China’s EV sector is growing at a relatively fast rate. This growth attributes to several factors working together to situate China as the upcoming global leader in all matters EV. The country currently holds the record for having two major EV battery manufacturers in the country and is on a roll to becoming the top authority in EV sales.
According to a UBS report, the Chinese EV industry has experienced massive growth with more EV start-ups than any other country. Experts speculate that this is the country’s strategy to dominate the EV industry. Tesla currently dominates the EV industry with records sales reaching 368,000 units in 2019
However, China is dedicated to upstage the S in the global EV market. According to A statement made by the Vice Chancer at IHS, China is on the way to becoming a global leader in EV manufacturing. He ascertains that EV’s assist the Chinese government in establishing dominance over the industry.
Referring to Yerghin’s statement, electronic vehicles provide three benefits to the Chinese government. China gains a reduction in the oil demand, reduces pollution, and a chance to dominate a singular fundamental global market. The industry is a golden ticket for the Chinese government to become a global leader.
Likewise, the Chinese government has a lot to gain from establishing itself as a global electronic vehicle manufacturer. Yergin affirms that the evil market is going to experience tough competition both parties drive to place themselves in the leading position
The evolution of the EV industry in the future will cover a significant portion of trade relations between the rivalries in economies. Historically the two countries have not been in good trading relations. This is most evident in the trade sanctions from both sides that have affected significant activities. The most notable example is the United States ban on text giant company Huawei from trading with hardware and software suppliers in the United States.
Experts expect that future entries in EV generations are highly dependent on trade relations between the two countries. The future is set to have a multifaceted EV industry should both countries use previous relations to set a precedence for the upcoming global EV scene. Both countries instinctively benefit a good deal from their respective EV industry. The US EV industry contributes 3.5% of its national GDP while China gets 10% of all total sales from the established EV sector. With this in mind, it is safe to relate that the global EV market’s future depends on the interaction between the United States and China.