The Strange Political Economics of the Chinese Auto Industry
Chinese (BYD) Dancing Car Video link in text This is a case study of one country’s relationship with private companies in a major industry. The central government has made the production of EVs a national priority with massive subsidies. The provincial, county, and local governments compete to attract an EV assembly plant. All levels of government entice new companies with a wide range of incentives and subsidies. The result is that in a short period of time about 100 new plants have been built; a few new ones are planned. The industry may have a total capacity of around 25-30 million cars. Current production was 12.4 million cars in 2024; 2025 will probably be higher. Growth rates in the future will probably be lowered than in the past. This is a common pattern for a new technology. In th...