China has implemented a comprehensive strategy that combines research and development programs, tax incentives, production and purchase subsidies, and innovative regulations. This approach has enabled China to emerge as the leading producer of EVs, accounting for six out of ten globally, and a significant player in battery production.
According to Peter Morici, a renowned economist, the Biden administration must develop a winning EV strategy to prevent Chinese carmakers from capturing American jobs and straining the federal budget with indefinite subsidies.
Analyst Insight
“China’s strategic approach to the EV industry has paid off, and the country is now reaping the benefits,” said Dr. Morici. “The Biden administration must take a proactive approach to support American automakers and ensure a level playing field in the global market.”
Statistics
- – China produces 60% of global EVs
- – China leads in battery production
- – American and European automakers face significant competition from Chinese carmakers
In Essence
The Biden administration faces a critical challenge in developing a comprehensive strategy to support the American EV industry. Failure to do so may result in Chinese carmakers capturing a significant share of the global market, leading to job losses and strain on the federal budget.
