Developing the Electric Car in China

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Many car manufacturers are moving to China to produce electric cars. The first company in this line is German auto giant Volkswagen. They are preparing to start the production next year, and they are also targeting the Chinese market. At the same time, General Motors has chosen China to be the place where they conduct research and development about electric cars. These are not the only companies to embark on China as other include Ford Motors, Renault Motors from France and Nissan from Japan. While the future of electric cars cannot be underestimated, China has invested billions of dollars in the industry as they convince key players in the market to adopt vehicles that are battery-powered. China is also investing massively in car-charging stations. The Chinese government seemed serious over the weekend when it announced that would ban the sale of diesel and gasoline powered vehicles. However, the government did not give a specific date for this move. However, the decision to move electric car production to China is a big risk. For starters, in the past, the Chinese government has podded international companies from Japan, Europe and America to hand over their technology to Chinese government so that they can be allowed to trade in the Chinese market. Some of the technologies that have been subjected to this black mail include wind turbines and high-speed trains.

Through this knowledge and the lavish government support, the Chinese companies then mount extensive competition to these international companies. This is not different with electric car technology as the Chinese government wants the big players to share their knowledge. There has been a heavy legal pressure on the issue where local officials want the foreign companies to help local companies. At the same time, big players like General Motors and Volkswagen have to comply. If they refuse, they will be denied access to the Chinese market including the sale of gasoline and diesel powered vehicles in China. At the same time, western car makers say that they fully understand the risks associated with technology transfer. The chief executive officer of Volkswagen in China Jochem Heismann says that the transfer offers everyone the chance to learn and come up with a better product. China has an ambitious plan of becoming a key player in car production by 2025. However, the Trump administration and other business groups have constantly accused western companies of giving their technology easily just for short term gains.

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