Prof. Sili Zhou shares insights in a panel interview conducted by CGTN World Today
China’s rapid growth in the electric vehicle (EV) sector is rooted in long-term governmental planning and corporate innovation, successfully creating an industry chain worth billions of dollars and propelling the nation to become the world’s largest auto exporter. This competitiveness has garnered international attention—some Western carmakers say they are feeling the impact, while certain governments cite “overcapacity” or impose tariffs in response.
What have the Chinese government and businesses done right to nurture this booming industry? How is the rise of Chinese EVs transforming the global automotive landscape? Prof. Sili Zhou —Associate Professor in the Faculty of Social Sciences at the University of Macau and a member of the Macao Economy team at the Asia-Pacific Academy of Economics and Management (APAEM)—was recently invited to appear on China Global Television Network (CGTN) World Today, airing on December 27, 2024. Hosted by Ding Heng, the program also featured Warwick Powell, Adjunct Professor at Queensland University of Technology and a Senior Fellow at Taihe Institute, as well as Chen Jiahe, Chief Investment Officer of Novem Arcae Technologies.
According to Prof. Zhou, years of policy planning combined with a firm commitment to carbon neutrality laid the groundwork for China’s rapid EV industry expansion. First, he highlights the importance of a “top-level design + market-driven” dual approach in fostering the new-energy vehicle sector. Fiscal subsidies, research and development incentives, and charging infrastructure in the early stages allowed China to rapidly build a large-scale EV market with closely integrated industry links. These moves not only raised the bar for the sector but also enabled Chinese automakers to accumulate core EV technologies and achieve breakthrough innovations in a relatively short time.
Prof. Zhou employed a vivid analogy to explain the development path: “China has earned a lot of time to lift up more ‘Elon Musk styles’ of the entrepreneur, with bringing for more homemade manufacturers who can make big stuff that we can export more things, but import less from the rest of the world.” This, he argues, encapsulates his view on China’s manufacturing upgrade trajectory—restructuring global value chains by cultivating high-tech enterprises.
He further explains that in its growth phase, China’s EV industry has garnered global attention and recognition through competitive pricing and advanced manufacturing techniques. Chinese companies excel at leveraging economies of scale and complementary cooperation within the industry to reduce production costs, continually refining their supply chains in key parts manufacturing. China’s emergence as the world’s largest auto exporter in 2023 is mainly attributed to this rapidly expanding “integrated competitiveness.”
For the global automotive industry, Prof. Zhou sees Chinese EV makers’ development as invoking a “catfish effect.” As major international automakers inevitably feel the pressure, concerns over Chinese “overcapacity” have surfaced, and some Western governments have responded by imposing tariffs. However, Prof. Zhou contends that—just as historical industrial shifts have shown—any emerging industry will face skepticism early on. Ultimately, a company’s ability to succeed in international markets depends on product quality and market demand rather than protectionist measures.
Looking ahead, Prof. Zhou emphasizes that the success of Chinese EVs can serve as a valuable reference for other nations and companies, helping to advance the global move toward low-carbon development. He calls for continued improvements in technological innovation and brand leverage, promoting further cooperation to contribute more to green mobility worldwide.
For details, please visit: https://radio.cgtn.com/podcast/news/1/Panel-How-are-Chinese-EVs-reshaping-global-auto-industry/526521