Gambling Chinese electric cars: Imitating the West or finding its own way?

The pieces of an electric car are hung on the ceiling in the Chinese real estate developers' showrooms, evoking memories of an installation picture in a modern art museum. In fact, this is a symbol of national industrial ambition.
When you come to Foshan, you will see dozens of high-rise buildings rising from areas such as the Thuan Duc New Energy Vehicle Zone which is forming in the heart of the city, which is also part of the southern China manufacturing center. . Local officials are proud that the specialized planning center for research and production of electric vehicles after completion can bring in 100 billion yuan (355 trillion dong) of revenue for the local economy.

Electric cars in China

China wants to become an electric car market
Shunde is one of at least 20 versions of Detroit's electronics center being built when China is developing a comprehensive technology that is expected to be sold with a record number this year. President Xi Jinping wants 500 national electric car makers to become "magnets" for supporting industries when he pushes to build a manufacturing superpower until 2020. Blueprint This aims to bring China to become a self-sufficient country and diversify an investment environment that is strongly dominated by unstable stock and real estate markets. This plan is also one of the main causes for the US-China trade war.

Localities wishing to change their economy are very supportive of this project and want to become part of the project. They rent land at low prices, break down tariff barriers and subsidize housing for car manufacturers, parts suppliers and technical laboratories with the desire to attract and create goods. Thousands of high-tech jobs in the field of developing electric vehicles.

"The new energy vehicle industry is a bet that local governments cannot refuse," said He Xiaopeng, president of Xpeng Motors Technology, a start-up business that received investment from the conglomerate. e-commerce and Foxconn Technology Corporation of Taiwan. "A successful electric vehicle manufacturer can attract at least 200 industrial chain companies to a province."

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The investment amount for the development of electric vehicles is about 209 billion yuan (709 trillion VND) - equivalent to US $ 30 billion - according to Bloomberg calculations based on public announcements. Commitments range from fixed asset investment to development expenditure from producers, private capital and organizations supported by local authorities.

Another center includes the research and production project of Geely Automobile Holdings based in Yiwu, LeEco Car Ecology Area in Huzhou and the Drive Zone in Xiamen.

These areas operate under a typical Chinese commanding economy model. Positive enthusiasm for building a special industry of high-ranking government officials has spread to the suburbs, often reminiscent of the movie "Dream Land": keep building build up then people will come. Localities often build up industrial parks, apartment buildings and schools, offer incentives and hope businesses will come and embrace the opportunity.

This is happening in a place about 1 hour away from Beijing, where the government builds a Capital Mobilization Area that becomes a center for the private capital market worth nearly 2 trillion USD. More than a dozen such areas are designed as financial centers scattered throughout the country.

According to data from the Center for International Studies and Strategies in Washington, between 2009 and 2017, China spent more than $ 36.5 billion to support electric vehicle trading. Currently China accounts for more than half of all electric vehicle sales worldwide.

Rapid urbanization in China has made land scarce, leading to an increase in housing prices and forcing the government to adopt stricter land laws. Through commitments on electric vehicles, the local government can easily ask the central government to license redevelopment of rare agricultural land and offer lower prices to schools to attract commercial tenants. This is attracting one of the largest developers in the country, including Country Garden Holdings and China Evergrande Group.

The chairman of Shunde City, Mr. Zhu Wei, said that last year the city has introduced favorable policies and services for the New Tram area because it is a strategic emerging industry, Buddha Daily. Son said.

New Tram Area in Thuan Son is being built by Country Garden, China's largest developer. To gain the right to implement this project, the company promises to attract supporting businesses to electric vehicles here and achieve tax revenue targets.

"The industrial chain is more complete than the production of cars," said Liu
Gambling Chinese electric cars: Imitating the West or finding its own way? Gambling Chinese electric cars: Imitating the West or finding its own way? Reviewed by Charlotte Bryant on March 01, 2016 Rating: 5

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