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Chinese NEVs' Competitive Advantages Depend on Large Market and Rapid Technology Upgrade

By Xinhua|Apr 11,2024

Workers work on an assembly line at a plant of Xiaomi in Beijing, capital of China, March 25, 2024. (Photo/Xinhua)

Hefei/Paris - In addition to the EU's mandate for customs registration of electric vehicle (EV) imports from China and potential retroactive tariffs, the United States and Britain are also preparing to conduct so-called anti-subsidy investigations or national security risk investigations into China's EV.

China's EV exports face headwinds.

This is because relevant countries are pursuing protectionism and trade barriers in the name of "fair competition" and "national security," which violates the principles of market economy and WTO rules.

It also reflects the growing competitiveness of China's new energy vehicle (NEV) industry.

During a recent field visit, Xinhua reporters found that Chinese NEVs' competitive advantages depend not on subsidies, but on supply chain integrity and industrial concentration, full market competition, and rapid technology upgrade promoted by the super-large market.

China's NEVs not only provide diversified choices for global consumers, but also help more countries achieve green and low-carbon transformation and sustainable development.

The first-mover advantage of China's auto industry in the transition to new energy is driving the transformation of the global auto industry.

China's NEV industry has been a highlight of the global auto industry, with its huge market size and strong growth potential.

Data from the China Association of Automobile Manufacturers shows that in 2023, China's NEV production and sales increased by 35.8 percent and 37.9 percent year-on-year respectively. The sales accounted for nearly 65 percent of total global NEV sales. China has been the world's top producer and seller of NEVs for nine years in a row.

China's huge consumer market provides a favorable environment for the research and development and upgrade of NEV technology. Meanwhile, due to the higher level of acceptance among Chinese consumers of vehicle intelligence and new technologies, many automotive companies are prioritizing the launch of new products and technologies in the Chinese market.

This photo taken on March 25, 2024 shows assembly lines at a plant of Xiaomi in Beijing, capital of China. (Photo/Xinhua)

Compared with traditional cars, NEVs are more electrified, intelligent, internet-connected and digitalized. China's NEV industry featuring innovative thinking and innovation capabilities has achieved leapfrog development, and made continuous progress in core technologies through nearly two decades of practice.

BYD has a special "technical fishpond" that contains various technologies to meet market demand, said Wang Chuanfu, chairman of BYD, China's leading NEV manufacturer.

Thanks to intelligent technology such as autonomous driving and intelligent cockpit, China's NEV products have been recognized by the market.

Globally, Chinese enterprises have shown advantages in mass production and upgrade speed, with faster and more efficient innovation cycles.

Chinese vehicles are "simply good cars and people buy them," Mathias Miedreich, CEO of Umicore headquartered in Belgium, was quoted by the London-based Financial Times as saying.

Chinese Minister of Commerce Wang Wentao said Sunday that Chinese EV manufacturers' rapid development is a result of constant tech innovations, a well-established supply chain system and full market competition, not subsidies.

The accusations of "overcapacity" by the United States and Europe are groundless, he said.

Wang also noted that the development of China's EV industry has made an important contribution to the global response to climate change as well as green and low-carbon transformation.


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