Hyperdrive
China’s EV Success Story Built on Price Wars, Tesla Factor
- Subsidies aren’t always the magic bullet other nations claim
- Cash helped propel innovation but laggards fell by the wayside
China became a world leader in electric vehicles by showering companies with public cash. It’s a charge increasingly heard in the US and Europe, and a refrain that’s central to the escalating trade war.
If it were only that simple, China would have champions in every industry, from aircraft to semiconductors. The unique rise of China’s EV makers, which are rapidly taking over the world despite Western politicians’ efforts to block them, holds lessons for other countries about how industrial policy can succeed.