{"id":73576,"date":"2024-06-22T09:03:33","date_gmt":"2024-06-22T13:03:33","guid":{"rendered":"http:\/\/autosector.com\/?p=73576"},"modified":"2024-06-22T09:03:33","modified_gmt":"2024-06-22T13:03:33","slug":"china-spends-at-least-230-billion-trying-to-win-the-ev-race-think-tank-finds","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=73576","title":{"rendered":"China spends at least $230 billion trying to win the EV race, think tank finds &#8211; Autoblog"},"content":{"rendered":"<figure><figcaption>\n  The BYD Dolphin is one of <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tag\/china\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:0;\">China&#8217;s<\/a> best-selling cars.<span class=\"copyright\">John Keeble\/Getty Images<\/span><br \/>\n <\/figcaption><\/figure>\n<ul class=\"summary-list\">\n<li>China has spent at least $<a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/bmw\/230\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:1;\">230<\/a> billion on becoming an EV superpower, according to a new study.<\/li>\n<li>China is now the world&#8217;s biggest EV market, with firms like BYD fast expanding overseas.<\/li>\n<li>Fears of a flood of cheap Chinese vehicles have pushed Europe to impose new tariffs.<\/li>\n<\/ul>\n<p>China has spent at least $230 billion on government support to <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/electric\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:2;\">electric vehicle<\/a> makers such as BYD since 2009, according to a new study from the <a href=\"https:\/\/www.csis.org\/blogs\/trustee-china-hand\/chinese-ev-dilemma-subsidized-yet-striking\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:3;\">Centre for Strategic &amp; International Studies<\/a> think tank.<\/p>\n<p>The funding has played a crucial role in nurturing China&#8217;s booming EV industry, which has prompted Europe to raise <a href=\"https:\/\/www.businessinsider.com\/chinese-ev-companies-hit-with-new-tariffs-in-the-eu-2024-6?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:4;\">trade arriers <\/a>amid fears of a wave of cheap EV exports.<\/p>\n<p>The European Union last week announced <a href=\"https:\/\/www.businessinsider.com\/chinese-ev-companies-hit-with-new-tariffs-in-the-eu-2024-6?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:5;\">additional tariffs of up to 38%<\/a> after concluding that Chinese firms were benefiting from unfair subsidies, allowing them to sell vehicles at far lower prices than their European rivals.<\/p>\n<p>Government subsidies have been a central pillar of China&#8217;s quest to become an EV powerhouse over the past decade.<\/p>\n<p>China is now the world&#8217;s largest electric vehicle market, accounting for 60% of global EV sales in 2023, per the IEA \u2014 well above rivals like the US and <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tag\/japan\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:6;\">Japan<\/a>.<\/p>\n<p>Many of its biggest companies are now making their mark on the global stage, with industry leader <a href=\"https:\/\/www.businessinsider.com\/ken-griffin-on-chinas-byd-ev-outperforming-elon-musks-tesla-2024-1?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:7;\">BYD briefly overtaking Tesla as the world&#8217;s largest EV producer<\/a> late last year.<\/p>\n<p>Data from CSIS showed that government support for China&#8217;s electric vehicle market roughly tripled between 2017 and 2020, and hit before rising to an eye-watering $45 billion a year in both 2022 and 2023.<\/p>\n<p>EV makers in China can get government support through several routes, including infrastructure subsidies, tax exemptions, and buyer <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/new-car-incentives\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:8;\">rebates<\/a>.<\/p>\n<p>CSIS said the $230 billion figure was probably an underestimate, as it did not include support from regional governments, many of which have <a href=\"https:\/\/asia.nikkei.com\/Business\/Business-Spotlight\/China-s-local-governments-ride-to-the-rescue-of-EV-startups\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:9;\">invested heavily in local EV companies<\/a>. It also excluded subsidies for other parts of the EV supply chain such as <a class=\"injectedLinkmain\" href=\"https:\/\/www.autoblog.com\/tag\/battery\/\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:10;\">battery<\/a> manufacturing.<\/p>\n<h2 id=\"93cf5bc2-b65e-4765-b3b1-1c807a270bfd\"><span style=\"font-size: 18pt;\">Intense competition<\/span><\/h2>\n<p>Battery giant CATL, which controls about a third of the global market, received $809 million in government subsidies last year, CSIS estimated, double the sum in 2022.<\/p>\n<p>Massive government support has cultivated intense competition among <a href=\"https:\/\/www.businessinsider.com\/china-tesla-electric-vehicle-market-dominance-competition-byd-aion-wuling-2024-4?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:11;\">China&#8217;s legion of EV companies<\/a>, which in turn has led to low prices. <a href=\"https:\/\/www.businessinsider.com\/byd-seagull-cheap-ev-electric-car-tesla-china-2023-4?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:12;\">BYD&#8217;s Seagull hatchback<\/a>, one of the best-selling EVs, starts at less than $10,000 in China.<\/p>\n<figure>\n <img decoding=\"async\" class=\"grp-full lazy\" src=\"https:\/\/media.zenfs.com\/en\/business_insider_articles_888\/35c134cc296c7e0f15c3d9189332c88f\" alt=\"The yellow BYD Seagull electric hatchback.\" data-uuid=\"e3d338f6-3f28-35c8-9541-d7eb0a407af5\" loading=\"lazy\"\/><figcaption>\n  The BYD Seagull.<span class=\"copyright\">BYD<\/span><br \/>\n <\/figcaption><\/figure>\n<p>By comparison, most EVs sold in the U.S. are <a href=\"https:\/\/www.businessinsider.com\/evs-too-expensive-5-upcoming-affordable-models-kia-chevy-volvo-2024-6?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:13;\">more expensive models<\/a>, leaving America lagging behind China on the switch to electric.<\/p>\n<p>The Biden administration launched its own round of government support for electric vehicles through the 2022 Inflation Reduction Act (IRA), which includes <a href=\"https:\/\/www.businessinsider.com\/tesla-tax-credit?utm_medium=referral&amp;utm_source=yahoo.com\" target=\"_blank\" rel=\"noopener\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:14;\">tax credits on U.S.-made EVs that add up to a $7,500 subsidy<\/a>.<\/p>\n<p>A study by Penn Wharton University published last year found that all the clean vehicle provisions in the Act would cost about $393 billion between 2023 and 2032.<\/p>\n<div class=\"read-original\">\n Read the original article on <a href=\"https:\/\/www.businessinsider.com\/china-electric-vehicles-government-subsidies-win-ev-race-byd-tesla-2024-6\" data-ylk=\"elm:context_link;itc:0;pos:1;sec:donut-hole;cpos:15;\">Business Insider<\/a>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The BYD Dolphin is one of China&#8217;s best-selling cars.John Keeble\/Getty Images China has spent at least $230 billion on becoming an EV superpower, according to a new study. China is now the world&#8217;s biggest EV market, with firms like BYD fast expanding overseas. Fears of a flood of cheap Chinese vehicles have pushed Europe to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8313,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[3],"tags":[],"class_list":["post-73576","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-design-concepts"],"_links":{"self":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/73576","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=73576"}],"version-history":[{"count":0,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/posts\/73576\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=\/wp\/v2\/media\/8313"}],"wp:attachment":[{"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=73576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=73576"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/autosector.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=73576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}