The ongoing trade tensions between China and the European Union have created an opportunity for collaboration in the electric vehicle industry. Wan Gang, the man behind China’s electric car strategy, believes that combining investments with commodity trade could be a beneficial move for both sides.
Wan Gang, who is now the president of the China Association for Science and Technology, suggested that Chinese companies consider investing in the European electric vehicles market. This move not only has the potential to strengthen the relationship between China and the EU but also create local jobs in Europe.
History of Electric Cars in China
Wan Gang’s involvement in China’s electric car industry dates back to the early 2000s when the country joined the World Trade Organization. The push for electric cars was not about competition but rather about ensuring China’s survival in a world facing oil price volatility and environmental challenges.
The decision to focus on electric vehicles was also driven by environmental concerns, particularly air pollution in Chinese cities. By 2010, the government had recognized the need to tackle pollution by promoting electric vehicles, starting with buses and taxis.
Market Growth
The growth of new energy vehicles, including battery and hybrid-powered cars, has been significant in China. These vehicles now make up more than a third of new passenger cars sold in the country, according to local passenger association data.
Despite the progress, Wan Gang emphasized that the electric car industry still faces challenges. One of the key issues is range anxiety among drivers, which can be addressed by developing technology that enables vehicles to automatically determine when and where to charge.
As the electric vehicle industry continues to evolve, collaboration between China and the European Union could lead to mutual benefits. By investing in the European market, Chinese companies can not only expand their global presence but also contribute to the growth of the electric vehicle industry in Europe. This partnership has the potential to drive innovation and address environmental concerns on a larger scale.