Business
2024.11.03 15:03 GMT+8

China's EV rise amid Western tariff challenges

Updated 2024.11.03 15:03 GMT+8
Moiz Farooq

Editor's note: Moiz Farooq is executive editor at Pakistan Economic Net and Daily Ittehad Media group. The article reflects the author's opinions and not necessarily the views of CGTN.

The European Union's recent decision to impose tariffs on Chinese electric vehicles (EVs) marks a significant escalation in geopolitical tensions within the global automotive market. Labeling it a measure to promote "fair competition", the EU has framed this as a way to counter perceived trade imbalances. However, this move seems less about genuine fairness and more about containing China's rapidly expanding influence in the EV sector. The narrative often overlooks the country's role in fostering innovation, sustainability, and affordable green technology within the global EV ecosystem.

China's EV sector has grown immensely, with the nation producing nearly 10 million EVs in 2023 alone. The country now accounts for nearly 60 percent of the global EV sales, with 9 million units sold that year, reflecting both the scale and affordability of Chinese EVs. This success is backed by advancements in battery technology, a government-driven push for environmental progress, and an extensive charging infrastructure. These factors have enabled Chinese manufacturers to deliver high-quality, affordable EVs, increasing accessibility and driving clean transportation worldwide. Despite the EU's protectionist stance, China's EV market has been instrumental in global efforts toward a cleaner future, as it offers scalable solutions that cut costs and boost production efficiency—elements that have proven pivotal in making EVs accessible for diverse markets.

China's leading EV brands like BYD, Nio, and Xpeng have championed cost-effective, eco-friendly options that appeal not only to domestic buyers but also to emerging markets. Central to this success is China's ability to reduce battery costs, a critical factor given that batteries can comprise up to 40 percent of an EV's total cost. Chinese battery giants like the Contemporary Amperex Technology Co., Ltd. (CATL) and BYD have propelled these efficiencies. CATL, for instance, supplies over 37 percent of the global EV batteries, making China the largest battery producer, with a supply share of 70 percent of the world's lithium-ion batteries. These companies have developed batteries with higher energy density, faster charging time, and longer lifespan, giving Chinese EVs a competitive edge in terms of range and efficiency.

A factory view of Contemporary Amperex Technology Co., Ltd. in Ningde, southeast China's Fujian Province, August 8, 2018. /CFP

Aligned with national sustainability targets, including carbon peaking by 2030 and carbon neutrality by 2060, China has poured substantial resources into EV infrastructure. As of 2023, China boasts over 5.2 million public charging stations, a figure that surpasses the combined total of the United States and Europe. This extensive network has not only supported the current EV fleet but also encouraged new buyers, helping drive China's EV adoption rate, which hit an impressive 30 percent of the total vehicle sales in 2023.

Western critics, particularly those in the EU, argue that China's state-backed subsidies have skewed competition. However, this overlooks the efficiencies and technological advancements that Chinese companies have cultivated through years of dedicated policy and investment. Chinese EVs often boast longer battery life, quicker charging time, and more competitive pricing than many Western counterparts, making them appealing to a global audience concerned with cost and environmental impact alike.

China's EV ecosystem has not only reshaped its domestic market but also spurred a global movement toward affordable, clean transportation. Through partnerships in Southeast Asia, Africa, and Latin America, China's EV manufacturers are transferring technology and building the infrastructure needed to accelerate the green transition on a global scale. By exporting not just vehicles but expertise, China is establishing a long-term foundation for affordable, eco-friendly transportation worldwide. In 2023 alone, Chinese EV exports surged by 77 percent, accroding to data from China Association of Automobile Manufacturers, reflecting the global demand and China's proactive approach to green partnerships.

New energy vehicles loaded and shipped at a dedicated terminal of Yantai Port in east China's Shandong Province, July 11, 2024. /CFP

The EU's tariffs on Chinese EVs underscore a preference for short-term protectionism over long-term cooperation in addressing climate change. By embracing Chinese EV advancements, the West has an opportunity to collaborate on innovations that could propel the global transition to green energy. Rather than isolating China's EV industry, fostering collaborative growth could lead to a more sustainable and accessible future for all. China's EV sector stands as a model for how strategic investment, technological innovation, and policy alignment can catalyze a cleaner, greener world.

(Cover Via CFP)

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