Is China the Key to the Future Electric Vehicle Market?

Is China the key to the future electric vehicle market?
Is China the key to the future electric vehicle market?

While the US electric vehicle market seems to grab the attention of the worldwide media, many experts believe that the industry is wholly dependent upon the future of the Chinese electric vehicle market. Initially the Chinese government had seemed reluctant to push electric vehicles although this has changed over the last couple of years. However, while there are high hopes for the future, is the Chinese government doing as much as it could or should for the electric vehicle industry?

Battery technology

Earlier this week we saw two prominent Chinese car manufacturers set up a very exciting EV battery deal which includes groundbreaking technology. As we have mentioned on numerous occasions, the direct technology associated with electric vehicles of today has gained much momentum over the last decade, although unfortunately the technology surrounding electric vehicle batteries has not been as quick to respond. However, while just a couple of years the US government set up a multibillion-dollar fund to assist with the development of new electric vehicle batteries, it seems as though the Chinese government, behind many of the giant public companies in China, is now looking to the future.

Tweaking regulations

There is no doubt if the Chinese government wanted electric vehicles to be the mainstay of the Chinese economy they could literally tweak and change regulations tomorrow. There may be a number of reasons why the authorities are not forcing the electric vehicle industry into the mainstream as yet which could include financing, public demand, corporate demand and perhaps the need for foreign investment?

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In years gone by the Chinese economy was been the mainstay of Chinese governments, Chinese companies and Chinese investors. You only need to look towards America and some of its larger corporations to hear evidence of extreme difficulties breaking into the Chinese market. This situation has changed dramatically over the last 20 years or so and, while still dictated by the Chinese government, regulations and free-market principles are starting to emerge which assist foreign investors.

A fight between the US and China?

For many years now experts have forecast a fight between the U.S. and Chinese authorities in relation to control of the electric vehicle market. The Far East has been heavily involved in the automotive industry for many years now and indeed is unlikely to allow the US authorities to dictate the pace, dictate regulations, and also the protocols used. We will see conflict and battles between the U.S. and the Chinese authorities although Tesla seems to have broken the mould after setting up a subsidiary in China.

The fact remains that between the U.S. government and the Chinese authorities there are literally billions upon billions of dollars of government investment and tax incentives at stake. Even though the European authorities have been very proactive in the field of electric vehicles it will be the Chinese and the U.S. markets which eventually dictate the future. The US authorities have certainly grabbed the headlines over the last decade or so although its seems that, slowly but surely, the Chinese government is beginning to warm to electric vehicles?