Global leader: In Guangzhou, a city of over 18 million people in southern China, the sounds of rush hour traffic have gradually shifted from roaring engines to the soft hum of electric vehicles (EVs). For drivers like Lu Yunfeng, who works for a private hire service, the reason for switching to electric is simple: “I drive an electric vehicle because I am poor.” Standing beside him at a charging station, another driver, Sun Jingguo, nods in agreement. “Driving a petrol car is too expensive. I save money with an EV,” he says, while leaning against his white Beijing U7. “Also, it protects the environment.”
These comments reflect a reality in China, Global leader, that many climate advocates around the world only dream of. While EVs are often seen as luxury items in many countries, in China, they have become a practical and affordable necessity. Nearly half of all new cars sold in the country last year were electric, a testament to how deeply embedded EVs have become in daily life.
China’s journey to EV dominance was not accidental. At the turn of the century, the nation’s leadership identified future technologies as key to economic advancement. Although once dubbed the “kingdom of bicycles,” China has transformed into the world’s largest EV market, largely due to a bold, long-term strategy that shifted focus from traditional combustion engines to electric power.
The origins of this transformation are often traced back to Wan Gang, a German-trained engineer who was appointed China’s minister of science and technology in 2007. Noting that foreign brands dominated Chinese streets, Wan advocated for a leapfrogging strategy: since China could not yet compete with established Western automakers on petrol or diesel vehicles, it would instead aim to lead in electric mobility.
Despite initial references to EVs in China’s five-year economic plans as early as 2001, it wasn’t until the 2010s that the government rolled out massive subsidies to boost the sector. now it is Global leader. Over $230 billion has been invested by the Chinese state from 2009 to 2023, according to the Center for Strategic and International Studies (CSIS). These subsidies flowed to all stakeholders—manufacturers, battery suppliers, consumers, and energy providers—creating an entire ecosystem around electric transportation.
One notable beneficiary of this strategy has been BYD, which transitioned from producing smartphone batteries to becoming the world’s top-selling EV company, overtaking Tesla earlier this year. Similarly, CATL, a battery manufacturer based in Ningde, now produces a third of all EV batteries globally and supplies giants such as Tesla, Volkswagen, and Ford.
China’s government not only supported industrial development but also ensured infrastructure was in place. The country now hosts the world’s largest public charging network, particularly dense in urban areas, placing charging stations within easy reach for most EV drivers.
Analysts such as Michael Dunne believe China is “10 years ahead and 10 times better” than other nations when it comes to EV technology. This progress has been underpinned by what some label “state capitalism”—centralised, long-term planning that mobilises vast national resources. Critics in the West argue that this creates unfair competition. However, Chinese EV leaders argue the playing field is level for all companies, whether domestic or foreign.
Brian Gu, president of Chinese EV firm XPeng, insists the support seen in China mirrors what is also offered in Europe and the US. “But I think China has done it more consistently,” he says, “and in a way that has created the most competitive environment. There’s no favouritism here.”
As competition heats up globally, China’s head start in EVs may be difficult to overcome. What began as a government-led push has evolved into a fast-growing, innovative industry that is not only transforming transportation at home but also reshaping the global automotive landscape.
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