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Anjani Trivedi

China’s Closing the $6 Trillion Electric-Car Gap

Beijing is redirecting subsidies to charging infrastructure. This is commendable, but implementation will be key.

The electric subsidies slide.

The electric subsidies slide.

Photographer: Qilai Shen/Bloomberg

China is moving to close the $6 trillion cost barrier to the widespread adoption of electric cars.

As part of its much-awaited new energy policy, China on Tuesday rolled back its subsidies and imposed tougher performance requirements for electric vehicles. Beijing’s outlays will be reduced by around 60 percent, after an initial transition period that lasts until June, while local-government handouts will be terminated. This provincial funding now will be redirected to charging stations and other related infrastructure construction.