China Offers Support to Accelerate EV Makers’ Global Push
The moves are part of Beijing’s efforts to strengthen its EV and automobile industry market share by increasing exports of its EV and hybrid vehicles
China is encouraging its electric vehicle makers to expand their overseas presence, including forging tie-ups with foreign research institutions and countries to build industrial clusters.
Companies are encouraged to establish research & development centers overseas and collaborate with shipping companies to integrate warehousing and logistics resources in foreign markets, the Ministry of Commerce said in a statement on Wednesday.
The ministry said it would optimize credit support by encouraging banks to support EV supply chain companies domestically and overseas financially. Banks will also be encouraged to expand the scale of cross-border settlements in yuan.
The moves are part of Beijing’s efforts to strengthen its EV and automobile industry market share by increasing exports of its EV and hybrid vehicles. China’s BYD, the Warren Buffett-backed company, had recently surpassed Tesla to become the world’s largest EV maker by sales after it sold almost five times 242,000 Units in 2023. It is expanding showrooms across Europe as it targets more sales there this year.
Industry organizations are also encouraged to strengthen research on overseas markets and guide new energy vehicles and their supply chain companies to optimize international cooperation based on market size, trade potential, consumption structure, and country risks. the ministry said.
Chinese EV shares are mixed in Hong Kong trade on Wednesday, after an overnight rebound in the U.S. At midday BYD shares were up 2.4% while Li Auto and Xpeng were 0.1% and 0.45% lower in Hong Kong, respectively.