The Atlantic: The Electric-Car Lesson That China is Serving Up for America
Tue May, 2021, Age: 3 years
Fueled by heavy government subsidies, China’s electric-vehicle sector has boomed, sparking fears that it may soon overtake the U.S. in a critical industry of the future. Beijing seeks to leapfrog ahead of Western powers on the forefront of next-generation technologies, giving Chinese companies market dominance and the ability to set international standards and influence global norms. The contest over electric cars is therefore a proxy war between the competing economic models and ideologies of the West and China. This competition has influenced the Biden administration’s massive infrastructure bill, which includes a $174 billion program to support the U.S. adoption of electric vehicle technologies. Since 2016, China has effectively built an electric vehicle industry from scratch. China now leads the world in producing the batteries for electric vehicles, and EV startups such as XPeng, Nio, and Li Auto have debuted on the New York Stock Exchange with high market value. But these Chinese companies still have poor brand recognition when compared to Tesla, even in their home markets.