China’s policy playbook took its EV sector from zero to hero – can other countries follow?
The global green shift is providing a way for emerging economies to catch up with global powerhouses, with help from China’s supply chain
China’s electric vehicle (EV) industry sits at the centre of numerous economic and geopolitical trends: consumer spending, environmental protection, trade policy, high-end manufacturing, technology and more. In this short series, we assess the current state of the sector within these broader contexts. Here, Yeon Woo Lee asks whether Beijing has written a blueprint for developing countries to kick-start their own contenders in the field.
Emerging markets once seemed like also-rans in the global car industry. In the days when petrol vehicles predominated, manufacturers required vast supplier networks and hard-won expertise in engines, transmissions and other core power train technologies to compete – two advantages among many for established, wealthier players.
Many emerging-market governments have taken cues from China’s state-led playbook, using incentives to create demand while pushing companies to localise production and supply chains.