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Europe and America, reliant on outdated internal combustion engine expertise, have struggled to adapt to this disruptive innovation.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 has very few petroleum and methane reserves so there’s no real industry in China to subsidize for those. China does have lots of coal reserves though. They have the 4th largest in the world right after the USA. Yes, China heavily subsidizes their available fossil fuel.
“The GSI identified around USD 18 billion (CNY 121 billion) of subsidies given to the generation of coal-based electricity in 2015.” source