Summary
China has become the world’s largest car exporter by dominating electric vehicle (EV) production, surpassing traditional carmakers in Europe, Japan, and the U.S.
This shift stems from China’s heavy investment in battery technology, supply chains, and generous subsidies, enabling it to produce cheaper EVs, like the BYD Seal, compared to Western competitors.
Europe and America, reliant on outdated internal combustion engine expertise, have struggled to adapt to this disruptive innovation.
Many nations are imposing tariffs on Chinese EVs, but without robust domestic battery infrastructure, Western car industries face mounting challenges as the EV transition accelerates.
China is also following the well-tread path of Japan and then Korea. Build up a cheap manufacturing base, move into more complex products, then eventually stand up heavy industry in automotive. But China’s experience with batteries through consumer electronics along with its natural abundance of rare earth minerals, alongside the general maturity of EV technology, positioned it well to take an electric automotive route where Japan and Korea previously went ICE.