How China Left Europe in the Dust in the Electric Car Race
Beijing has taken advantage of European naivety to fill the Common Market with its vehicles while protecting its own.
The global automotive industry is undergoing a seismic shift, driven by China’s meteoric rise as the world’s largest and most dynamic car market. Recent developments underscore this transformation: the merger of Japan’s Nissan and Honda, Volkswagen’s unprecedented decision to shutter factories in Germany, Tesla’s first-ever sales decline, and General Motors’ plummeting market share in China all point to a new reality. China’s dominance, particularly in electric vehicles (EVs) and hybrids, is redefining competition, leaving European and other foreign manufacturers scrambling to adapt.
China’s automotive edge is rooted in its manufacturing prowess. Its industrial output surpasses the combined US, Germany, Japan, South Korea, and the UK. In 2023, China’s trade surplus in manufactured goods reached 12% of its GDP, bolstered by its control over 80% of critical materials like lithium, cobalt, and rare earths—essential for EV batteries and electronics. This dominance allows Chinese firms to innovate rapidly and scale production at unmatched speeds.
EMN Price at posting:
21.5¢ Sentiment: Sell Disclosure: Not Held
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