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Chinese NEVs become a booster of automobile transformation

This photo taken on June 19, 2023 shows workers working at a factory of Lotus in Wuhan, central China's Hubei Province. (Xinhua/Cheng Min)

China's NEVs not only provide diversified choices for global consumers, but also help more countries achieve green and low-carbon transformation and sustainable development. 

HEFEI/PARIS, April 10 (Xinhua) -- In addition to the EU's mandate for customs registration of electric vehicle (EV) imports from China and potential retroactive tariffs, the United States and Britain are also preparing to conduct so-called anti-subsidy investigations or national security risk investigations into China's EV.

China's EV exports face headwinds.

This is because relevant countries are pursuing protectionism and trade barriers in the name of "fair competition" and "national security," which violates the principles of market economy and WTO rules.

It also reflects the growing competitiveness of China's new energy vehicle (NEV) industry.

During a recent field visit, Xinhua reporters found that Chinese NEVs' competitive advantages depend not on subsidies, but on supply chain integrity and industrial concentration, full market competition, and rapid technology upgrade promoted by the super-large market.

China's NEVs not only provide diversified choices for global consumers, but also help more countries achieve green and low-carbon transformation and sustainable development.

The first-mover advantage of China's auto industry in the transition to new energy is driving the transformation of the global auto industry.

Relying on technological innovation and excellent quality developed through competition in the global market, Chinese NEVs are highly popular in Europe.

Chinese-made electric cars will capture a quarter of the EU market in 2024, up from 19.5 percent in 2023, Europe's clean transport campaign group Transport and Environment (T&E) said in a recent study.

T&E projects that Chinese brands could reach 11 percent of the EU's EV market in 2024 and 20 percent in 2027.

"Tariffs won't shield legacy carmakers for long," said Julia Poliscanova, senior director for vehicles and emobility supply chains at T&E.

Trade protectionism almost always distorts market relations, which is ineffective and costly, said an article recently published on the German business news magazine WirtschaftsWoche.

An increasing number of Chinese automobile brands, especially EV brands, are entering Britain and British consumers are open to that, said Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders in Britain.

Workers are busy at a production line of the new energy vehicle AVATR at a workshop of Chang'an Auto in Jiangbei District, southwest China's Chongqing Municipality, July 20, 2023. (Xinhua/Li Qianlei)

The incoming Chinese brands are good for both UK consumers and the industry, the British motor industry leader said, explaining that the entry of these brands to the UK market stimulates competition, which in turn promotes innovation.

In the "battery valley" in northern France, Chinese enterprises actively join local projects to produce electric vehicles and batteries, a partnership widely appreciated by a region keen on green re-industrialization.

With four "gigafactories" announced in three years, the "battery valley" is interested in "taking on strengths from all countries, including Chinese players who have gained a real lead in battery and electric vehicle technology so that we can also benefit from their know-how," said Yann Pitollet, CEO of Nord France Invest.

In February, Volkswagen agreed to carry out strategic technical collaboration with Chinese automakers XPeng to develop two intelligent connected vehicle models for the Chinese market.

Brandstatter said cooperation with XPeng helps them accelerate research and development, improve efficiency and optimize cost structure.

Rob de Jong, head of the Sustainable Mobility Unit at the United Nations Environment Programme, said that China is a leader in electrification and the promotion of EVs. He hoped that China will share its experience with the world, especially the Global South, and its technology to improve the affordability of EVs around the world.■

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