with superior innovation capabilities: the world's largest number of patents
However, in addition to the advantage of independent and controllable technology, another magic weapon of China's automobile manufacturing industry is its amazing innovation ability.
Data shows that in 2023, China will have as many as 370,000 automotive patent applications, which not only far exceeds other countries, but also ranks first in the world. This is enough to prove that Chinese enterprises are at the forefront of the world in terms of technological innovation.
This strong innovation strength not only promotes the rapid development of new energy vehicle technology, but also lays the foundation for China to maintain its industry dominance in this field.
Solid-state battery technology, for example, was first applied on a large scale in China. This not only solves the problem of battery life of traditional lithium batteries, but also has huge advantages in terms of safety and charging speed.
At the same time, in the field of autonomous driving, Chinese companies are also leading the world in technology. As mentioned above, the number of patent applications in this field in China in 2023 will be as high as 370,000, which shows the importance that Chinese companies attach to autonomous driving technology.
It can be said that the continuous leadership of innovation capability is becoming the fundamental guarantee for China to grasp the initiative in the field of new energy vehicles. In the future, as long as Chinese companies continue to maintain this strong innovation strength, they are destined to dominate the future development direction of the industry.
As long as we firmly grasp these key advantages and give full play to the existing advantages, I believe that China will be a blockbuster in this new energy vehicle war.
The "Made in China" advantage of the automobile industry chain
The localization level of key components is high: core processes such as die-casting have been mastered
When it comes to the rise of China's new energy vehicles, in addition to the technical advantages mentioned above, another magic weapon is the advantages of the industrial chain. This is not only reflected in vehicle manufacturing, but also in the localization level of key components.
Take die casting technology, for example. We know that the die casting process plays a pivotal role in the entire automotive manufacturing process. It can not only greatly improve production efficiency and reduce production costs, but also ensure high precision and high consistency of products. And it is the mastery of this key technology that allows Chinese companies to have an unparalleled comparative advantage in the field of new energy vehicles.
Taking Tesla as an example, it can be said to be a pioneer in the field of new energy vehicles in the world, but the integrated die-casting technology it mainly uses is actually from the hands of the Chinese company "LK Technology". This not only reflects China's technological strength in this field, but also fully demonstrates that Chinese enterprises are quickly grasping the "lifeline" of the automobile manufacturing industry.
Looking at China's own brands, such as BYD, NIO and other companies, their localization rate of core components such as motors and batteries has also reached more than 95%. This not only greatly reduces the dependence on imported parts, but also ensures the safety and stability of the entire industrial chain. It can be said that this is the concentrated embodiment of the typical "Made in China" advantage in the field of new energy vehicles.
Obvious cost advantage: 40% reduction in manufacturing cost
In addition to the advantages in key components, Chinese companies also have obvious advantages in terms of manufacturing costs.
Some industry analysts estimate that the production cost of Chinese new energy vehicle manufacturers is at least 40% lower than that of foreign companies. This cost advantage mainly comes from three aspects:
The first is the effect of scale. With a large domestic market, Chinese companies are able to significantly increase the scale of production, thereby achieving economies of scale and reducing overall costs.
The second is the supply chain advantage. China's NEV companies not only have a well-established local parts supply chain, but also rely on the vast domestic market to establish close cooperative relations with upstream suppliers. This can undoubtedly significantly reduce procurement costs.
Finally, there is policy support. In recent years, the Chinese government has introduced a series of preferential policies to encourage the development of new energy vehicles, ranging from purchase subsidies to tax incentives, which have provided strong support for Chinese companies to control costs.
In general, both the localization advantage of key components and the obvious advantage of manufacturing cost have laid a solid foundation for China's new energy vehicle companies to compete in the future.
The rise of new energy vehicles is bound to subvert the global order
The hegemony of the dollar will collapse: oil demand will fall sharply
When it comes to the rise of China's new energy vehicle industry, we have to mention the global impact it will bring. Because this "Chinese car-making revolution" is likely to completely subvert the existing world order.
First and foremost is the international status of the dollar.
We know that as the "boss" of the current international currency, the foundation of the US dollar is built on the basis of oil trade. However, with the rapid popularization of new energy vehicles in China, global oil demand is bound to drop sharply. This will undoubtedly hit the dollar's position hard.
After all, the oil trade has always been the fundamental support for the "hegemon" of the dollar. Once this foundation is shaken, the dollar's advantage as an international reserve currency will also be shaken. This will inevitably trigger a profound adjustment of the global pattern and have a major impact on the world economic system.
It is conceivable that when this happens, the United States will experience a currency crisis. For China, this will be a once-in-a-lifetime opportunity to reshape the international landscape. It can be said that the boom of new energy vehicles is promoting the quiet advent of a "post-dollar era".
The renminbi is expected to become the new darling of international currencies
So, in the process of the "marginalization" of the US dollar, who will be the new "darling" of the international currency? People in the industry generally believe that this position is likely to be replaced by the renminbi.
The reason for this is that China's dominance in the field of new energy vehicles will pave the way for the internationalization of the yuan. On the one hand, as Chinese companies continue to expand in the global new energy vehicle market, it will inevitably drive a large amount of cross-border flow of RMB. On the other hand, the Chinese government will further promote the widespread use of the renminbi in international trade and investment.
In addition, the exchange rate of the renminbi will also be greatly supported. After all, China is the world's largest market for new energy vehicles, which means that the international status of the renminbi is bound to rise. Not only that, but relying on a strong industrial base, the RMB will also have a stronger ability to resist risks, thus further consolidating its position.
It can be said that the rise of China's new energy vehicle industry is quietly reshaping the international monetary landscape. In the future, when the divine power of the US dollar fades, the RMB will surely become the new global currency hegemon. For China, this is undoubtedly an excellent opportunity to "reach the peak".
In general, with the continuous take-off of China's new energy vehicle industry, the global impact it brings is happening bit by bit. And this impact will eventually lead to profound changes in the world pattern. It can be said that this "Chinese car-making revolution" is quietly changing the appearance of the world.
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