Hyperdrive
China Moves to Stop a Crash in Booming Electric-Car Industry
- New rules would restrict startups’ access to production plants
- Government trying to avoid a crash akin to dot-com bust
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As big as its world-leading car market is, China has decided that 486 aspiring electric-vehicle companies are too many.
The country is considering rules to raise the barrier to entry for electric-vehicle makers and nurture fewer but more competitive players, according to people familiar with the matter. Specifically, China plans to clamp down on EV startups who farm out their manufacturing, the people said, asking not to be named as the rules are still being drafted.