China spent $230.8 billion over more than a decade to develop its electric car industry, according to the Center for Strategic and International Studies.
The scale of government support represents 18.8% of total electric car sales between 2009 and 2023, said Scott Kennedy, trustee chair in Chinese Business and Economics at CSIS. He noted the ratio of such spending to EV sales has declined from more than 40% in the years prior to 2017, to just above 11% in 2023.
There are at least two different ways to interpret the data on industrial policy support for EV makers.
China’s trading partners could point to 15 years of sustained regulatory and financial support for domestic producers, which has fundamentally altered the playing field to make it much harder for others to compete in China or anywhere else where Chinese EVs are sold.
By contrast, defenders of China could point out that the data show that subsidies as a percentage of total sales have declined substantially, from over 40% in the early years to only 11.5% in 2023, which reflects a pattern in line with heavier support for infant industries, then a gradual reduction as they mature.
In addition, they could note that the average support per vehicle has fallen from $13,860 in 2018 to just under $4,600 in 2023, which is less than the $7,500 credit that goes to buyers of qualifying vehicles as part of the U.S.’s Inflation Reduction Act.
there is nothing particularly innovative about China industrial strategy - it is simply long term planning with ROI calculations going multiple decades out. The challenge for the US is how to execute similar plans in a system of governance which encourages (demands?) short term thinking. If there is a requirement for the 'deep state' it is this; to carry out long horizon objectives whilst the Punch and Judy show of politics cycles around every 4/5 years
Pretty simple. Replace Profit with Quality of Life metrics.
But the Elite (those who own the most land, spectrum, mining rights, licenses, monopolies, shares, overseas tax avoiding shell companies etc) cant do it cause of their own mental programming since birth.
Making the same mistakes, suffering from the same halucinations the British Elite did as their unsustainable Empire wound down.
That said at the individual level all this doesnt matter. People will move to where ever the opportunities are as they always have.
Quite a lot - especially compared with total VC investment in the US per year: "The U.S. venture ecosystem ended 2020 with more than 10,800 companies across the country receiving venture funding and approximately 1,965 VC firms managing 3,680 venture funds with $548 billion in assets under management"
Most of the subsidies listed in this report are rebates and sales tax exemptions, which benefit people who buy EVs. Those subsidies are also available to foreign manufacturers that sell EVs in China - most notably Tesla.
Very similar subsidies exist in the US, such as federal and state tax credits.
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[ 4.8 ms ] story [ 42.2 ms ] threadChina spent $230.8 billion over more than a decade to develop its electric car industry, according to the Center for Strategic and International Studies.
It’s difficult to get a lead on companies with entrenched mature technology like ICE cars, but new technology, with new logistics levels entry.
A caveat in that I’m not an expert on any of this just an arm chair pundit mainlining YouTube videos.
Aircraft is a huge market with Boeing seemingly throwing away its position, Airbus unable to expand much more.
Still electric aircraft aren’t physically viable, but should the engineering progress then Chinese industries would be able spawn a viable industry.
Some of the recent battery announcements have specified aircraft as the target market:
"CATL launches condensed battery with an energy density of up to 500 Wh/kg, enables electrification of passenger aircrafts"
https://www.catl.com/en/news/6015.html
But the Elite (those who own the most land, spectrum, mining rights, licenses, monopolies, shares, overseas tax avoiding shell companies etc) cant do it cause of their own mental programming since birth.
Making the same mistakes, suffering from the same halucinations the British Elite did as their unsustainable Empire wound down.
That said at the individual level all this doesnt matter. People will move to where ever the opportunities are as they always have.
And the evidence for this leading to long-term thinking is what exactly?
Very similar subsidies exist in the US, such as federal and state tax credits.